GM may lease Chevy Volt batteries
In order to sell the Chevy Volt for $30,000 or less, General Motors is considering leasing the lithium-ion batteries to customers who buy the car. As AutoblogGreen points out, renting car parts is an innovative strategy to get the Volt to market in time and at the right price. Having a car payment and a battery payment, however, might not be fun for Volt owners. The upside, however, is that GM would presumably warranty the batteries for the life of the lease, easing concerns over what happens to the battery packs if and when they fail.
In a way, GM has used this tactic in the past. Back in the day, the EV1 electric car was only available to lease, not to own. Of course, as most of us know, leasing the EV1s eventually bit GM in the arse when it went to retrieve the cars and encountered significant resistance from owners who had become attached to them. This plan seems to get around that issue, as a Volt owner will actually own his car, just not the batteries. Of course, if GM ever decides to ask for the battery packs back, owners may be left with a giant generator on wheels.
[Source: AutoblogGreen]
Reader Comments (Page 1 of 3)
stevefazek 7:09PM (2/28/2008)
Leasing batteries is a good thing. Even for Pure EVs. a EV simular to the size of a malibu would cost 30 grand over half of that for batteries, The monthly payment would be a bit higher then a gas burning brother but that is offset by gas costs.
Remember this ICE is cheap to build but expensive to fill up. BEVs are expensive to build but cheap to run.
Gas prices here in CT people are spending 160 a month in Gas. while with a BEV they could spend around 30-40 a month in electricity. Thats 120 bucks at a lease rate would be around on almost about 66% of the cost of leasing batteries.
For the nay sayers wait this summer untill gas is 3.75 for most of the country and 5 bucks a gal in nor cal.
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Keith 3:02PM (8/15/2007)
Interesting because this might open up a market for "tuner batteries" with more power / longer life and such. If I don't "own" the battery then I'm going shopping for the best price/performance deal if I ever own a Volt.
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lotusanimals 3:40PM (8/15/2007)
I'm sorry and I truly hope GM has a good next century but why would anybody even bother when you have Mini Coopers coming in just a year or so with diesel motors and regenerative braking. The mini d registers almost 70 mpg and that is with the new measuring system. Mini's are far more superior in quality and technology and super azz fly!!!Sorry people but this is just another one for the history books.
Mr. Oak 3:56PM (8/15/2007)
@ lotusanimals: Hey BMW Mini couldn't get the gas powered cars working properly, I think I'l sit out the Deisel regenerative braking adventure until they have worked the kinks out.
epilonious 4:15PM (8/15/2007)
lotusanimals: Because people have different opinions, tastes, and motives than you do.
lotus3 8:03PM (8/15/2007)
NO I'm sorry I actually have been on the side lines of the MINI European release of the regenerative braking and you obviously are thinking if GM owned MINI they would be having problems but the systems are Very unique and working like a dream. Sorry guy-I hate that people like you make up stories to feel good but the cars are amazing and the extra gas saved is blowing hybrid systems in the dirt. MINI is on track to have the systems released in the us in a year or so and possibly the diesel. BMW doesn't release systems prematurely without exhaustive testing you should know better .
Castle 11:18PM (8/15/2007)
Too bad GM doesn't own the batteries, they are supplied by A123, which in turn is licensed from MIT.
Vinny 3:04PM (8/15/2007)
I want this car! Look at all those beers!
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Mike G 3:23PM (8/15/2007)
And the best part about all that beer is the car can also be powered by methane!
mavkato 3:10PM (8/15/2007)
could it open up a market for a stripped down version without batteries - with the gas engine directly powering the electric drive motors?
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Allan 3:14PM (8/15/2007)
Sounds like a gimmick to say the car is one price and then say "oh... but you need to lease the batteries for another $X/month." And I wouldn't be surprised if they kept a lock on being the only battery supplier.
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geo.stewart 4:15PM (8/15/2007)
If they are smart, they will welcome other mftr to offer batteries. this would promote electric vehicles by bringing the price down on batteries and with them first to market would be a huge boost.
nosmas 3:19AM (8/16/2007)
depending on the price, this leasing could wipe out any gas savings :(
500 7:20PM (8/17/2007)
Nosmas,
The cost of ownership outweighs the gas savings? Um, you mean like every other electric or hybrid vehicle ever developed so far?
Chris Kivi 3:24PM (8/15/2007)
I am a big fan of Chevrolet Vehicles. My new body style 2005 4 cylinder Malibu had 25/35 on the Maroney Label, but I actually do better on the highway, normally seeing 39.9 average MPG doing 70 mpg. You don't have to believe me but it's true. However I am going to get the VOLT when it comes out, because we can talk all we want about reducing gasoline consumption, it's time to order these cars, get on the waiting list and be the first in the world to actually put our foot where our money is, instead of in our mouths. By far the VOLT is very sharp looking and will be no less reliable than any of my other GM products myself, and our family has owned. Chevrolet with over 30 cars with 30 MPG and better proves that GM is intent of producing economical cars, while still proving the style we want. With Nation wide crack downs on speeding, and things such as the $1000 Speeding Tax in Virginia; the argument to get cars with smaller, more efficient power plants is turning into a very common sense idea.
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Greek Boy 3:20PM (8/15/2007)
I really think GM will fail with this Volt. Too many things against it. Sales will be minimal at best. There will be far better choices to save money and for less money.
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Mike G 3:24PM (8/15/2007)
I agree - so many if's and's or but's with these Volt stories - that car doesn't have a snowball's chance in hell of actually happening.
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KC 3:29PM (8/15/2007)
Well I guess it was either lease the batteries or through in a Chevy Cobalt to overcome the sticker shock when people saw that the batteries for their new Volt cost more then the Cobalt
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Kowell 3:29PM (8/15/2007)
Sounds like a gimmick to just pull the plug the first chance they get like they did with the EV1.
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Phillip 3:45PM (8/15/2007)
Stop watching "Who killed the electric car"