[Oeva-list] LEAF Pricing

The Donovans r_donovans at yahoo.com
Thu Mar 18 16:24:02 PDT 2010


My take is that a Leaf priced around $40K is to high for the product and discourage early adopters. Sure, they can start out high and lower as a marketing scheme but, if that's what they are doing, it is short-sided. This leaves the door open to other EV business plan approaches, such as Better Place that is pushing a battery switch business plan:
 
http://blog.betterplace.com/2010/03/quicker-than-quick-charge-extending-ev-range-instantly-with-battery-switch/
 
It's too high of an initial investment. People will take a "wait and see" attitude on which strategy will win out. My preference would have been for a more aggressive initial pricing scheme to encourage early adopting and maintain grassroots excitement that may encourage more states to push for a recharging infrastructure.
 
Richard Donovan

 



________________________________
From: phil hochstetler <phil at hochstetler.com>
To: Gene Climer <climer97007 at yahoo.com>; OEVA <oeva-list at oeva.org>
Sent: Thu, March 18, 2010 3:54:40 PM
Subject: Re: [Oeva-list] LEAF Pricing

I can think of a couple things that might work in favor of lowering the price:

They are going to offer a "lease" or "buy" option.  If you lease, you
lease car + battery.  If you buy, you buy both.  There will be $7500
federal plus state tax credits.  They have said that if you lease,
they will lower the lease price by the amount of tax credits (which
they keep since you are leasing).  The effect here is to level the
cost structure for lease vs buy.

They plan recycle the batteries at 5 years by selling them to
Utilities for grid stabilization projects.  This has much higher
dollar value than trying to recycle the raw lithium so again should
lower the cost of the batteries (lease and buy options).

New battery options for old vehicles.  I read that they would be
developing new battery options that would be swappable into the car in
the future.  This makes buying the car more attractive if you know
that in the future you can get more range or faster charge times with
better battery technology.  This does not really lower the price now
but protects you from a 5 year old car with a worn out battery and no
options for replacement from the dealer.

--phil

On Thu, Mar 18, 2010 at 2:38 PM, Gene Climer <climer97007 at yahoo.com> wrote:
> Time will tell how reasonable the price will be. The thing they have in
> their favor is that supply their own battery pack. They do no have to pay
> profits to someone else to build it. They can live with the topline profit
> of the combined vehicle. This is the benefit of vertical and horizontal
> integration. I would expect a high starting price. they can always lower it
> later. When entering a price negotiation, you never start out where you
> expect to end up.
>
> Gene
>
> ________________________________
> From: Mike Butts <mbutts at ieee.org>
> To: oeva-list at oeva.org
> Sent: Thu, March 18, 2010 2:12:16 PM
> Subject: Re: [Oeva-list] LEAF Pricing
>
> It's time to replace the Prius I've driven daily since 2000. It cost me
> about $23K in today's dollars, after tax benefits. I've been watching the
> Leaf closely, after Aptera got hijacked. I've been wondering how they can
> meet a reasonable price with the 24kWh pack this steel 4-door hatchback
> requires. We shall see.
>
> More discussion at Autoblog Green:
>
> http://green.autoblog.com/2010/03/17/report-nissan-leaf-priced-at-u-s-38-500-in-japan/
>
>   --Mike
>
> ---
> Mike Butts mbutts at ieee.org
>
>
> _______________________________________________
> Oeva-list mailing list
> Oeva-list at oeva.org
> http://www.rdrop.com/mailman/listinfo/oeva-list
>
>


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