GM had been in a developmental and production partnership with Indian electric carmaker REVA to develop a low cost pure electric car for the Indian market. The e-Spark was moving towards a debut at the end of the year, though finding a lithium ion battery maker in India was noted to be a stumbling block.
Suddenly, however, the venture has ended, as REVA was purchased by the large Indian carmaker Mahindra and Mahindra. As a consequence of this acquisition, GM was forced out, and had to scrap its plans to build the India-based electric car for the Indian market.
“Now with Reva changing its ownership we saw no particular value in doing this experiment,” said Karl Slym, head of GM’s India operation.
GM had already planned to invest $246 million to build a facility to build electric motors, controls, and possibly electric cars.
With the REVA partnership ended, GM will move its pure EV development operation in-house to Detroit. Though the e-Spark was to launch by the end of this year, GM can no longer provide a timeframe as to when the car will be ready, if at all. It is instead more likely GM will simply introduce the Volt in India.
Sources have indicated that GM will be testing an electric car in a pilot program in the US. Though GM has no official plans to launch such a vehicle here, if the market shows demand is sufficient, GM will be prepared. More likely, as GM and many analysts predict, the extended-range electric Volt will prove to be more popular in this country.
“We are studying many alternatives after VOLT,” vehicle line director for the Volt, Tony Posawatz says.
“We certainly are studying BEV’s but EREV will carry the day for many years,” he adds.
Meanwhile, Nissan is now claiming it has 19,000 pre-orders for the LEAF EV between the US and Japan, with 13,000 in the US and 6,000 in Japan. This is already double Nissan’s first year global production capacity of 10,000 cars. Nissan expects their Japanese plant to eventually output 50,000 cars once enough batteries are available. Once plants go online in the US and Europe, Nissan will be able to produce 200,000 electric cars annually by 2012.
Since Nissan is already potentially overselling its LEAF capacity, the company is planning to begin pruning interested parties to manage expectations.
“We’ll even be advising some people not to buy,” said Andy Palmer, head of Nissan’s EV division. “We don’t want them to be driving 300 miles a day. It’s all about managing expectations. Electric cars aren’t for everyone.”
Maybe the LEAF isn’t for everyone, but the Volt certainly could be.
Source (Economic Times) and (Automotive News)





