By Huw Evans
It seems Australia is set to be the next major battleground for EV sales supremacy. General Motors is on the verge of launching it’s localized Volt (appropriately branded a Holden), while Nissan has already announced the availability of the Leaf.
It’s no secret that cars tend to cost quite a lot in Australia and both the Volt and Leaf will boast fairly hefty price tags. Nissan has said its pure EV will start at $51,500 AUD ($52,525 U.S.), while the Volt, of which official MSRPs have yet to be released, is estimated to be around $60,000 ($61,140) or more.
Now while that might seem a significant difference compared with likes of the Leaf, or even the Mitsubishi i-MiEV (priced at $48,000 AUD); for Australian customers, the Volt’s onboard 1.4-liter extended range generator is likely to be a significant factor when it comes to purchase consideration, especially since outside major cities such as Sydney, Perth, Adelaide and Brisbane, much of Australia is sparsely populated; many motorists often traveling sizeable distances to get from one place to another.
Furthermore, the notion of a carbon tax, which customers will pay so they can charge electric vehicles, adds to the notion that for a good many Australians, pure EVs aren’t likely to make a great deal of sense, despite Nissan brass stating there’s a market for cars like the Leaf.
Getting back to the Volt, the fact that it’s also being badged a Holden, the auto brand that for many has come to symbolize rugged, independent Australian motoring over the last 60 years (though Ford fans might beg to differ), might also help car’s cause.
What’s interesting about EVs in Australia is that so far unlike the U.S., there haven’t been any significant incentives to move them off dealer lots; no rebates or special discounts, so consumers will likely really have to want one to drive it off the lot.
Originally the Australian government had planned to introduce what it called “A Cleaner Car Rebate Scheme,” in 2011. However, following the disastrous floods in Brisbane and much of Queensland, allocated funds set aside for the scheme were instead diverted to aid in the clean up and rebuild and the CCRS was axed. So far, nothing has been introduced to replace it.
One Down Under news source recently reported that the Volt’s range extending gas generator “provides the flexibility we car-wedded Australian’s like. Even the Nullarbor [plain] would be doable,” said the Western Australian’s Stephen Williams.
“If you instead opted for a Leaf or an I-MiEV, you might need to own an additional vehicle,” Williams said. “That decision would have cost, parking space and green penalties. So you could say the Volt’s two cars in one.”
This entry was posted on Thursday, June 21st, 2012 at 5:55 am and is filed under General. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.
+8
Jun 21st, 2012 (6:08 am)The Volt is two cars in one! I like that saying.
Jun 21st, 2012 (7:03 am)It kills me the Volt is going to cost so much. i have been a loyal follower of the volt for a good number of years – probably over 4 years now. 60k+ is just so much for a car that is essentially a compact.
This is the first I have heard of the recent floods in Brisbane being the reason there is no rebates at this time on offer.
I would suspect the carbon tax which will generate something like 17 Billion in its first year would have some allocation to a rebate scheme, but NO… our government has decided to give half that money to the average citizens to help offset costs going up because of the tax – there by nullifying a good portion of any possible benefit carbon tax will have whilst at the same time making industry uncompetitive internationally – I still don’t understand were the second half if going. I’m for a carbon tax (provided it was a bit more predictable in nature), but for heaven’s sake make it go towards helping renewables compete!
if there was rebate to negate the import tax of simply lessen the cost by the same amount as can be seen in the US, I already have permission from my misses to get one!
+1
Jun 21st, 2012 (7:06 am)The carbon tax will be an issue but as I live in Australia there has been government incentives and there still is for installing Solar panels, so there is many more solar panels around than there used to be and therefore those homes will be able to offset or avoid if there is enough solar generation to prevent usage of any grid electricity.
I know of at least one home that has about a 30kW system using over 100 panels with 6 inverters to achieve it and I would imagine a VERY large roof.
If you are lucky enough to have solar panels then there would be a lot less carbon tax. The head of a major ISP in Australia owns a Roadster and I understand has a deposit down for a Model S as well which he will charge off his solar panels which from memory is about a 10kW system.
The biggest killer of EV’s downunder will however be the cost, not totally sure of the reasons behind why, almost as though any non-locally manufactured vehicles are penalised heavily.
I would love a Volt or Ampera but the cost will make it unattainable for now, not at least until the 2nd hand market for them starts. Hopefully fleet customers consider them so it gets the experience of driving an EV out to the broader community, as I know I would love to drive a EV pool car if my employer had them in the fleet.
The other option would be to privately import from the UK being a large RHD market but it is illegal from my understanding.
Jun 21st, 2012 (7:53 am)What price for a Volt in Oz?
Given that the US price is $40-45k depending on options, the Holden Volt being the only right side drive Volt, Australian Design Rule compliance, a big ocean to cross for the supply chain, inventory that will have to be held in Australia for a long time compared with other markets, and the costs of getting ready a sales, distribution, training, servicing and emergency response capability, plus 10% sales tax, plus registration, plus compulsory insurance, a drive away price of around $60k might be understandable.
Perhaps we are lucky to have the opportunity to buy the Volt. Otherwise the customer value proposition is unclear. The press release from Holden pitches a sustainability value proposition/appeal. That approach is not likely to sell many Volts. Prius, Insight, and Camry Hybrid sales are particularly poor in Australia, and even worse when you remove those sold to goverment agencies owing to incentives.
+2
Jun 21st, 2012 (8:37 am)“the Volt’s onboard 1.4-liter extended range generator is likely to be a significant factor when it comes to purchase consideration, especially since outside major cities such as Sydney, Perth, Adelaide and Brisbane, much of Australia is sparsely populated; many motorists often traveling sizeable distances to get from one place to another”
———-
Not to forget Australia’s heat. I wonder if the Leafs will have the same problems they are having here in the warm states? Without a liquid cooled battery, you’re in trouble.
+4
Jun 21st, 2012 (8:44 am)I asked before and I am asking again: Why doesn’t GM produce Holden Volts in Australia? This will reduce the retail price for local buyers, and allow GM to reach the Pacific and southern Asia markets with less shipping costs.
Besides, I like the lion badge!
Raymond
+1
Jun 21st, 2012 (9:05 am)X
Raymond, if you have a rich uncle, tell him to go to his bank and pull out a billion to give to GM to eliminate the risk of building Volts Downunder. I’m sure GM would jump at the chance.
Otherwise mws1047 Says
+1
Jun 21st, 2012 (9:10 am)Interesting input.
Just curious,, do the coal mining companies that ship coal off shore have to pay a carbon tax?? I know that Australia ships mega tons of coal to counties such as China. Also, I don’t understand why Nuclear power is illegal in Australia but Australia is one of the larger suppliers of Uranium.
+1
Jun 21st, 2012 (9:34 am)Raymondjram,
http://www.goauto.com.au/mellor/mellor.nsf/story2/854C86E82DD12050CA257A1E002A0F8D
[Ed: in respect of the Cruze] On the question of local production of the wagon, Mr Devereux [Ed: MD GM Holden] said: “We are not going to attempt to do three of those body styles at the plant.
“Until you figure out what the volumes are going to be, it doesn’t make sense to try to localise it at this point in time.”
If the Elizabeth South Australia plant is not to produce Wagon/Estate variants of the Cruze, which on face value seems sensible given how very popular the Commodore Sportwagon is (I have one), a low volume vehicle like the Volt for local production does not make sense without a more strategic factor being considered.
That Holden jumped very early in committing to the Volt might have had something to do with those enthusiatic days in 2009 with a new federal government committed to a Green Car Innovation fund being part of a $6b assistance program and a collective rush for change planned from Copenhagen Dec 2009. Holden also recieved almost $150m assistance to assemble the Cruze as part of this Green Car program. Ford received an amount to make the Falcon more fuel efficient/compliant and Toyota got funding for the Camry Hybrid assembly that would have otherwise been made more sense for import from Thailand.
Holden recently received commitments for $275m assistance in return for Holden committing to investing more than $1 billion in its Australian operations and make two next generation cars. US buyers end up with the Chev SS as a result.
In the light of you scratch my back and I’ll scratch yours, one has to wonder what the business case is for the Volt to be sold in Australia (Australia is a very different market to the US motivations to produce and buy the Volt). For the Volt to be be assembled at the Elizabeth plant is an even greater stretch of the imagination.
However, we have a Federal Government keen on advancing the sustainability cause and needs icons to rally the cause. Minister Combet has publically opined a desire to have the Volt assembled in Australia. We have a Federal election at the end of next year, where the current government is likely to loose to a coalition less keen on supporting the Australian automotive industry.
A lot has to change for the Volt to be assembled in Australia.
Jun 21st, 2012 (9:55 am)George S. Bower,
Coal exports are exempted from the Carbon Tax. However fugitive emissions from coal mines are taxed, and thankfully so given most of it is methane. Transport fuel does not have a carbon tax, although it already has a significant tax applied compared with US tax regimes (about $0.33/ltr or thereabouts).
So coal to fuel BEV/EREVs is subjected to a carbon tax, and we in Victoria are said to have the most CO2 immissive power stations in the world owing to our use of brown coal (30b tons in reserves), whereas ICE fuel (petrol) has no additional tax.
We have a carbon tax as our part in being a good world citizen, and yet we export extraordinary amounts of coking and thermal coal from NSW and Queensland. The carbon tax is a joke. Hypocracy flourishes.
Jun 21st, 2012 (10:41 am)And to Huw’s cover story we might add that the dealer sales people have been receiving training this week.
We look forward to the dialogue with dealers improving next week.
+8
Jun 21st, 2012 (10:48 am)OT but GREAT breaking news for Volt/Ampera owners (or hopefuls) in Australia, Europe, China, USA or anywhere else:
The Volt long-term test report (1 year, 26,861 mi) in the August 2012 issue of Motor Trend says:
“…the real headline here is that nothing ever went wrong with the car. Zip. Zero. It was breathtakingly reliable, given that the Volt is (and try arguing this with me) the biggest quantum jump in automotive technology in decades…”*
* http://www.motortrend.com/roadtests/oneyear/alternative/1208_2011_chevrolet_volt_verdict/
Jun 21st, 2012 (11:04 am)Thanks for the link. Interesting read. I’ll resend.
Here in Montreal we broke a record high yesterday. Around 91F and we might do the same today. With humidity factor, they calculated we were around 43C or 109F. It’s quite early in the season for such temperatures and we are north of Vermont. How hot must it be in Texas I wonder.
Jun 21st, 2012 (11:11 am)George S. Bower,
yep, we supply lots of uranium and yet we have no nuclear power sations as of yet. there is strong debate for them, but the public is simply not convinced they are safe yet.
Yep, again to exporting of coal. no carbon tax there, as we are taxing the production of things that use power. So China can do what they want with the coal (as they currently are of course exempt from a local carbon tax), but we will be penalised for using it. This impacts on the competitive nature of our businesses – such as steel production.
+2
Jun 21st, 2012 (11:16 am)mws1047,
and xiaowei1
Thx for the input!
+1
Jun 21st, 2012 (11:59 am)You also have the worlds largest known supply of Thorium. A Thorium cycle is inherently safer than one based on transuranics. While there have been experiments in Thorium powered reactors (mostly successful) in the US, it’s clear that our government has no interest whatever in allowing a commercial design to be engineered, and no intention of ever licensing one.
The current world leader in Thorium research is India, which has one of the lowest percentages of world Thorium reserves; but you see, they have ZERO Uranium.
Perhaps, if the USA will do nothing, Australia will; building on the American and Indian research. If so, you will lead the way to a new, relatively safe and abundant source of clean energy; and we will be forced to buy the technology from you (even though we have the world’s second largest known supply of Thorium. Sigh.).
http://www.thorium.tv/en/thorium_reactor/thorium_reactor_1.php
BTW, I had no idea you were Australian.
-11
Jun 21st, 2012 (12:19 pm)(click to show comment)
Jun 21st, 2012 (3:00 pm)#15
Absolutely. +1
It’s really cool to see you guys participating here and educational as well.
Thanks again.
Jun 21st, 2012 (3:03 pm)#12
Outstanding! +1
+2
Jun 21st, 2012 (7:25 pm)pjkPA,
Owing to a free trade agreement between Australia and the US, there are no trade restrictions/tarrifs as barriers to US automotive products being sold in Australia.
http://www.dfat.gov.au/fta/ausfta/outcomes/12_automotive.html
The price difference (corrected for exchange rates) relates a lot to Australia being a very small market (cost overheads per car and short production runs for a compliant car)(Total car and light truck sales only about 1m per yr), and by law the advertised price must be a drive away price that includes all charges.
From this side of the ditch it’s both amuzing and brings pain when people comment that a $40k Volt is expensive, let alone one that can be bought in the low 30s. If only…
In recent historically there are few success stories of US made cars being sold in Australia. US made SUVs of Japanese/German brands are the best examples, but the track record there is mixed as well. US made sedans from GM, Ford, and Chrysler rarely succeed in volume in Australia. Ford Mustang and Taurus sold in very few numbers.
A practical barrier to overcome is that the US car needs to be an international design in architecture (right side drive vs left side) and also in styling.
Jun 22nd, 2012 (12:07 am)Better than “more car than electric”… that’s for sure!
Jun 22nd, 2012 (3:07 am)WOW!
Australians must be rich if there cars cost that much who knows?
$48,000-$60,000 price range just way too much for the average American.
This is why we need to lower the price on our alternative vehicles even if the Volt is priced at $40,000 as it’s grand total will be around $50,000
Why not get it around $20,000-$25,000 in price range instead.
I know! I know! It’s diffidently worth it because you’ll be saving money from the pump and helping the environment.
But still if prices were lowered like that sales would go through the roof but on the positive side I’m seeing them more commonly on the highway and even in my own neighborhood but still a lower price range in my opinion is highly recommended who agrees!
Last but not least.
Way to go Australia!
Don’t give up you can be like us when when it comes to EV’S, PHEV’S, and EREV’S.
+1
Jun 22nd, 2012 (5:24 am)I would like to buy a Volt, but am really disappointed at the Australian price.
It’s mostly BS that it cost so much to modify the Car for Australia…
Vauxhall / Ampera’s for UK are RHD, what in the industry calls “jewlery” you decorate the car with has minimal cost impact.
Heck if those Holden badges cost $18,000 AUD per set for the car then I’m extremely upset & disappointed.
After all I’ve known the car since concept phase and it just looks crap with the Holden badges on it.
If i was to buy one – Chevy parts will be on their way to remove this badge engineered BS.
The other issue is the Holden Service network, I’d rank it pretty low, Ford Australia’s service network being the absolute worst – don’t get me started on Ford warranty.
So Holden are trying to certify only limited certain amount of dealers to handle Volts, but I wonder if you will still get that untrained apprentice – which you pay the dealership top dollar per hour to screw up even that eventual oil change on your 60K Volt? GM should look at either Europeon brands or Lexus as to how to set up an overpriced exclusive brand service department.
Don’t know how the GM service techs rate in the US, but locally I find GM produces a very good quality product, but the dealerships either cause or make minor problems worse.
Hence unless it’s something major my GM cars never go back for service, but then again I do have the ability and equipment to do so without them which results in increadible reliability at very cheap maintenenace using genuine parts.
A good story is my local GM dealer spare parts counter was the best most pleasant spare parts counter along with excellent customer service out of all the brands. But they cut out one person on Saturdays – Sad as they were incredible fantastic in every way.
Aussie green car Incentive – we get no envirometal incentive – i had written to the minister concerned and received some crap “letter” that the car is not built in Australia so there will be no compensation.
So The current Australian goverments commitment to lowering carbon is a joke, people at work now think it’s just another tax grab – doing absolutely nothing for the enviroment, while more manufacturing jobs transfer out of Australia to countries with unlimited pollution.
Lucky I’ve installed solar panels so at least squeezed our Aussie goverment for Chinese solar panels and a German made inverter – BP used to make solar panels here, so much for the green jobs? local distributor and installer LOL!
Once the Volt is at our near local Dealership I’ll see the real Volt 13Km away – certified Volt dealer further away from my current local x2. However the 60K sticker is making me hesitate as you could buy x2 Cruzes or Commodores nearly for that price.
Volt is truely an amazing advanced technology car and it has dissapointed me that in the US some people a) made it a political football. b) sales are low considering it’s truely an amazing car which some us people just don’t “get” / understand.
Eurpeons understand how important the Volt / Ampera is along with the Chinese who would love to have the technology given to them on a platter. Americans & Australians where are we as to understanding what the Volt really means for us?
As per usual GM Holden did not listen to their customers to market this exclusively as a Chevy, but that’s the only department of GM locally that’s pretty “thick” / dumb. so they they are left with selling an exclusive car at K-mart holden dealerships, I wonder how that will work out ?
Wonder if later the price will go down in down under ….. but here we get ripped on most car prices so I’m not surprised.
Nice reading the forum all these years.
Cheers,
Martin
Jun 22nd, 2012 (6:29 pm)I thought there was one nuclear reactor in Australia, near Sydney.
http://en.m.wikipedia.org/wiki/High_Flux_Australian_Reactor
Jun 23rd, 2012 (5:21 pm)Typo, first paragraph.
It’s = it is. You meant its.