GM’s Electric Car to Hit Southland in November
Saturn Corp. will begin marketing General Motors Corp.’s cutting-edge electric vehicle in Southern California and Arizona in early November, and executives expect initial consumer demand to outstrip supply.
Already Saturn has received more than 1,000 inquiries from consumers interested in purchasing the GM EV1, the first all-new electric vehicle to be marketed in the United States since the early 1900s, company executives said Tuesday. About 300 of those are considered firm prospects.
“We may have a situation where we will have more demand than supply,” Joe Kennedy, vice president of sales, service and marketing for Saturn, said in a news briefing at GM’s Milford Proving Grounds.
GM is already producing the teardrop-shaped, two-seat EV1 at the Lansing Craft Centre. Executives would not say how many vehicles have been built, or provide a yearly sales projection for the sporty 1997 model.
When the sleek, zippy EV1 goes on sale, GM will become the first auto maker to offer an electric vehicle built from the ground up to consumers in modern times. Honda will introduce a new four-seat electric vehicle next year with a more advanced battery. Ford, Chrysler, Nissan and Toyota are all developing electric vehicles converted from gas-powered chassis, but these models will only be sold to commercial fleets initially.
The arrival of GM’s electric vehicles comes just seven months after California regulators postponed a mandate to require introduction of zero-emission cars in 1998. Saying the battery technology had not yet advanced enough, the state pushed the deadline back to 2003, when 10% of new auto sales are required to be zero-emission. At the same time, the auto makers committed to voluntarily introducing electric vehicle prototypes in the next few years.
The EV1, an advanced production version of the Impact concept car unveiled at the L.A. Auto Show in 1990, will carry a sticker price of about $35,000. But with federal, state and local incentives offered to early buyers, the transaction price will be closer to $27,500.
Saturn will not initially sell the vehicles, but will offer them under a three-year lease plan. This is meant to eliminate worry by consumers that the car’s expensive lead-acid battery pack could fail and need replacing, as well as concerns about the car’s resale value.
“Our philosophy is to provide customers not only a hassle-free and haggle-free experience, but worry-free as well,” Kennedy said.
Buyers will also be required to lease a home-charging unit and pay for its installation. Consumers will be able to lease the car and charger for roughly $450 a month.
“It will come out to about what it costs to lease a $30,000 car with an internal combustion engine,” said Robert Purcell, executive director of GM Electric Vehicles.
GM has spent about $350 million to bring the EV1 to market. Purcell said GM will not make money on this first-generation vehicle, but believes the investment in advanced technology will help it pioneer an alternative-fuel industry and lead to profit in future electric or hybrid cars and trucks.
The EV1 is the first vehicle to wear a GM badge in the 88-year history of the world’s largest auto maker. It will be sold at 26 Saturn dealerships in the Los Angeles, San Diego, Phoenix and Tucson metropolitan areas.
The vehicle is a technological marvel, with features such as a light, all-aluminum space frame, low-rolling-resistance tires and the most aerodynamic design of any car now on the road.
The EVI is also seen as a manufacturing test bed for lean, flexible production of low-volume vehicles. The company is using just 54 hourly workers and 17 supervisors to produce the EV1 on a low-tech assembly line that uses some advanced processes but just one robot.
GM hopes to make the vehicle’s marketing as unique as its production and internal parts. Saturn was chosen to sell the car because of its success at creating brand identity and focusing on customer satisfaction.
The Saturn retailers will train all their sales consultants on the EV1’s features. They will also jointly set up a marketing service to hire and train 14 EV1 specialists, who will work at several dealerships.
The specialists will walk customers through the buying process. They will make sure that buyers know all the vehicle’s features as well as its shortcomings, such as its 70-to-90-mile range.
Customers are already lining up. Dan White, a Moreno Valley resident who works for a Ford dealer in Costa Mesa, said he plans to buy an EV1 because of his concern about pollution in Southern California. White has already contacted his electric company to put a charger in his garage.
