Chevy Volt v. Better Place - Which is a niche?
Neither, both?Just came across some ramblings on Autobloggreen regarding Shai Agassi's comments calling the Chevy Volt a niche, which seemed to disturb the author.
Instead of buying a $40,000 car, Project Better Place would have drivers pay to access a network of charging spots and conveniently located battery exchange stations powered by renewable energy, plus a mileage fee. This, according to Project Better Place, would make cars much more affordable, even free in some markets.
Before getting too hot and bothered, both the Volt and Project Better Place need to prove their technology. Still, study after study after study demonstrates that consumers are primarily focused on up front costs when buying a new vehicle. Thus, it's obvious that Project Better Place's cell phone business model has potential.
Nonetheless, it will take decades to develop the infrastructure required for Project Better Place to work in America. One day, however, such a model could make range extended electric vehicles and plug-in hybrids nothing but niches. Of course, one day both vehicles might actually be sold in the real world.....one day. Until then, anything is possible.
Labels: Chevy Volt electric vehicle concept, project better place



2 Comments:
I don't think it would take decades.
Trust me...if they had to build a crude oil infrastructure in the middle of Africa somewhere, they'd do it under a year flat.
These are all excuses to keep the world on a petroleum diet...they simply can't give up their cocaine.
The business model hasn't been proven. Forget the business model. There is yet not one lithium supplier than can cost-effectively mass-produce enough batteries for 100,000 EVs. Getting enough batteries on the road to stop calling all EVs combined anything but a niche is probably a decade away.
Right now Project Better Place is working on only a pilot project, not even a full scale roll out. It will be several years, maybe even a decade before Better Place can prove the viability of such a program in Israel or Denmark. Carrying that model to the US will require far more investment than small countries.
Perhaps in a decade it could be rolled out in a few large cities, but it won't be rolled out all every America. That gives PHEVs plenty of time.
Thus, it will be decades before Project Better place could prove the Volt or a plug-in Prius nothing but a niche.
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