Leaf Moves Beyond Early Adopters To The Cost Conscious

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Leaf Moves Beyond Early Adopters To The Cost Conscious

[IMG]http://b-i.forbesimg.com/peterdetwiler/ ... ges-2.jpeg[/IMG]

"Here’s when you know when a ‘green’ product is moving into the mainstream: when the manufacturers stop talking about how virtuous you are for buying it, and appeal to your wallet instead. Nissan and its Leaf – an electric vehicle which has an 84-mile range per charge – is about to attempt this transition.

When the Leaf was first introduced in 2010, CEO Carlos Ghosn was all about saving the planet and the race to the zero emissions vehicle. At that time, Nissan projected US sales of 20,000 in both 2011 and 2012. Things didn’t quite work out that way, and sales sputtered. In 2011, only 9,674 units were sold, and in 2012 9,819 cars rolled off the lot. In response to these lackluster numbers, Nissan aggressively slashed prices in January 2013 by $6,400, so that the base model is now $28,800, (that’s before the $7,500 Federal tax incentive and any other local tax breaks).

That cost cutting appears to have done the trick, at least for the moment. Sales jumped from around 650 units in the months of January and February to an all time high in March (2236) followed by a strong April (1937 cars sold). For comparison’s sake, the Chevy Volt – priced at MSRP $39,995, sold 1140 vehicles in January, 1626 in February 1478 in March, and 1,306 in April. General Motors CEO Dan Akerson announced a page out of Nissan’s book, indicating a price reduction on the next generation Volt of between $7,000 and $10,000 within the next 18 months.

Moving the Leaf assembly line to Tennessee may have helped Nissan to cut production costs, but there is some question as to whether the car can be a moneymaker for Nissan at these prices. Be that as it may, the Leaf just got a whole lot more economical, and Nissan is now focusing on emphasizing value. Add in a $199 per-month leasing offer, and suddenly the equation changes pretty significantly, putting the car within reach of many drivers. Leaf Sales and Marketing Director Eric Gottfried was recently quoted as saying “We’re focusing on the value and economic equation of having an EV — what impact that would have on your household budget…If the car is affordable on a monthly basis and it’s saving you a significant amount on what would be gas expense, that’s a whole different mindset.”

It’s a whole different mindset, indeed. And – assuming Nissan can sustainably turn out the cars at a profit, and that people can get past the 84 mile per charge limitation – it’s a mindset that suggests that this product may be past the novelty stage and has finally begun to arrive. Should that be the case, the electric utilities may need to prepare for a growing pile of Leaves…"

Em: http://www.forbes.com/sites/peterdetwil ... conscious/