Inner city street parking a problem for plug-in hybrids

The market for plug-in hybrids and EVs is set to take off, but one consumer group will find itself excluded from ownership for some time -- inner city dwellers with no off-street parking.

The issue came to light in a media and consumer update from GM CEO Fritz Henderson who said as yet the problem hasn't been addressed satisfactorily. "Frankly, I don't know. There's some potential for charging stations to get broader application [Ed: whatever that means]. There will be strong growth in rapid charging stations and other innovations, but right now, it's a problem. Even with rapid charge, we're still looking at wait times longer than acceptable for consumers."

Quizzed about pricing on the Volt, Henderson was not committing to figures 12 to 18 months out from launch. But with the car expected to reach the market with a price tag in excess of US$40,000, it was the subject of plenty of questioning from live and webcast audiences.

Yes, it will cost more than one might expect of an affordable family vehicle, he said. "But it's a gen one vehicle, so the technology battery and the motor is priced high. Like all gen one vehicles, the objective is to get to gen two. This is the one where you learn things you end up building into those next generations. And the cost of that is high."

There are, he added, a couple of important offsets. First is that low, low charging cost for most commuters using the car most days -- GM estimates an off-peak charge good for more than 60 km of zero-emissions commuting at as little as 40 cents (in US dollars).

"We're very encouraged by its affordability at the running costs end." He also raised the federal $7500 tax credit available for the buyers of such vehicles. "So the real-world price will be less than the sticker value of the car."

Asked about the prospect of further buyer subsidies from GM's end, Henderson said the company has no such plans at present. But the company is working on marketing strategies designed to help pull the Volt into affordability. "We need the volume."

On that front, the Volt (pictured here in pre-production assembly) is something of a gamble in a market where traditional fuel prices remain low. That may be, he says "but I do think our fundamental premise of planning for increases in gas prices is right, predicated on robust and increasing demand for fuel in developing nations. The underlying value and price of oil is going to go up."

It helps, he added, that GM's own research suggests consumers believe gas prices will rise. "While they believe that, demand will rise for fuel efficient vehicles."