Pre-boomers don’t want to see the USA in their Chevy Volt
There’s been a lot of press surrounding GM’s introduction of the new electric car, the Volt. Going for over $41,000, this car is designed to create interest in “green” vehicles made in America by an American company. The administration and the government owned auto maker hail this a first step in reducing our dependence on fossil fuel, but critics are doubtful and consumers don’t seem to be ready to buy green cars, particularly those 65+.
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A recent Rasmussen poll showed all but 16% of adults followed news stories about electric cars. Of the total sample, 37% said they were likely to buy one in the next decade, but among New Seniors that number fell to only 21%. And 48% of the people surveyed were more likely to buy an electric car because of high gas prices than the 29% who would do so because it’s good for the environment. Asked if they would pay an additional $15,000 to buy an electric car, 81% said no and for New Seniors that number grew to nearly 9 out of 10 saying they were not likely to spend the extra money.
Regarding the government involvement in electric cars, 48 % of those polled believed tax credits should be provided to those making cars using alternative fuel, but less than a third of those 65+ felt that way. On subsidizing electric car research, 44% said yes, but only 26% of New Seniors agreed. When it came to receiving a tax credit of $7,500 for buying an electric car, 65% of adults said this would not cause them to purchase and 78% of those 65 and older said no. In fact, 55% of the sample did not think the government should provide a tax break to buyers, which rose to 63% with New Seniors.
Generally, consumers are willing to let the marketplace determine what cars should be made. America is a buying country and knows what it wants. Big cars were fine when gas was cheap, but the first oil crisis changed that and Detroit was slow to react, giving the smaller, more efficient imports the opportunity to crack the market. The SUV craze stopped a couple of years ago when gas prices soared. This sent the big three into a tail spin. While electric cars will carve out a market, the share will not be a big nor develop as fast as Detroit and Washington would like.
This brings us back to the Volt. The name is strong, but the design has been morphed into that of a car selling for about have the price. The comfort factor has been compromised in order to accommodate the battery, and the vehicle only seats four. It will only go 40 miles on a charge before having to switch to gas – not enough for many people to travel to and from work or run around town doing errands. Using standard household power, it requires a 12 to 14 hour charge. Owners will have to get home early at night so the car will be ready in the morning. Otherwise, it will be necessary to switch to the gas mode. This could be expensive, because the Volt uses only premium gasoline.
There are people who will be enthusiastic about this car, but it may be concentrated among the fringe few. One thing is obvious, as the numbers above indicate, the New Seniors are not likely to be Volt buyers.
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