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A Leaf or a Volt: The Competition is Afoot

<p>With the recent announcement of the new Nissan Leaf all-electric vehicle aiming for a release sooner -- and at a lower price -- than the Chevy Volt, it looks like the battle between Asia and America for EV marketshare is heating up.</p>

Of course, the original contest "concerns a hare and a slow-moving tortoise. The tortoise challenged the hare to a race. The hare soon left the tortoise far behind and, confident of winning, he decided to take a nap midway through the course. When he awoke, however, he found that his competitor, crawling slowly but steadily, had already won the race." And thus we have the Leaf, the new "affordable," zero-emission, four-door, all-electric city-car from Nissan. Keyword: affordable.
 
Nissan has been criticized for being slow to enter the green market -- they have only one hybrid vehicle in their fleet. Impressions to the contrary, Nissan has been hard at work "to leapfrog 'transitional' powertrain solutions like gas-electric hybrids in favor of genuine zero-emissions vehicles." The Leaf promises to be available in the U.S. next year at a price somewhere between $25,000 and $30,000 -- considerably less than the Chevy Volt. It will charge in eight hours at 220 volts providing a 100-mile range -- plenty for an urban or suburban errand runner for a family of five. The car is already being tested with real customers in Japan. Combine this with smart-grid technology to charge at off-peak hours, and you have an economical and green personal transportation solution.

The Nissan Leaf
Nissan Leaf


So where is our Chevy Volt? Hello?

For the latest, we have this from AutoBlogGreen:

It's sort of common wisdom that when the first Chevrolet Volt models become available in General Motors showrooms (or on eBay) in late 2010, they'll be priced at around $40,000. GM hasn't made any official statement declaring this specific price -- and for a while there was speculation on which way the ticker would go; would it be $30,000? $35,000? -- but for now, $43,000 is the expected average transaction price, and GM will lose money on each Volt at that rate, according to a new story in AdAge.

Well, this is not exactly the way to deliver lots of affordable EVs to a mass market.

Another story in The New York Times suggests that the extended-range Chevy Volt "will achieve a fuel rating of 230 miles a gallon in city driving." That's in part because the car has a back-up gas engine. "Nissan, however, announced last week that its all-electric vehicle, the Leaf, which comes out in late 2010, would get 367 mpg, using the same E.P.A. standards."

The Chevy Volt
Chevy Volt


While GM is attempting to give us an American full-sized vehicle with an electric motor, the Japanese are pursuing a different strategy that produces a lower price and better mileage.

The Leaf is only one aspect of a national movement in Japan to make moving around in cars more earth-friendly. In addition to Nissan, Mitsubishi and Fuji Heavy Industries are in advance stages of introducing their own electric vehicles, the iMiEV and the R1e respectively. Both of these cars are eerily reminiscent of GM's EV1, dropped in 1999.

In anticipation of the need for EV pit stops, some shopping malls are preparing charging stations for their eco-minded customers, "The biggest name in shopping malls in Japan is set to install electric vehicle charging spots in its parking lots. ... Starting with the Lakeland mall currently under construction in Koshigaya, Saitama Prefecture, Aeon will add to its list of environmental programs by giving EV drivers the opportunity to juice up while they are doing their shopping." These charging stations are likely to provide power at greater than 220 volts, decreasing the charge time you might otherwise get at home.

The Japanese government is already working with local utilities to provide advanced cogeneration systems that convert natural gas into electrical energy that can be used to power the house and to charge cars at home at night when rates are lower. This system combines the latest advances in smart-grid technology into a realistic solution that is already installed in thousands of Japanese homes. Add geothermal, tidal and solar power, all plentiful in Japan, and you have the makings of a renewable supply system for EVs.

Meanwhile, Green Car Congress has reported that, "Ten of China's top automakers are joining in a research and development working group (T10 Electric Vehicles) for electric vehicle powertrains and components." The goal of this joint venture is to reduce R&D costs among the various manufacturers, something GM is hefting mostly on its own.

So, while the Chevy Volt was fast out of the PR blocks, it now appears that the steady persistence of the Japanese (and now the Chinese) to produce electric vehicle solutions complete with charging concepts is winning the race to a global market.

Richard Seireeni is president of The Brand Architect Group, Los Angeles, a strategic brand consultancy with affiliated offices in Tokyo and Shanghai. Seireeni is the author of "The Gort Cloud" that describes the invisible network that is powering today's most successful green brands. Follow him on Twitter @Seireeni.

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