Reason Foundation: 2024 Update on the Decline of Electric Vehicles

Robert Poole's article titled The (Not So?) Surprising Decline of Electric Vehicles gives a useful update on the reduction of EV sales and manufacturing in the US.  All the text below is from Robert's newsletter.

Recent headlines in business media report trouble with the electric vehicle market. Last month, (all-EV) Tesla reported a 45% profit decrease in the most recent quarter, due to lower sales and the lower prices it’s recently been charging due to increased EV competition. GM announced delays in two planned EV factories—one for electric Buicks and the other for electric trucks. And Ford CEO Jim Farley announced that the company would focus more on smaller, less-expensive EVs, since its large ones are selling poorly. Ford’s EV unit had a $1.1 billion loss for the second quarter of this year.

What accounts for EVs’ declining popularity? A survey of electric vehicle owners by J.D. Power found that their battery electric vehicles (BEVs) and plug-in hybrids went back to the dealer for repairs at three times the rate of gasoline-fueled cars. And despite early claims that EVs would be low-maintenance due to fewer moving parts, etc., repairs and maintenance average more labor hours (possibly because mechanics are still getting familiar with them).

Kelly Blue Book and Manheim found that the residual value of BEVs after two years is significantly lower than that of gasoline cars, while hybrids held slightly more value than gas cars after two years.

Finally, when an EV gets into a collision, it is significantly more likely to be declared a total loss, rather than being repaired.

My engineer friend in Sweden, Michael Sena, editor of The Dispatcher, reported in the Summer 2024 issue the results of a survey of EV buyers by McKinsey & Company’s Center for the Future of Mobility, released June 12. They found that 46% of BEV purchasers say they will go back to an internal combustion vehicle for their next purchase. Their main concerns were about charging, the high cost of ownership, and the complexity of long-distance travel. Respondents were also upset that the range of the BEVs they purchased is considerably less than what it says on the sticker. They were also surprised by poor performance in very cold and very hot weather. Sena also reports the result of a different survey of residual value, by Cox Automotive, whose results paralleled those reported above—a faster decline than for internal combustion vehicles.

These may be short-term problems, due to the technology being new and charging networks still being rudimentary. But these findings certainly put down a caution flag for an expected total EV replacement within the next several decades.

Consumer Reports Can Be Wrong!

CONSUMER REPORTS: Can the Grid Handle EVs? Yes! 

They should really study this series: The EV transition at scale poses daunting challenges

 Dear Chris,

The answer in your blog is incorrect. It is predicated on:

"...Americans drive approximately 2.9 trillion miles a year,..." and "...The average efficiency of all 20 comes to 3.1 miles per kilowatt hour. "

Totals and averages can be grossly misleading and this is the case here.

Total power generation capacity may match total EV KWh demand over the course of a year. But this totally ignores diurnal patterns and Peak Demand periods! The grid often has a hard time providing enough power for the usual demands plus a/c on hot and humid days.

Some locations have spare capacity, some are nearly maxed out (California, Hawaii, many others), and the US grid is far from being interconnected to cover demand deficits.

This question can be answered with reasonable confidence only at the local/regional level based on historical patterns of daily KWh consumption, along with specific forecasts of EV in traffic by type... car, SUV, pickup, delivery truck, long distance truck.

-- 
Panos D. Prevedouros, PhD
Reno, Nevada
Past Chairman and Professor Emeritus
Civil and Environmental Engineering
University of Hawaii at Mānoa

How Clean Is Your Electric Vehicle?

The correct answer is... it depends on the way that power is produced. For example, EVs are not very clean in Honolulu (top graph); hybrids do better. But Reno (bottom graph) has natural gas, geothermal and solar power production, so EVs there run much cleaner. Find out about EV pollution for your area by entering your zip code at the website of the Union of Concerned Scientists.

Behaviour of Lithium-Ion Batteries in Electric Vehicles

Hot off the press and pleased to be coauthor of Chapter 5 of the newest book on lithium batteries for transportation. I co-authored this article with my 2011 PhD student Dr. Lambrosw Mitropoulos.

Our chapter is titled Conventional, Battery-Powered, and Other Alternative Fuel Vehicles: Sustainability Assessment.

ABSTRACT:   The substantial impacts of transportation on environment, society, and economy strongly urge the incorporation of sustainability into transportation planning. Major developments that enhance transportation sustainability include alternative fuels, electric drive and other novel technologies for vehicle propulsion. This chapter presents a sustainability framework that enables the assessment of transportation vehicle characteristics. Identified indicators are grouped into five sustainability dimensions (environment, technology, energy, economy, and users). The method joins life cycle impacts and a set of quantified indicators to assess the sustainability performance of seven popular light-duty vehicles and two types of transit buses. The hybrid diesel electric bus received the highest sustainability index and the internal combustion engine vehicle the lowest. Fuel cell and hybrid electric vehicles were found to have the highest sustainability index among all passenger vehicles. The sustainability performance of some new technologies currently suffers from limitations in engine and battery performance, comfort and convenience, and availability of charging stations.

250 Miles with a Made in the USA Supercar, the Tesla P85D

The surprising acceleration of the Tesla S prompted Jay Leno to race his 700 HP Cobra two-seater against a grandmother driving a Tesla P85D in the opening segment of a recent episode of Jay Leno’s Garage shown on NBC-SN.  With minimal effort, the grandma handed Jay’s Cobra a clear defeat. Jay retorted: “Horsepower wins sales, torque wins races.” This is where electric motors reign supreme with their instant, large and constant torque. Torque is the actual force that turns the wheels and propels a vehicle forward.

Through a school fundraiser I got a weekend drive of a Tesla S. I asked if they had the 2015 top-of-the-line model available for the drive, the P85D, and they did!  I kept the car for almost three days; offered rides to over a dozen wowed passengers, then loaded the family and completed a tour around the island… Honolulu, Mililani, Haleiwa, Kaneohe, Waimanalo, Hawaii Kai, and back to Honolulu.



A fair comparison would pit the Tesla against the $150,000 Maserati Quatroporte for size and luxury or a $300,000 Ferrari FF for performance and luxury, but hardly anyone is familiar with those Italian exotics. Instead, I’d compare the Tesla S by with two popular cars that I and a lot of other people are familiar with, that also have elective drive: The BMW 335i in hybrid version, which is sold as the Active Hybrid 3, and the top selling sedan in the US, the Toyota Camry, in Hybrid and XLE trim.

F U L L   R E V I E W

People who can deduct expensive car leases or who can buy cars in the range of $60,000 and above owe it to themselves to test drive a Tesla S and its more powerful variants.  I will wait for the 75% scale version of the P85D or its 2016 sister the P90D. I’d love a Tesla M, M for motor sport; 25% smaller, 25% lighter and 25% cheaper than the P85D.  Hopefully one of these days Elon Musk will read this and oblige me …

Gas or Electric Car? Website Estimates Fuel Costs

The Institute for Transportation Studies at the University of California-Davis has a tradition in researching alternative propulsion systems for light duty vehicles such as cars, vans and pickup trucks.  They recently unveiled an interesting website called EV Explorer.

People can input various types of cars and their point to point trips such as their daily commute. The EV Explorer uses Google maps to find the best route and then calculates the annual cost of round-trips depending on how many times a week a person makes this trip.

The website also allows for comparisons that take account of the local cost of living. In fact the user should include his/her local cost of gas and electricity instead of using the default national averages.

Not surprisingly, the results are startling for Honolulu compared to the average U.S. city. Not because Honolulu has expensive gasoline (it does) but because it has outrageously expensive electricity (almost three times the national average!)

I used a popular family car, the 2014 Toyota Camry in two versions, one with the standard 4-cylinder engine and one with the hybrid powerplant.  I left unchanged their two electric vehicles, the Chevy Volt and the Nissan Leaf. The trip I used was from the UH-Manoa where I work to Kailua where I used to reside. An even 30 mile round trip.

Using average U.S. prices with regular gas at $3.8 per gallon and electricity at 14 cents per KW-hour, the electric vehicles have a clear advantage in terms of money spent on fuel. Just for this trip over a year a Nissan Leaf could save be $500 over the regular Camry.  But wait!


I need to adjust the prices for Honolulu where the price of regular gas is $4.1 per gallon and the price per KWh is 40 cents (including the fixed charges added by the utility.).

The picture changes dramatically.  The EVs cost almost as much to make these trips as the regular Camry! For Honolulu, the Camry Hybrid is the right choice.  I run similar numbers about 15 months ago and indeed I got a hybrid version of a sedan that offers a 30% better city mpg compared to the version with the same gas engine alone.

If you are in Hawaii, drive an EV and brag about fuel cost savings, I am sorry to say, but your savings is a figment of your imagination.

Electric Vehicles Are Here to Stay. In Moderate Numbers.

The MIT Review titles the infographic below: Electric Vehicles are Here to Stay.

Yes, but the case for them is not particularly strong and their market penetration will be small for a very long time, for two big reasons.  One is EV's marginal environmental benefit. The infographic clearly shows that the big improvement comes when a gasoline-powered vehicle is converted to hybrid: Its emissions drop from 0.87 pounds of CO2 per mile to 0.57 pounds per mile. All the fuss to get to EV cuts CO2 down only to 0.54 pounds per mile (and probably leaves a much bigger problem with battery recycling at the end.) In addition this estimate does not likely account for all the charging infrastructure that is being installed from scratch.

The second reason is the affordable price of fuel, gasoline in particular. It will be priced at around $4 per gallon for a long time thanks to major forces that work against major price increases, such as:

1. Hydraulic fracturing of fracking for natural gas extraction, which curbs the demand for oil by vast amounts. (In 2000 fracking yielded 1% of the natural gas production in the US. In 2010 it yielded 20% of the production. A breakneck acceleration in such a capital intensive industry thanks to my fellow Greek and father of fracking George Phydias Mitchell.)
2. Sustained oil prices in the $50 to $100 per barrel make expensive explorations affordable, so a healthy supply of oil will be available to satiate the increasing demands of the developing world.
3. Substantially decreased demand for gasoline due to the popularity of high mpg vehicles (CAFE requirements and sales success of hybrids and plug-in hybrids; can't buy a Hummer anymore.)
4. Less travel due to persistent high unemployment and mega economic downers such as debt, deficit, bankrupt cities and countries, and looming pension and health care social costs in the US.
5. Continued public and private investment in renewable sources of energy.

Tesla Is Reinventing the Industrial and Infrastructure Process

Tesla is not only reinventing the car...  They are reinventing applied science, industrial product development and infrastructure planning.

At Toyota "we get a lot of standards and specifications, then we build a prototype and test it. At Tesla they get the standards and specifications set, and then change it on the fly. They spend more time in the validation phase. We spend more time in up-front planning.”

Typically we plan and design infrastructure (e.g., energy and transportation systems) too much. But rarely we go back and validate whether systems really worked as intended...

Unofficial assessments:

• Did the H-3 Freeway meet its traffic target?  It exceeded it.
• Did the Kal. Hwy widening relieve Hawaii Kai to Kahala trip times? Travel times were reduced by over ~25%.

Official assessments:

• Do modern (built after 1995) light and heavy rail systems in any city in the US meet or exceed their planned ridership that justified their construction, after 5 or10 years in operation?
• Nine out of 10 failed to do this. Several of them spectacularly. The largest US failure (after Tren Urbano in Puerto Rico) will be Honolulu.

City Transport 2020: The Future Can't Come Soon Enough

Here is a sample compilation of technological breakthroughs reported in the second half of May 2013:

CNN: The future of travel: How driverless cars could change everything

The Economist: The future of the car -- Clean, safe and it drives itself

The Economist: How does a self-driving car work?

The Economist: Tesla "General Electric Motors" has high hopes for its high-spec electric cars

Daily Caller: Tesla electrifies the auto market (This week American electric auto manufacturer Tesla Motors (TSLA) broke $100 per share.)

INRIX Expands Real-time Traffic Coverage: US, EU. Traffic conditions in Honolulu at noon on May 29, 2013 compiled as a digital layer that can be used by in-vehicle, broadcasting and other means are shown at the end of this article.

New Geography: Driving Trends in Context
Figure 4: Drive alone, carpool, motorcycle and telecommuting are over 90%.

I foresee an epic battle: Google and the Technologists vs. Sierra Club and the Greenies.

Where are the Planners and Transit in this bright future? They are largely Irrelevant!

Back to now: Sadly greenies, liberal politicians and urban (transit) planners continue to waste a huge portion of public and transportation funds on Smart Growth, Rail Starts and Complete Streets. Like the current Plan Bay Area 2040 plan that allocates 62% of the transportation funding to the 10% mode of transportation.(1)

The new wave of automated urban transportation cannot come soon enough!

---------------
Note (1) Plan Bay Area Report: “The analysis for the most recent regional transportation plan, Transportation 2035, suggested that the region’s transit system is not sustainable based on current projections of transit costs and reasonably anticipated revenues. Transportation 2035 identified a region-wide transit capital deficit of $17 billion and operating budget deficits of $8 billion over the next 25 years.” These are staggering deficits for a transportation mode used by 10% of commuters and less than that by non-commuters.  Planners acknowledge that these deficits are not sustainable for the community. Yet Plan Bay Area calls for more deficit-making transit.

Big Rooftop Solar Panels Make Sense in Hawaii - Without Any Subsidies!

Question: Does $150,000 installed cost for approximately 45 KW make sense?

Answer: Yes, but only in Honolulu.

Explanation: There’s a lot involved, so off to Hawaii Reporter for the full article.

Want a Fine Electric Car? Not in Hawaii.

The Tesla S is a fine EV, comparable to a BMW 5 series or a Mercedes S class.  Tesla argues that their model S can also be cheaper than its competitors. It has developed a calculator to prove it, based on location, incentives, fuel and electricity prices, and owner annual mileage.

I looked into the Tesla S and made some calculations. A couple of months ago I mentioned on the Rick Hamada Program on KHVH that my estimates indicated that in Hawaii if I was choosing between a $50,000 Tesla S and a $50,000 BMW 528i,  I should buy the BMW. (Cars were optioned so that with EV incentives they came with approximately the same "out the door" cost.)

This is the outcome of outrageous electricity prices which, thanks to renewable energy mandates and meddling politicians who pick winners (for their own self-interests,) are continuously escalating,

As you can see below, the true cost to own a base Tesla S in Hawaii is 17% more than California and 34% more than Colorado (excluding applicable taxes, insurance and registration differences, etc.)

Where is Hawaii Transportation Headed?

Remarks to the Hawaii Venture Capital Association and ThinkTech Transportation Panel, Plaza Club, February 28, 2013.

Aloha and thank you for the opportunity to present you my take on the future of transportation in Hawaii.

• Honolulu has among the nation's worst quality roads.
• Honolulu has among the worst traffic congestion particularly among peer cities.
• Hawaii has among the highest rates for drunken driving.

To solve all these highway related problems, Honolulu ordered a 5 billion dollar train.

The unquestionable and predictable result is that all these problems will get far worse by the time the train is installed. And by that time Honolulu will be short on transportation funds.

With less funding, there is no doubt that the congestion, maintenance and safety problems will get even worse.

In December 2007 Hawaii got the private Superferry. This was a means to get bulky items, equipment and vehicles between islands in 3 to 6 hours instead of 3 to 6 days. However, Hawaii did its best to preserve its way of moving bulky items, equipment and vehicles between the islands in 3 to 6 days.  A key supporter of the Superferry's execution is now Hawaii’s Representative in Congress.

Hawaii is probably the most oil dependent place on earth. Sure many Greek and other small islands depend on diesel generators to make power but their winter population is usually 1,000 to 10,000 people. Here we have 1.5 million people in the middle of the Pacific and we are about 80% dependent on oil and its volatile pricing.

Instead of investing in solid alternatives like coal, natural gas, trash and geothermal, we are now approaching the waste of one half billion dollars on flaky wind and solar.

Worse yet, we are extremely fuel dependent for land, air and sea transportation. Smart government should have found means to develop gobbles of cheap electricity so that we can extract fuels from algae and biomass to fuel vehicles, boats and airplanes.

But our flaky government is concerned with plastic bags and shortcuts to development, like the PLDC. And we are losing the Tesoro refinery.

The Tesoro plant used to make asphalt, but county and state government wouldn’t commit to a schedule of road repairs. So about 10 years ago Tesoro stopped making cheap asphalt. So now we need to bring it in and store it.

Hawaii government promotes EVs by making expensive, anti-business mandatory parking and charging regulations. At the same time Hawaii offers EV buyers the highest electricity rates in the nation, to punish EVs as much as possible.

The cost of power in Hawaii is three times the US average. So the 90 MPGe Nissan Leaf is 30 MPGe in Hawaii. Do you know how many conventional cars you can buy that deliver 30 mpg or more, and have a much lower price, and require no subsidy like the five grand we dole out for each EV?

And answer me this. Why are we even promoting EVs when 90% of our electricity comes from oil and coal? Each EV that clocks about 50 miles per day consumes as much electricity as a modest house with 4 people. Isn't this a fake and indeed disastrous oil independence policy?

Again thanks to our silly renewable mandates the KWh rates will only go up, so we will get less power, less reliability, and higher rates.

What's the future of transportation in Hawaii you ask?  In the past quarter century, transportation (except for TheBus,) public education and energy performance in Hawaii have ranked in the bottom half in the US or very near the bottom. I expect that this level of poor performance will get worse.

Although there are great alternatives, Hawaii is actively burying its potential for a bright future. Cost-effective decision making, long term sustainability planning, and accountability with stiff penalties are all absent. And so is our chance for improvement.

Mahalo!

Electric Vehicles: Another Government Bet, Another Taxpayer Loss

I quote below a summary by Robert W. Poole, Jr., Director of Transportation Studies, Reason Foundation that he originally titled What's Wrong with Electric Cars?
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Several years ago in this newsletter (prior to the debut of the Chevy Volt), I celebrated the vision of a future of zero-tailpipe emission cars, powered by breakthrough battery technology. Articles on advanced batteries were appearing in respectable places like MIT's Technology Review, and Silicon Valley venture capitalists were ramping up funding of electric vehicle (EV) and advanced-battery startups. With the coming of practical, zero-emission vehicles, I hoped, a lot of the anti-car, anti-highway ideas that I disagree with could be dismissed as irrelevant.

Alas, several years later, things don't look so bright for EVs. Canadian columnist Margaret Wente, writing in The Globe and Mail last fall, summed it up as follows: "As Dennis DesRosiers, a leading auto consultant points out, consumers simply won't pay a $20,000 premium for a vehicle that doesn't go very far, isn't very convenient, and runs out of juice as soon as you turn on the air conditioner." And that, I think, neatly explains why:

• sales of the highly touted Chevy Volt totaled just 7,671 last year, and
  
• the Nissan Leaf did only marginally better at 9,674.
  
• The Daily Mail in London reported that only 2,149 EVs have been sold in Britain since 2006.

Wall Street Journal auto industry analyst Joseph White in February penned a detailed comparison of the Chevy Volt and the conventionally powered Chevy Cruz, about the same size but selling for half the Volt's $40,000 price. The Cruz is breaking sales records, while the Volt is a dud. The underlying problem is simply that despite lithium-ion batteries being far superior to the lead-acid batteries that powered GM's previous electric car (the EV-1), they are still heavy, costly, and vastly less efficient at storing energy than that miracle fuel, petroleum.

For EVs like the Volt, Leaf, and Ford's Focus, the battery pack costs $12-15,000, about one-third the cost of the vehicle. And that is despite $1.26 billion in federal subsidies to battery producers over the last several years. There may be some future battery technology that will represent a breakthrough in energy storage, but lithium-ion clearly is not it.But that has not stopped the government's multi-front program of jump-starting an EV industry based on flawed technology.

Besides grants and loans to battery companies, the Department of Energy and the Administration's stimulus program have put some $9 billion for EV production into major auto companies like GM and Nissan as well as a whole raft of start-ups such as Tesla, Fisker, Bright Automotive, Think, and even truck-maker Navistar, which got $2.4 billion to jump-start production of an electric truck called eStar that has found few buyers. (A number of the smaller start-ups have already filed for bankruptcy.) In addition, of course, buyers of EVs get a $7,500 tax credit (which the Administration's current budget proposal would increase to $10,000). That credit applies not just to the low-end Leaf and Volt but also to the $100,000 Fisker Karma and Tesla roadster.

The average household income of Volt buyers is around $170,000, and I'm sure those who have put down deposits for Fisker and Tesla EVs are in far higher brackets. What kind of public policy sense does it make to subsidize playthings for the rich?

The whole federal push to jump-start an EV industry is misguided. As former Treasury Secretary Larry Summers has said, "The government is a crappy venture capitalist." In a field where true breakthroughs are needed if a practical, cost-effective EV is ever to emerge, government funding of basic research and development might be justified. But the attempt to shape and micro-manage the development of an industry is a recipe for massive wasting of resources. As former chairman of the Council of Economic Advisers Michael Boskin put it in a Wall Street Journal op-ed in February, "Industrial policy failed in the 1970s and 1980s. Letting governments, rather than marketplace competition, pick winners and losers is just as bad an idea today.
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I should add that while in South Korea last month I read "China's dream of electric car leadership elusive" and I quote:
In 2009, [China] announced bold plans to cash in on demand for clean vehicles by making China a global power in electric car manufacturing. They pledged billions of dollars for research and called for annual sales of 500,000 cars by 2015. Today, Beijing is scaling back its ambitions, chastened by technological hurdles and lack of buyer interest. Developers have yet to achieve breakthroughs and will be lucky to sell 2,000 cars this year, mostly taxis.

Volt, Prius or CRV? Numbers Make the Choice Obvious.

The fully worded question is: How does the extended-range GM Volt Electric Vehicle compare with Toyota’s fourth generation hybrid Prius and Honda’s popular compact SUV the CRV?

I was not inclined to immediately dismiss the GM Volt as an expensive failure, (e.g., Chevy Volt is Automotive Version of Solyndra) and the October 2011 issue of Consumer Reports (CR) encouraged me to look into this different car.

Although CR did not award the Volt its coveted Recommended status, some of its critique is excellent for a compact car with unconventional technology:

• “Responsive steering makes the Volt feel fairly nimble in turns.”
• “The Volt was secure at its handling limits.”
• “The ride feels solid and firm yet compliant.”
• “Braking distance was very good overall.” And this one:
• “The Volt is amazingly inexpensive to run on short trips.”

The last one has twice the significance for Honolulu. Because of the compactness of the land, we make many more short trips in Honolulu than motorists in spread out mainland cities with about one million population. But our electricity cost is roughly three times higher than mainland US.

Does a Volt make a good choice? We can arrive at an answer by comparing it to two popular choices in Honolulu like the Toyota Prius and the Honda CRV. (1)

CR compared their $43,000 Volt to a $26,500 Toyota Prius and a $18,500 Hyundai Elantra. It excluded the purchase cost. Based on gasoline and kilowatt-hour costs, CR found that Volt is cheapest for 30 mile trips, is similar to hybrids for 70 mile trips, and loses its advantage as trips get longer.

To get to a better answer I used both Honolulu and US mainland prices for fuel and electricity, 30 mile and 70 mile trips, an 8 year/100,000 mile horizon (that’s when Volt's battery warranty expires), US and Hawaii tax incentives, and resale value at the end of 8 years. One component that remains uncertain in these half life-cycle cost estimations is maintenance.

In 8 years, Prius and CRV will make extensive use of their internal combustion engine. They would need about 20 oil changes and a few component replacements which should cost $1,000 to $2,000. Also both of them may require transmission repairs which are not applicable to the Volt. Both Volt and Prius have regenerative braking so they may not need brake pads before 100,000 miles but the CRV will likely need two sets of front brake pads and rotor resurfacing. Brake costs for the CRV for 8 years and 100,000 miles may come close to $1,000. Maintenance and repairs play a role in life cycle cost.

Insurance, finance charges, license, annual registration and safety inspections were not included because they are similar for all three cars for the same driver at a given location, e.g., registration and insurance rates vary widely by state. (As of this writing I am not certain that Volt is subject to Smog Test where applicable.) These costs do not affect the bottom line choice.

Discounted parking and other perks for EVs were not included. Currently EV perks in Hawaii are as follows:

• Special electric vehicle license plates.
• Free parking at State and County facilities including meters.
• Free parking at UH parking structure.
• Exemptions from high occupancy vehicle lanes.

For some users these perks may amount to more than $1,000 per year, at taxpayer expense (e.g., a stall occupied by an EV cannot be occupied by a fee-paying vehicle, so EV user gains amount X and taxpayer loses parking revenue X.)

A big unknown is the durability and replacement cost of Volt's battery. GM's warranty is for 8 years and 100,000 miles. Note that California requires 10 years/150,000 miles. As a result, Volt buyers will not receive California's $5,000 incentive. This limitation is not applicable to Hawaii.

The Prius' entire hybrid system (which includes the hybrid battery pack) is warranted for 8 years/100,000 miles. A battery replacement with a new one at a dealership costs roughly $4,000. There are lower cost options such as Re-Involt Technologies in North Carolina: “...batteries for the Prius 2001-2010 are $1675.00 plus shipping and your old battery.”

The table above details my estimates for the usage of these three cars in Honolulu using monthly gasoline prices and my own electricity bills to determine the actual bottom line cost of HECO’s price to the household. This price was then reduced by 6 cents, a discount that HECO offers if the EV is charged at home overnight. I assumed that this preferential treatment will last for the 8 year horizon in my analysis. HECO installation of a appropriate meter, purchase and installation of a 240V charger add over $2,500. There is a $750 incentive for the 240V charger.

Despite Honolulu’s expensive electricity, use of the Volt exclusively for short trips is much cheaper than its competitors. Honolulu Volt owner’s running cost comes to $595; the same cost at an average U.S. mainland city is $283.

Then I used a mix of 5 trips of 30 miles each and 2 trips of 70 miles each, per week, to arrive at my bottom line estimates. With such usage, the Volt, Prius and CRV will cost $1,150, $992 and $2,044, respectively, to run for 12,500 miles per year in Honolulu, and $698, $843 and $1,738, respectively, to run for 12,500 miles per year at an average mainland city.

Volt is the cheapest to operate on short and medium trips on the mainland, and Prius is the cheapest to operate on short and medium trips in Honolulu; about $150 cheaper than the Volt and more than $1,000 cheaper than the CRV. HECO’s high price per kilowatt-hour takes a toll on Volt.

Using Edmunds.com’s True Market Value(2), a flat documentation fee, 4.5% tax (GET in Hawaii, 8% sales tax on mainland) and applicable incentives, I arrived at the following cost estimates:

CRV has a purchase price of about $26,000 and Prius is about $29,500. Volt is $31,500 after $7,500 in federal incentives and $4,500 in Hawaii incentives have been deducted. These prices include destination charges and regional adjustments of about $750 (an add-on to car cost in Hawaii.) Due to lower state incentives and higher sales taxes, the Volt is about $3,000 more expensive on the US mainland. The other two are about the same as in Hawaii.

The bottom half of the table above is the bottom line. I arrived there by estimating today’s resale value of the three vehicles for 8 years in the future, using Edmunds.com. Both CRV and Prius have an over 10 year history on the market so their used car value is reliable. There are no estimates for the year-old Volt, so I assumed that it will have a resale value equal to the Prius.

Bottom line is that in Honolulu over 8 years and 100,000 miles the CRV will have a total cost of $33,775, the Prius will cost $27,888 and Volt comes in the middle with a total cost of $31,080. Mainland estimates are in the same order with only the CRV costing about $1,500 less than Hawaii due to the cheaper gasoline price.

With analysis like this, one can run “what if” scenarios quickly. What if average gasoline price for the next 8 years increases by a whopping 50% over the 18-month average I used? This would take Honolulu’s average gas price to $5.43 per gallon. In this case, the bottom line for the three cars will be as follows: the CRV will have a total cost of $41,963, the Prius will cost $31,861 and Volt would come in the middle at $32,589 (... plus registration, insurance, maintenance, parking and other applicable fees ... and the charger for the Volt.)

But over 75% of Oahu’s electricity comes from oil and this is not likely to change by much in the next 8 years. So if gasoline goes up by 50%, then electricity will go up by at least 30%. This increases Volt’s bottom line cost to $34,394. So even with very expensive gasoline Prius is cheaper than the Volt by $2,500.

All estimates indicate that Volt is a losing proposition to its buyer and it is certainly a losing proposition to the taxpayer because tax incentives of $12,000 are involved in the sale of every Volt in Hawaii. A Volt buyer could have gotten a much lower priced hybrid car and $12,000 of taxpayer monies could have gone to far more worthy causes. Parking incentives and the tax credit for the home charger may also add several thousand dollars of taxpayer subsidies.

Even the most extreme of “green” advocates cannot argue that the environmental benefits of each Volt over a Prius are worth $10,000 to $20,000 depending on location and taxpayer subsidized perks.

The Volt is a huge “miss” for GM, a manufacturer that could least afford a costly “miss,” and the total financial blunder from this vehicle is attributable to misguided policies (of the familiar liberal type.) Billions more will be spent on mandated EV chargers at parking lots, and on government fleet purchases of Volts.

Postcripts: (1) What about the all electric Nissan Leaf? Look for my updated coverage that will include the Leaf once reliable data become available, most likely early next year. (2) Edmunds.com is a reliable publication that I also used in my doctorate dissertation to determine car values in the late 1980s. It includes a “True Cost to Own” estimator that takes into account most of the life-cycle categories mentioned in my article. It has no estimates for Leaf and Volt.