I guess we should be thankful that there is some EV progress.
'Neighborhood Electric Vehicles'
Are Alluring to Manufacturers June 1, 1999
By CHRISTOPHER J. CHIPELLO
Staff Reporter of THE WALL STREET JOURNAL
CELEBRATION, Fla. -- If a few upstart vehicle makers have their way,
Americans soon will scoot around their neighborhoods in a new kind of
battery-powered runabout.
The lightweight contraptions, often called "neighborhood electric vehicles,"
are cheaper than most cars and much zippier than the golf carts commonly
used for street travel in gated communities. Some NEVs cost only about
40 cents to recharge through household outlets and can get 30 miles
between charges. Yet the new vehicles offer features, such as retractable
seatbelts and safety-glass windshields, that aren't found on golf carts.
To tackle the uncharted market, competitors are trying a wide range of
different strategies to exploit various niches within the field-approaches that
might not be feasible for big companies that need to meet high volume
goals.
Low-End and High-End Models
At one end, companies such as Global Electric MotorCars LLC of Fargo,
N.D., are making NEVs that go as fast as 25 miles per hour -- about 10
mph faster than the standard golf cart. Sticker prices for low-speed NEVs,
which come in two-seat and four-seat models, start around $6,200.
At the other price extreme, Corbin Motors Inc. of Hollister, Calif., says it
will start commercial production this month of a three-wheeled vehicle that
goes 65 mph and retails for $12,900.
Company executive Tom Corbin says his father, a veteran of the
motorcycle-parts business, hatched the idea while watching Los Angeles
traffic crawl along next to a nearly empty carpool lane. As a
motorcycle-class vehicle, Corbin's "Sparrow" qualifies for the carpool lane
in most states, he says. It has room for a gym bag and briefcase, and can
slip into motorcycle parking slots in the city, he adds.
While Corbin targets highway commuters, Neighborhood Electric Vehicle
Co. of Eugene, Ore., plans to begin delivering this summer a three-wheeler
designed for commuters using city streets. Its entry won't go faster than 43
mph, but it will cost only $7,500 and will have room for six bags of
groceries, says Carl Watkins, marketing and sales director.
The Neighborhood Electric and Corbin models are both one-person
vehicles with two wheels in front and one in back. Although they are
enclosed, they count as motorcycles under federal guidelines, the
companies say. That means they don't have to meet car-safety standards.
Target Markets
All of these makers see a growing market. Studies show that most car trips
are made by single drivers traveling just a few miles -- a use for which
conventional cars are overpowered and costly to operate.
Already, hundreds of low-speed NEVS are roaming gated and planned
communities across the Sun Belt. Many communities encourage small
vehicles to control auto congestion and pollution.
Celebration, a Walt Disney Co. planned community near Orlando, has
sprinkled NEV parking spots around its village to help create a
pedestrian-friendly environment. Charles Rogers, manager of the local
bank branch, drives his egg-shaped two-seater to work. Bicycle-shop
owner Joseph Judge says he has 22 Global Electric NEVs and plans to
rent them to tourists after the village's hotel opens later this year.
Ultimately, makers of even the slower NEVs hope to reach beyond
sheltered communities and to pick up a piece of the broader market for
second and third cars. Following a ruling by the National Highway Traffic
Safety Administration last year, a number of states now allow vehicles with
top speeds of 25 mph to be used on public streets with speed limits of 35
mph or less.
But NEV makers so far are selling only moderate volumes. Global Electric
has sold about 1,200 vehicles, says Mike Clevenger, marketing director.
Transportation-equipment giant Bombardier Inc. of Montreal, the only big
manufacturer in the market so far, declines to disclose sales figures for its
vehicle, which was unveiled in 1996.
Price is a problem. Sun City Center, Fla., a sprawling retirement complex,
has an estimated 5,000 golf carts, but just a smattering of NEVs. Many
residents say they see little reason to pay more than $6,000 for a NEV,
when they can get around fine in a golf cart for $3,500.
Drivers' Fears
Outside protected areas, many drivers also fear driving a light vehicle
among heavy cars and trucks. Unless more towns and cities create
sheltered driving zones, sales of low-speed vehicles will probably be
limited to niche markets such as gated communities, university campuses,
office parks and resorts, says Daniel Sperling, director of the Institute of
Transportation Studies at the University of California at Davis. But "if you
put all the niches together ... it could be a sizable market," he adds.
Indeed, Lu Cloyd and her husband gladly got rid of their second car and
bought a NEV when they moved to Celebration. Ms. Cloyd says her
NEV is "perfect for Celebration," where the top speed limit is 35 mph and
regular golf carts aren't permitted on streets.
And many drivers feel safer in a NEV than in a golf cart. Sun City Center
residents Don and Sally Durant unloaded their golf buggy to buy a
Bombardier vehicle because they liked its safety features, says Mr. Durant,
a retired Air Force officer. Shortly before that, a friend had been struck by
a car and injured while trying to make a U-turn in a golf cart, Mrs. Durant
recalls.
As NEVs are electric, U.S. buyers can claim a federal tax credit equal to
10% of their cost. In Florida, the vehicles are also exempt from sales tax.
Manufacturers are using a variety of tactics to attract attention. For
example, Global Electric provided a vehicle to actress Pamela Anderson
Lee, who uses it to scoot around the set of her "V.I.P." television show,
according to the Hollywood product-placement agency that acted as
go-between. Naturally, Ms. Lee appears in the vehicle on Global's Web
site. |
