Chevy Volt: 93 PG?

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By Douglas A. McIntyre Updated Published
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GM (NYSE: GM) says the miles-per-gallon equivalent that its new Chevy Volt will get depends on how it is driven. The No.1 US car company says “The Volt is a complex vehicle that is incredibly easy to use.  And while the new fuel economy label also looks complex, it has more information than any EPA label before it.”

That may be an understatement. The EPA sticker on the Volt’s window shows that its gets an equivalent of 93 MPG when it is powered only be electricity. The number falls to 37 MPG when it is operated on gas alone. That is worse than most small economy vehicles, so drivers who buy a Volt better count on their ability to use only the car’s battery.

GM says that the Volt can operate emissions-free for 25 to 50 miles. That would indicate the need to recharge the Volt battery after every relatively short trip.

The GM announcement about fuel economy points to the weaknesses of the electric car. It is inconvenient to recharge a car after it has gone a relatively short distance. There are few “electric car service stations.” The Volt will presumably need to be taken to the driver’s home for another charge.

Widely regarded auto research firm J.D. Power recently commented that the mass market adoption of electric vehicles is a decade away. Its “Drive Green 2020: More Hope than Reality” predicts that “Combined global sales of hybrid electric vehicles (HEVs) and battery electric vehicles (BEVs) are expected to total 5.2 million units in 2020, or just 7.3 percent of the 70.9 million passenger vehicles forecasted to be sold worldwide by that year.” The first reason that this is likely be true, the research firm says, is that the price of gasoline will not come down enough in ten years to make electric cars a cost-effictive replacement. Power also expects that the current versions of electric car batteries don’t work well enough to result in a groundswell of consumer demand. The research firm also believes that governments will not offer enough financial support to buyers to make electric cars economically attractive.

Drivers often are confused by MPG claims related to electric cars. Nissan said its Leaf will get 99 MPG gasoline equivalents. That is, of course, if the gasoline engine of the Leaf never kicks in. And, what if the car cannot be driven far enough to get back home?A gasoline-powered tow truck will have to pull it there.

Douglas A. McIntyre

Photo of Douglas A. McIntyre
About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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