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GM TRIMS COST OF ELECTRIC CARS 25%.


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 flagging lease rates of the EV1, a limited-range electric car introduced in Southern California Southern California, also colloquially known as SoCal, is the southern portion of the U.S. state of California. Centered on the cities of Los Angeles and San Diego, Southern California is home to nearly 24 million people and is the nation's second most populated region,  and Arizona Arizona (âr'əzō`nə), state in the southwestern United States. It is bordered by Utah (N), New Mexico (E), Mexico (S), and, across the Colorado R., Nevada and California (W).  in December, General Motors Corp. lowered the effective cost 25 percent Friday and agreed to partly finance quick construction of 50 public charging stations.

``We face a chicken-or-egg dilemma,'' J. Joseph Kennedy, a sales vice president for Saturn, the GM unit that is marketing the EV1, told owners in a letter they received Thursday. ``To expand our infrastructure quickly, we have to get more cars on the road, faster, but to do that, we have to have more infrastructure in place.''

In five months, Saturn dealers have leased just 175 of the two-seaters, which have Corvette-like acceleration but a range of only 70 to 90 miles on a single charge.

With a value of $34,000, the car's lease price is comparable with some luxury cars and ranges from $500 to $640 a month, depending on available government subsidies. That excludes the $50 a month it costs to lease a home-charging device.

Under the revised terms, EV1 lease prices will drop to $399 to $549 a month, depending on the state. Current drivers would be eligible for a $4,600 credit.

Besides cutting prices, GM is also trying to bolster the market for EV1s by easing customer concerns about running out of juice.

Aside from the home rechargers of EV1 owners, so far only 47 recharging sites are publicly available across five Southern California counties. There are 22 others in Arizona. In California California (kăl'ĭfôr`nyə), most populous state in the United States, located in the Far West; bordered by Oregon (N), Nevada and, across the Colorado River, Arizona (E), Mexico (S), and the Pacific Ocean (W). , nearly half of the charging sites are at Saturn dealerships.
COPYRIGHT 1997 Daily News
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1997, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

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Title Annotation:BUSINESS
Publication:Daily News (Los Angeles, CA)
Article Type:Statistical Data Included
Geographic Code:1USA
Date:May 3, 1997
Words:271
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