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Feann Torr27 Apr 2015
NEWS

Holden pulls plug on Volt, axes E85

End of the road for GM's 'game-changing' plug-in car as buyers continue to shun EVs

The brand best known for producing large V8 sports sedans has axed its high-profile eco-car.

When it was released here in late 2012, the Holden Volt was pitched as the electric vehicle (EV) that would win over the hearts and minds of Australian motorists who wanted to reduce their fuel bills.

Launched by Chevrolet two years earlier in the US, the futuristic mid-size five-door was powered by an electric motor but also had a small back-up petrol engine to ensure it would never be left stranded.

However, thanks to a $60,000 price tag and a lack of interest from Aussie buyers, just 246 have been sold Down Under in total, and Holden has until now been non-committal on the introduction of the second-generation Volt revealed at the Detroit motor show in January.

Now, the Hamtramck factory where the Volt is built in Detroit has forced its hand, by confirming plans to manufacture the MkII Volt only in left-hand drive, which means it will not be available to right-hand drive markets like Australia.

The Volt's demise follows that of Australia's first EV of the modern era, the $65,000 Mitsubishi iMiEV, which was withdrawn from sale in 2013, and is yet another signal that Australians are not interested in EVs – at least not without government subsidies or less reliance on coal-fired power stations.

Slow sales of the Volt in a market of more than a million new vehicles a year clearly made a business case for the second generation unprofitable, but Holden's director of communications Sean Poppitt denied the car was a failure – at least, no more so than its electric rivals.

"Electric and hybrid vehicles in the [Australian] passenger car market make up less than three per cent of sales. I don't think it's fair to point out any one model. It's not like the LEAF or any other cars are selling strongly here," he said.

Nissan's more affordable, circa-$40K LEAF EV, which has no range-extending petrol generator like the Volt, hasn't fared much better than the plug-in hybrid Holden, the all-electric hatchback finding 488 homes since it was introduced here in 2012.

"Electric and hybrid vehicles haven't taken off in Australia," said Poppitt. "Considering the lack of infrastructure, the lack of government incentives, the large distances between cities, it's a tough sell."

EV sales numbers in Australia back up that hypothesis, and even hybrid vehicles aren't particularly popular here. There are several issues that play against electrified cars, and a quick glance at the countries where EVs and hybrids are popular shows strong government incentives or tax breaks.

As car-makers continue to lobby government for EV subsidies here, Poppitt suggested the status quo was unlikely to change in the short-term.

"If [incentives] cost everyday Australians more money to pay for very few people to buy and run electric cars, I'm not sure it would be the most popular policy," he said.

"Me personally, I can't talk for Holden or the industry here, but it's my view that we're on a slower acceptance curve because of all those issues I mentioned. It will take a longer time for Australians to fully embrace that technology."

Despite the culling of Holden's green halo-car, Poppitt said the future for GM EVs and hybrids is certainly not all doom and gloom. Asked if Holden would consider adding an EV in future, Holden's communications boss was upbeat.

"Absolutely. The Volt is not being offered in the next-generation in right-hand drive — our hands are tied there — but GM is constantly looking at various different hybridisation and electric options. We'll continue to evaluate everything that's possibly available for our market, absolutely."

One such possibility is the Chevrolet Bolt, a concept car that was designed and built in Melbourne by Holden Design Studio, and is expected to reach production as a smaller, more affordable EV alternative to the Volt.

Poppitt concedes that Chevrolet "hasn't made any announcements about production, where it will be built or whether it'll be left or right-hand drive," but he left the door open for local release if it was made available to Holden.

"We would certainly evaluate and look to bring in any options we could in the electric and hybrid space, for sure."

Holden's E85 Commodores also axed
Meantime, Holden has quietly dropped E85 compatibility from its Australian-made Commodore range, as of the MY15 line-up released late last year.

Commodores have been able to run on E85 – an 85 per cent ethanol fuel available from selected Caltex service stations, the number of which is currently being reduced – since late 2010.

At the time, Holden touted the Commodore's capability to run on the environmentally-friendly fuel, which can be produced from renewable sources, as "the first major step forward in our efforts to move renewable fuels like bio-ethanol from a niche product into the mainstream".

However, lack of demand for the Commodore's 'flex-fuel' capability and the absence of E85-compatible model from other brands has made production of the fuel unviable and production of E85 Commodores pointless, even though manufacturing costs are similar.

At the same time, an ambitious plan to turn household waste into fuel-grade ethanol in Melbourne – as part of a world-first $400 project led by a consortium including Holden, Caltex, North American biofuel specialist Coskata, waste management company Veolia and the Victorian government – has been shelved.

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