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Renault Fluence EV to Cost Significantly Less Than Gasoline Version

 
3,617 views Oct 12, 2009

Renault Fluence EZ concept, 2009 Frankfurt Auto Show

Renault Fluence EZ concept, 2009 Frankfurt Auto Show

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According to Better Place CEO Shai Agassi, the cost of the upcoming Renault Fluence ZE EV will be significantly less than the same model with a gasoline engine.

The Renault Fluence ZE was unveiled at the Frankfurt Motor Show.  It will become the first commercialized vehicle to utilize the Better Place battery swapping station and Renault has set its sights high in terms of target sales for the vehicle, hoping to garner widespread appeal.

Though official pricing has not been announced, Agassi said, "Our partner Renault has not set prices yet.  But the e-car will be 3,000 to 5,000 euros ($4,400 to $7,350) cheaper than the model with a gasoline engine.  Governments give incentives for electric vehicles, that's how we can sell the car at cheaper prices."

Driving down the cost of the vehicle was key for Better Place and Renault.  In order to accomplish this goal, Better Place purchases the batteries and leases them to customers which could eliminate more than $10,000 in upfront costs.  According to Better Place, they anticipate charging around 250 euros per month in leasing fees if the customer drives less than 30,000 km per year.

What if you drive more than that?  Better Place offers an unlimited mileage flat rate for 340 to 350 euros per month.  Agassi said, "If a customer has a flat rate to drive as much as he wants, he will pay 340 to 350 euros- try to get such a deal with Shell."

Better Place anticipates a slight profit from charging by mileage which will eventually pay back the companies cost of purchasing the lithium-ion batteries.  They anticipate breaking even by 2012.

EVs are expensive and many companies are finding ways to deal with the high costs.  Initial sticker shock may turn buyers away and many believe that initially offering a lease on the high cost battery is a good bet until the technology is proven, costs come down, and buyers are willing to pay more up front.

Source:  Reuters.com





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Comments (15)

  1. By Mark Posted: 10/12/2009 6:09am PDT

    There are consumers like myself who would buy the car even it is more expensive for ecological reasons, but they are few. Cost will be a very important aspect and I truly hope that Renault can market it well. Consider that in Europe I stand to save about 2k euro per year by switching to an EV. If the EV cost 10k euro more than my current car I would recover my costs in 5 years (I would drive an EV for 10 years). This needs to be explained to the dumb public. EVs will cost more in sticker prices but fuel is very very cheap.
     
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  2. By Rashiid Amul Posted: 10/12/2009 6:40am PDT

    My question is the the typical European spend more than 250 euros per month on petro?
     
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  3. By Niklas Posted: 10/12/2009 8:23am PDT

    The typical European driver spends some 100 EUR a month on petrol (we have small cars) so the 150 extra Better Place charges per month better include more than just electricity. Assuming the car without battery cost 5000 less the EV will be the more expensive option after about three years.
     
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  4. By russ Posted: 10/12/2009 8:50am PDT

    Without the battery? I hope it costs less!
    Shai Agassi is trying to make his high priced (compared to his costs) Better Place option look good - nothing more.
    Trying to give the stock a boost?
     
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  5. By gsned57 Posted: 10/12/2009 11:34am PDT

    The car may cost less than a gas version but at 250 euros a month isn't that about the cost of a comparable lease? so you buy the car and then lease another car? I don't think too many people are stupid enough to fall for the betterplace scam. gas in europe is expensive but not that expensive. Spend a little extra upfront (10,000) and charge your own battery for a tenth of what betterplace is charging.
    Betterplace pisses me off so much because people are going to read this article and think in order for EV's to be practical they'll have to pay this jacka$$ 250 every month for electricity and a battery lease. It's going to do more harm than good for EV's
     
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  6. By alec Posted: 10/12/2009 4:49pm PDT

    you guys are correct...better place is a scam....just take into consideration that in 3-5 years li-ion batteries will offer 300 miles autonomy and will charge in 5-10 minutes in charging station.....so why go on long-term with better place...???? we are at the beginning of ev , but in europe the infrastructure will be in place in 36 months , so don't worry , and also take in consideration that , as with all electronics , there will be upgrades , so i wouldn't be surprised if there will be better batteries offered as an upgrade very soon....and at competitive prices....
     
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  7. By Noel Park Posted: 10/12/2009 5:12pm PDT

    All I can say is that Mr. Agassi makes me very nervous. Come on Volt!
     
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  8. By Rashiid Amul Posted: 10/13/2009 3:59am PDT

    Thanks Niklas,
    That is exactly what I was trying to get at.
    Is it really worth it? It sounds like the answer is no.
     
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  9. By super390 Posted: 10/13/2009 12:07pm PDT

    Gasoline in Western European countries is averaging $6.50 a gallon. The Fluence is a fairly large car, so if they can offer these prices on that model, it is competing against a gasoline car that averages 25 mpg in urban driving. 18,750 miles means 750 gallons of gasoline, thus $4875 in fuel costs. 250 euros a month equals $4200 a year.
    Now if Better Place's figures were meant for a much smaller car, or if we're comparing it to the more popular diesels, that's another matter.
    This car looks bigger than my US Ford Focus, which is struggling to get over 20 mpg in neighborhood driving. If we're going to have an argument, it should be about how many Europeans are driving 30,000 km a year under urban conditions. Given the fantastic sprawl of European capitals, one could commute quite a long way having to choose between traffic lights and gridlock.
     
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  10. By pat Posted: 10/18/2009 6:08am PDT

    without the battery cost, EV should be cheaper to buy as they have fewer parts (a lot cheaper) so one pays monthly 200-250 euros for driving ..without owning the battery seems a good deal ..We need to sacrifice a bit to make us less dependent on the crooked Arabs ..
     
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  11. By pat Posted: 10/18/2009 6:17am PDT

    Hope that Better Place comes to US ..in some cities ..Most fo the driving in cities is commute ...may be 2-3 times a year people do longer drives (it will be even less now that US companies now have less vacation days, sick days & make employees work longer ..lol However, when long distance driving is needed ...Rent a car ..for the week etc ..Looks like a Great way to to own 1-2 small EV for the family ..much cheaper than owning a big SUV ..but the fools in US will never learn ..They are too spoiled ...
     
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  12. By  vladd Posted: 10/25/2009 3:17pm PDT

    I agree leasing a battery at 250E/month might not be seem like the best option, but yo have to agree that there has to be a start! If cars with internal combustion engines would just be starting out (no critical mass production achieved yet) their price would be high as well - that is currently the problem with big LiIonPo battery packs for EVs. Someone has to pay more in the beginning.
    Still I see most comments haven't really been thought through that well.
    The questions are:
    1)HOW MUCH PER MONTH DO YOU SPEND FOR GASOLINE AND SERVICE OF YOUR CAR? Average EU driver spends well over 200 €/month if the servicing costs are included. EVs require much less servicing cause they're much less complicated. Added fact: what you spend in one year for gasoline pays for a lifetime of energy of an EV!
    2)WHAT ARE THE EFFECTS OF DRIVING AN ICE CAR? pollution-wise.
    3)This BetterPlace business model got a lot of governments involved and got the EV moving again after its 2 quite big failures.
    I personally believe that this is going to be the biggest technological change & economic influence of the 21st century - it should start a new revolution.
     
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  13. By Fernando Posted: 11/22/2009 10:31am PST

    Hello from Spain!!
    I think leasing is a good option the 2 first years, because batteries will be cheaper and with more autonomy. In that moment you will buy it. In Spain the incentive is 5000-7000 euros. I think this car cost without batteries 20000 euros less incentives 14000 euros and finally with batteries (in 2012) 24000 euros. In 2014 i wish batteries cost 5000 euros and 250 km automomy.
     
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  14. By Rick Posted: 6/19/2010 9:42am PDT

    Not cheaper than an ICE, I hear the McRipoff company will sell cars for 8000$ less than a typical comparable car. But the engine is not included in the price and that goes for 350 euros per month. ;P
     
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  15. By Jonathan Posted: 7/15/2010 12:52am PDT

    I have just returned from Tel Aviv where I, along with 99 others (and many thousands so far in total), saw the Better Place demonstration, including the 90 second battery change service station, and drove cars round the test track. All I can say is everyone seemed to want to sign up immediately (it will be available there from 2011), and sadly I'll have to wait longer before it gets to Australia. It is not all about money but I'm sure it will save that as well! Well done Mr Agassi!
     
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