## Ford Focus Electric in California qualifies for $10K in tax credits, HOV access ##### 13 March 2012 California buyers of the Ford Focus Electric will be able to receive up to$10,000 in tax credits ($2,500 state,$7,500 federal) and enjoy high-occupancy vehicle lane (HOV) access after the car was just approved for California’s Clean Vehicle Rebate Program (CVRP).

California Focus Electric customers can now apply to receive a $2,500 tax rebate when the Focus Electric is purchased or leased for 36 months or longer. In addition to the state rebate, Focus Electric qualifies for the existing$7,500 federal tax credit.

Traffic congestion continues to worsen in California where, according to the Texas Transportation Institute’s annual Urban Mobility Report, Los Angeles and the San Francisco-Oakland metropolitan area rank No. 3 and 7, respectively, for the worst congestion in the US. In Los Angeles alone, this congestion contributed to a total of 38 million gallons of wasted fuel over the course of a year. This congestion costs the average Los Angeles commuter an additional $1,464 a year. In California, the cost to fully charge the Focus Electric at night is between$1 and $2, enabling 76 miles of average driving. In a gasoline vehicle that gets a fuel-efficient 38 mpg at$5 per gallon, the cost to drive that same 76 miles is $10. The Focus Electric CVRP rebate approval comes on the heels of receiving an EPA-certified 110 miles per gallon equivalent (MPGe) city rating and 99 MPGe on the highway. The approved label also will say customers could save$9,700 in fuel costs over the course of five years compared with the average new vehicle.

Ford will ramp up Focus Electric retail production in the first half of 2012 for dealership availability in California, New York and New Jersey. By the end of 2012, Focus Electric will be available in 19 markets across the US. Ford has already delivered the Focus Electric to key fleet customers and technology partners, such as Google.

California....Land of Fruits and Nuts.

The Focus Electric has an MSRP of ~$40k, and even the Chinese-made Coda is pushing close. These numbers need to come down. Even an average savings of$6/day 250 days per year won't pay off the price difference between this and an ICE Focus in the crucial first 6 years.

Coda is over $38,000 so they really DO need to control costs and bring prices down. If they can get a compact with 150 mile range for under$30,000 they might have something, but it might take another battery advance or two for that to happen.

The range numbers are something to consider also, it might go 100 miles at 45 mph, but less than 70 miles at 65 mph. As they say "your mileage may vary".

I remain convinced that with the right combination of specifications, features and price, it could become popular. Combine that with fast chargers everywhere and you might get some of those large fuel user commuters to take a look.

New electrics are coming online, but not selling (surprise! with those prices). My bet is, they find a way to offer a cheaper model within a year -- perhaps with 1/2 the range as a commuter car where fast chargers are available if needed.

Concerning the first remark here, there's no mention of agricultural activity in this article. However it does teach us much about the author.

Affordable BEVs need improved batteries at lower cost.

Will those two conditions be met by 2015 or so?

That is the idea of incentives, the car is priced at $37,500 and with incentive costs the buyer$30,000. As time goes on the incentive goes down and the buyer pays about the same as the price comes down.

There are a lot of assumptions in the model. We assume that the price of the car may come down 5% per year for 3-5 years. Maybe it will and maybe it won't. Lot's of people are true believers in "economies of scale" but fail to look at the driving forces to see it that even applies.

Toyota's HEVs are go examples. Considering today's lower price plus the  cumulative depreciation in the last 15 years, a 2012 Prius III is not only better than the 1997 Prius I but is really a lot cheaper. That may be why it is selling so well.

The same (and more) may happen to the Leaf and similar EVs.

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