Toyota, Ford Taking Different Approaches to Future EV Rollouts

December 2nd, 2010 BY njkaters | No Comments
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Major automakers throughout the world will be releasing long-awaited plug-in hybrids and electric vehicles in the United States over the next decade. Consumers should not expect to see Nissan LEAFs, Chevy Volts and Fisker Karmas in their neighborhoods anytime soon. Delays in EV rollouts throughout the United States come from high production costs, inconsistent charging infrastructure and uncertainty in consumer behavior. These vehicles will be delivered to select markets that match the long-term goals of automakers. Toyota and Ford recently described rollout plans for their first EVs, using slightly different criteria to maximize sales.

At the Reuters Global Autos Summit, Toyota unveiled a fairly conservative rollout plan for the RAV4 EV set for delivery in fall 2012. Representatives from the automaker disclosed that it will market this vehicle in states where zero emission vehicle (ZEV) standards have been established. This focus on ZEV states allows Toyota to bypass the growing pains of EV adoption with existing infrastructure and regulations. Toyota also noted that ZEV programs feature incentives for green vehicle adoption, which would benefit the automaker as its sales shift from fleets to consumers. ZEV standards adopted by the California Air Resources Board (CARB) have been replicated in 13 states including New York, Oregon, New Jersey, Massachusetts and Florida.

Ford looked at market conditions rather than regulatory practices in defining rollout plans for the Focus Electric set for release in fall 2011. This all-electric version of the popular sedan will be released in 20 cities throughout the United States from Portland, Oregon to Orlando, Florida. The automaker reviewed myriad criteria in determining these target markets including hybrid vehicle sales and proposed infrastructure plans by local governments. Ford is working with utilities and government officials in these cities to market EVs, create charging infrastructure and educate consumers on the benefits of green vehicles.

These EV rollout plans by Toyota and Ford reveal the slow slog ahead in spreading green vehicles throughout the country. Toyota’s focus on 14 ZEV states provides a substantial consumer base that may not expand much over the next decade. These states have been more progressive on legislation regarding vehicle conversions and hybrid incentives than the remaining 36 states. The all-electric RAV4 may only penetrate into the Pacific Northwest, the Northeast and the Southwest for the foreseeable future. Ford’s plans might be more effective in the short term in spreading the Focus Electric across a diverse spectrum of consumer groups. This EV rollout plan may be more of a struggle as Ford tries to deal with budget hawks at the local level and utilities concerned about strained grids.