I found something on another site that is a very good argument to make why GM ended their EV1 project. Below is the argument made. It is what i have been trying to say and this guy says it perfectly.
GM took a loss on every EV-1 they made, which means they would have had to raise the purchase price, which surely would have limited interest in the vehicle even further. People today act is there were a quarter million buyers standing at GM's door, waving money and saying please take our cash, we want EV-1's. It just wasn't the case.
I would like you (or any of the other EV-1 disciples) to present the business plan that shows the EV-1 to have been a viable product for GM to continue. Please show the cost of continuing to bring the vehicle to market, what the sales requirements would be to reach profitability and at what pricepoint. Also include the cost for GM to maintain these vehicles during their warranty period and what the expected maintenance costs would be beyond that time-frame. It's real easy to look back over a decade later and say that someone should have done somthing differently without substantiating ones argument. I'm waiting.
Throughout 2001, GM had leasees asking OUT of their leases early, as they stated in their letter to leasees on 02/07/02. People loving their EV-1's so much that they wanted out of the lease early, "coupled with the increased costs to maintain these vehicles on the road" was why GM reconsidered the project. The EV-1 was a test that showed some positives, but not enough to warrant continuing the test.
As far as the cost of the vehicle is concerned, it was leased with an MSRP of $33,995.00. In constant dollars, that equals $47,409.92 in 2008. The original down payment required was $2900 or $4,044.38 in 2008 dollars. The monthly lease payment was $399 - 549, depending on whether you leased in the car in AZ or CA. Those monthly lease payments are equivalent to paying $556.45 - 946.94 per month in 2008. I'm sorry I confused you when I previously said the monthly lease payment was about $700 in constant dollars.
All from vintage on
http://www.autoblog.com/2008/08/04/a...or-their-life/
He has very true points and i just couldnt say it any better so i just used his.