Mitsubishi announces $6K price drop on 2014 i-MiEV!!!

[NeilBlanchard]

Big improvements they need to do:

Increase the pack capacity.
Flat smooth underside.
Add a crisp Kamm back and wheel strakes.
Add a free wheel coasting mode when you lift your right foot off the accelerator.
Add a dedicated Range Remaining gauge.
Redesign the HVAC controls to make them easier to see and to use.
Add seat and back heaters on all seats.

 

[Don]

I tend to think Mitsu compounded their errors with this price drop by eliminating options. Why slash margins to the bone by making all the extras standard? Perhaps the inventory savings are worthwhile, but DCFC will be wasted on most if the country. Now if I coulda had a blue i with steel wheels, manually-cranked windows, but a cold weather kit and CHAdeMO, that'd be mine, even if the alloys were only $500 more. An ES appeals to us cheapskates and adds panache to the SE that it will otherwise go without

I think consolidating down to one 'common' car lowers production costs - They can sell you a better equipped car with more features for less money than offering you a basic model and then adding options to it

The Japanese pretty much pioneered this concept, I think. 30 to 40 years ago, American car companies sold you a 'basic' car and then you added whatever options you wanted - Even heat was optional in some models, A/C, P/S, radio, power windows, power mirrors, different interior trims and certain paint colors were all extra cost options. Then Honda, Toyota, Mazda and some others began selling cars with most all of that 'standard' - They sold you a fully equipped car for much less than ordering the same thing piecemeal, so even though you didn't think you wanted A/C in your car, you basically got it for free and likely one day, you were glad you had it. About the only real options left now are manual or automatic transmissions

When you have 'option' cars, you've gotta build them a different way, keep track of what goes where, make sure your dealers get a selection of each based on what they're most likely to sell - When the cars you sell are all alike, things are much simpler and that saves them money

Don

 

[Vike]

I tend to think Mitsu compounded their errors with this price drop by eliminating options. Why slash margins to the bone by making all the extras standard?

As Don noted, it's cheaper to have fewer variations. Just about nothing in the SE package adds much to manufacturing cost; even alloy wheels aren't that expensive from Mitsubishi's point of view. Any savings in making an ES would be more than eaten up in the manufacturing hassle. Nobody would buy the ES unless it was notably cheaper, and there's really no margin left for that below this rock bottom "SE" price. All things considered, to give the relaunched i-MiEV its best chance it was best to price the SE as low as possible and chuck the ES. The original SE was intended to be a somewhat higher margin vehicle for Mitsubishi (remember it was ~$2k more) which was part of the reason that they pushed it harder (e.g., all reviewers got SE Premiums, a strategy that backfired when they would report it was nearly as expensive as a LEAF SV). That idea obviously didn't work, so on to Plan B.

Plus, I'm still betting that the infotainment system will be the most likely piece to fail or seem obsolete on my car in 10 years, which was a reason I opted for a base model the first time.

I think you're confusing the SE with the SE Premium. The SE radio has a more powerful amp than the ES and adds rear speakers, but that's it as far as I know. It's the Premium package that brought in the GPS, HDD, bluetooth, etc.

Big improvements they need to do:

I think you might be the missing the point. The 2014 model has incorporated about every "improvement" Mitsubishi could make without developing or designing anything new. There aren't going to be any more improvements, period. Due to be replaced by the EV version of a new "world car" being jointly developed by Nissan and Mitsubishi, the i-MiEV is just going to hold down the EV fort until then.

 

[jray3]

I think you're confusing the SE with the SE Premium. It's the Premium package that brought in the GPS, HDD, bluetooth, etc.

Indeed- I shall change my sig line to 'SE Premium'. ;-)
The savings through building only one options package is what I referred to as "inventory savings". Seems very old school to me, we're supposed to be in a brave new era of "Mass Customization" now, where each vehicle could be customized via online ordering. The primary problem with multiple options should just be when cars aren't preordered and are already in dealer inventory. That's when dealers have to trade cars back n forth to find the exact version that their customer wants..

 

[Vike]

The savings through building only one options package is what I referred to as "inventory savings". Seems very old school to me, we're supposed to be in a brave new era of "Mass Customization" now, where each vehicle could be customized via online ordering.

Good heavens, that's a blithely optimistic view of things. Nothing to do with reality, of course - don't confuse what you read in WIRED with what happens in the world of mass metal-bashing. i-MiEVs are built in Japan and shipped over and there's no customization to it. The sort of uber-flexible manufacturing you're describing is part of a brave new era that is not now (did you see any of the footage from the plant where they're built?), and Mitsu will save real money by making every i-MiEV nearly the same. And yes, at the other end of the pipe, they'll only have to deal with color (more or less) when fulfilling dealer orders. Nobody's come out and said it, but I'm pretty sure the new i-MiEV will be a "ship to order" proposition, with only selected dealers (self-selected, really) having inventory or perhaps even demos.

 

[Barbagris]

5.500 EUR down in Germany; final price 23790 EUR, with taxes.

http://www.auto-motor-und-sport.de/news/mitsubishi-i-miev-neuer-name-neuer-preis-8220426.html

 

[jray3]

we're supposed to be in a brave new era of "Mass Customization" now,.

Good heavens, that's a blithely optimistic view of things. ...I'm pretty sure the new i-MiEV will be a "ship to order" proposition, with only selected dealers (self-selected, really) having inventory or perhaps even demos.

Well Vike, of course my Pollyannic tongue was firmly in cheek, but then you go back and mention 'ship to order'. That's halfway to 'build to order'. Admittedly Mitsu and Nissan both screwed up their online reservation system for early adopters, but having each build tagged for a particular order should not be that difficult. Heck, the Karmann factory in Germany was dealing with far greater variety in larger numbers than on the iMiEV line, and that was in the 1950's! I've seen photos of the line, with various Porsche 356 iterations interspersed with Karmann Ghia Coupes and Cabriolets,as well as Beetle Cabriolets. Each body simply had a checklist attached to it with the specified options...

 

[Vike]

Well Vike, of course my Pollyannic tongue was firmly in cheek, but then you go back and mention 'ship to order'. That's halfway to 'build to order'.

Not nearly, though in fairness one must define one's terms. I didn't mean ship from Japan. Given the relatively small number of vehicles involved, I assume the best balance would be achieved by keeping i-MiEVs on lots at the east and west coast POEs, then shipping to dealers to fulfill customer orders. That would provide pretty quick turnaround while minimizing capital and space tied up at dealers with unsold cars. Otherwise, I don't think Mitsubishi's going to get many takers if dealers won't be allowed to sell the cars without stocking inventory - the numbers just haven't been there. Things can move to a more normal model if the numbers get somewhere closer to normal.

Speaking of "normal", one interim possibility might be to stock cars in Normal as well. i-MiEVs could piggyback on both shipments to the factory and from the factory to the dealers.

All of this assumes that Mitsubishi achieves their goal of surviving in North America, of course :roll:

 

[rmay635703]

$8995 for a new 2012 MIEV seems attractive, too bad I have to live in a very specific part of the country to buy one, also this price is only about $2500 less than a 2014 (if you compare apples to apples without the tax breaks to the starting MSRP of a 2014)

Hmm, might have to bribe someone in IL to own an 012 MIEV for a year so I can buy it from them for the $8995 later and they get a years worth of use for the cost of title and plates.

 

[jray3]

Hmm, might have to bribe someone in IL to own an 012 MIEV for a year so I can buy it from them for the $8995 later and they get a years worth of use for the cost of title and plates.

No bribes necessary, just seek out a late model used car. The last used i reported here sold for barely more than $10k. I'm disappointed that the used EV market appears less than robust, considering the number of tax-credit ineligible folks out there that could benefit. Of course, the manufacturers have created this by dropping new EV prices so dramatically. Automotive history averages 20% depreciation in the first year and 15% from that point on, but the USA-built LEAF price drop of approx $6k was about equal to the first year depreciation, making used car values immediately suffer normal depreciation on top of the tax credit and price drop discount. Hence we see 2011 LEAFs going for $15k and 2012 i-MiEVs for $10-12k.
The coming i-MiEV price drop is in the same 20% league, but early buyers have the solace of getting use of the cars for that first year and breaking even 'on paper' while newbys were stuck on gas for that much longer.

 

[gatedad11]

jray: I think that in regards to used car prices, and why the I-MiEV is not moving even at the reduced prices, the fact is that many of us do not know what the status of the batteries is or will be on the used "I's". We know that there is degradation, but what is the % of useful battery still left? I have seen and read figures suggesting 75% after 5 years, maybe less. How does that impact those cars with only 1 year of use(with, say 15,000 miles driven)? The rated range is 62 miles, so even 10% degradation drops us down to 56 miles. In cold weather, and with heater on, that could easily reduce the range to under 40 miles. Maybe the batteries won't suffer any significant degradation until after 40,000 miles, and even then maybe it will level out at say 60% of the original capacity. That would place the range in the low 40 mile mark(again, weather and heater use will adversely affect that). For a lot of people, 40 is still quite practical. And if the person has QC access, along with a Level II 240 EVSE at home or at work, might never see any adverse affects from the reduced range. I have been thinking of what I will do when it is time to turn in my car early next year at lease end. The 2014 model has a very attractive price, such that I'd even consider purchasing it(I believe that I would qualify for the Federal Tax rebate of $7500, plus maybe even the PA state cash rebate of $3000, if it still exists by then). But I still know very little about the usefulness of the car 5 years down the road. I am not talking about resale values, as I keep my cars until they just about die. No OEM seems to want to discuss making new replacement batteries available for owners, many of us want answers and (at least for now) we are not going to get any. A used I-MiEV with a new battery might be a great buy. It's also true that the price of leasing a new EV makes it more attractive (generally, in my opinion) than out right purchasing. More so for the unknown used EV.

Lou

 

[jray3]

Good Points Lou. One additional benefit can be business use of the vehicle. Besides profiting at the standard mileage rate rather than figuring depreciation and actual maintenance costs, selling the EV and taking a loss on the sale of business property held longer than one year (IRS form 4797) can dovetail nicely with another EV tax credit. (consult your advisor!)

 

[rmay635703]

Hence we see 2011 LEAFs going for $15k and 2012 i-MiEVs for $10-12k.
The coming i-MiEV price drop is in the same 20% league, but early buyers have the solace of getting use of the cars for that first year and breaking even 'on paper' while newbys were stuck on gas for that much longer.

Leafs bottom out at about $12k, the cheapest used MIEV I have found is near $13k, if I could find a used one for the price of the "new" after rebate I would be driving one now.

I would have to settle for a 2 seater think to get in that ballpark but buying from an out of business company is like buying my 1981 comutacar all over again.

 

[sandange]

When I bought my Miev I new I was an early adapter and did so in order to support and end encourage the EV industry.
I expected and hoped that the prices would drop to make EV's more accepted and available to more people.

Since I am a high mileage driver I also wanted to set an example that EV's are ready to be mainstream and can take every day use and (living in the north where I live) abuse.

I was not worried that I may have paid too much, since
I am planning to keep the car at least as long as the battery & drive train warranty are in force.
I calculated on a long term return (5 years break even compared to an equivalent ICE) based on fuel prices of
$ 1.09 L - $ 4.13 US gallon (Canadian dollars) ,
today gas prices here are
$ 1.35 - 1.49 L , (CAD) $ 5.11 - 5.65 US Gal

Warranty
The battery/drive train warranty from what I understood in good for
160,000 km 100,000 miles
or
8 years
With the understanding that a range loss of up to 20% during this time is acceptable.
Acceptable to me.

As for Resale
In my case how much am I gambling to resale an 8 year old car comparing an ICE or an EV with all that mileage on it.

With any luck the battery technology will have greatly advanced and come down in price so a battery upgrade at that time would be a contender.

Well ahead of the game so far.

 

[acensor]

Re the Smart electric:

Don wrote --
".....I thought about the Smart when I brought that up and was about to include the disclaimer that it's the smallest, lightest REAL car (you know . . . . something that can seat 4 and carry cargo) but I thought it would be obvious ."

There are a remarkable number of Smart electrics in our greenish/liberal town of Ashland Oregon.

What they are doing... at least around here ... is making consciousness of EV alternative much more widespread. People notice them even more than they notice our MiEV (and people do notice ours.)

I can understand the appeal at $25,000 list price (about $13,000 after rebate) or $140 lease. Cute. Makes nice "I'm REALLY green" statement.
Range about the same as MiEV.

But now with the price of a new MiEV about the same, no contest, MiEV wins hands down if people KNEW about MiEV and they were available at the dealers already.

Right off the bat the Smart is a twoseater with very little cargo capacity.
We can take two dogs (or two adults) in the back seat and still pack a remarkable amount of stuff in the hatchback.

The Smart is, from reports I read of test drives, a bit unstable feeling at high speeds (true most of us and most Smart-EV owners don't do MUCH high speed driving) --- if passing or passed by a truck wind blast wobbles it. Guess that's its narrow wheelbase.

Mitsu's biggest problem in the USA has been publicity.... lack of.
If they can get a bit of a handle on that, along with this price drop, the MiEV could become very competitive ..... being a very very attractive alternative to someone looking at a Smart-EV.

Alex

 

[user 1835]

Re the Smart electric:
But now with the price of a new MiEV about the same, no contest, MiEV wins hands down
Right off the bat the Smart is a twoseater with very little cargo capacity.
The Smart is, from reports I read of test drives, a bit unstable feeling at high speeds
the MiEV could become very competitive ..... being a very very attractive alternative to someone looking at a Smart-EV.

I've owned a Smart Electric Drive since November 2013.
My family are very happy with it.
I can't recall loving a car more than this one, with the possible exception of my 1996 Camaro Z28 (oh the joys of youth).

1. It's quick. Far faster to the 60kph speed limit on the roads I drive than my 300HP Mercedes SUV.
2. It handles nicely, like a large go-cart. The car is light, with the weight low down (battery under the floor) and the steering very direct.
3. If you only need two seats, it has lots of space for groceries and sports equipment.
4. In Canada, it was the least expensive electric car I could buy. Paid $19,300 all-in (taxes and rebates).

I drive by a Mitsubishi dealer on the way to work, and they have three iMiEV's, all of which are unsold since 2012. Meanwhile, the Smart dealer I went to had 100+ Smart ED's on order when I was on the 9 month waiting list.

There is truly something interesting about the level of attention and smiles I get when driving the Smart over any other car I've owned.

I'd have considered the iMiEV if I needed more seats, but I actually wanted the smallest car possible, to make it easier to park and organize my garage.

 

[Zelenec]

Every car is perfect for somebody. So is e-Smart for two. Great car!

 

[Malm]

I would love to have a Smart EV, but we are three so the i-MiEV was the answer.

 

[g4qber]

coincidentally the imiev & smart use the same tyre profiles
145 front 175 rear

I still like my imiev over the LEAF cos I can sneak through the gate at
http://www.recargo.com/sites/1747

I need to take a picture of this gate one day.

 

[Vike]

I'd have considered the iMiEV if I needed more seats, but I actually wanted the smallest car possible, to make it easier to park and organize my garage.

As with the ICE Smart itself, that is exactly the reason for getting a SmartED - it quite literally fits in places no other car can!

Aside from that, and perhaps the intriguing battery leasing option, it does not compare favorably with the i-MiEV for a number of practical reasons. I think this is what gets i-MiEV fans a bit annoyed - the attention, even praise, heaped on the somewhat impractical SmartED and even the compliance-only sham Fiat 500e and Chevy SparkEV, while the i-MiEV is somewhat derided, though mainly ignored. I realize that responsibility for this rests as much with Mitsubishi as the press (CR excepted - their hatchet job was reprehensible), but it chafes nonetheless.