Could Tomorrow’s Blue Light Special Be an Electric Car?

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The Deal

Kathleen Ligocki, CEO of GS Motors, sells electric cars in Mexico and sees huge potential for doing the same throughout the rest of the Americas. She envisions them being sold through discount chains like Kmart, Wal-Mart, Sam's Club, and Costco.

Since Sam's Club and Costco both have vehicle "discount" structures already in place (through established automotive dealers), it's not too much of a stretch. The real question is whether people would be willing to purchase a full-sized electric car from a discount chain at all.

I Wonder...

The stigma of the cars being made in China might not help things. However, analysts are split on the issue of whether discount EV sales through chains like Wal-Mart and Kmart are really viable. Some believe it will come to nothing while others think it will revolutionize how cars (especially EVs) are seen in the U.S. and Canada.

Looking at it another way, the number of standard vehicles being sold through Sam's Club and Costco discount venues is minuscule compared to the number of members both clubs report and the number of cars sold nationally. We're talking less than a tenth of a percent here. That tells me that people tend to think of a new vehicle (on the order of a car) to be kind of too big a thing to trust to mere club memberships.

On the other hand, with their lower price point, NEVs and smaller LEVs could easily overcome that kind of stigma and become viable. After all, if you're going to spend $10k on a neighborhood electric or $6k on a large-sized electric scooter, why not go through your discount club to save a few bucks?

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Aaronicus

I am a professional writer with interests in just about every area of knowledge you can name. I live in Wyoming and enjoy the outdoors and work with... more »

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