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Cars Compliance Cars: Fiat 500e, Honda Fit EV

Published on July 22nd, 2013 | by Zachary Shahan

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Compliance Cars: Fiat 500e, Honda Fit EV

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July 22nd, 2013 by Zachary Shahan 

This article was originally published on EV Obsession.

Something that I think not many people are aware of is that some green cars are only produced because of California’s strict laws aimed at greening the automobile industry. Unfortunately, while some automakers get the underlying point of it all and eager to lead the way into the automobile market of the future (i.e., the electric vehicle market), some are like old dogs stubborn in their ways and just produce EVs in order to satisfy California’s green car laws. They produce a minimum number of cars, and they only offer them in very select markets (e.g., California), and sometimes not even to sell, but only to lease. And, in the worst scenarios, they won’t even let consumers buy the cars from them at the end of the lease period, but take them back and likely trash them (think GM’s EV1).

The common name for such cars is “compliance cars.” GM doesn’t actually seem to be “in the compliance car business” these days — its Chevy Volt (or a relative of it) is sold around the world. It is sold in large numbers. And GM is very proud of the car. The Chevy Spark EV, about to hit the roads, also seems to be aimed at real sales, as GM cut its initial price to just lower than the price of the market-leading Nissan Leaf. Many are very excited about the car, and I think it could see very good sales. We’ll see how many GM produces.

However, the Honda Fit EV and Fiat 500e have been called out as compliance cars, and it looks like they really are. The Honda Fit EV is only leased, and it took a loooong time for Honda to offer it on the East Coast at all. Despite very low sales, Honda announced in early June that it was sold out. It also isn’t exactly the most competitive EV on the market. All the signs of a compliance car there. Oh yeah, plus, it is created out of the design of a gasmobile, with electric insides simply replacing the gasoline engine — another clear sign of a compliance car.

Green Car Reports adds:

When Honda cut the lease price on the Fit EV, it was quickly swamped with orders–and had to apologize for the long waits.

Honda: pace won’t change

But Steve Center, Honda’s vice president of environmental business development, said in June that the company’s pace of Fit EV production for the hand-built electric conversion won’t change.

Each month, Honda’s U.S. distribution arm will continue to receive 40 to 50 Fit EVs and allocate them to dealers based on the demand at the time.

That’s because Honda assembles the hand-built electric conversion at the same low-volume factory that builds its FCX Clarity hydrogen fuel-cell vehicle.

Parts for those cars are ordered in very small batches, and there’s little ability to “ramp up” production as you might on a conventional assembly.

Each of Honda’s 200 electric-car-certified dealers will get one Fit EV at a time, potentially meaning one every four months.

If you’re in fourth position on the waiting list, that means you might wait more than a year for a car.

honda-fit-electric-vehicle

The Fiat 500e is actually a very cool little EV that Fiat has been advertised surprisingly well. It goes for a competitive price and has garnered a lot of positive attention. Unfortunately, however, it has only been offered in California and it is already sold out despite the fact that none have been delivered to owners yet — in other words, not very many have been produced. Very sad. It’s a beautiful little car, and from what I’ve read, great to drive. And Fiat really did advertise it well:

fiat 500e sexy

Interestingly, Green Car Reports also noted that the Fiat 500e is bringing in a lot of new buyers to the brand. Jason Stoicevich, Fiat’s new US chief, said that 80% of the electric car’s buyers and lessees are new to Fiat. Nonetheless, despite that and the car being essentially sold out through the end of the year, Fiat has no intention to ramp up production.

Personally, even if you like the Honda Fit EV or Fiat 500e (I love the 500e), I’d recommend against buying them simply to boycott the companies’ lame EV plans. Of course, that may justify them, and that may not really matter anyway, since the companies are producing so few cars that they have no problem finding buyers. But I’d still feel much better about giving my business to Nissan or Tesla.

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About the Author

spends most of his time here on CleanTechnica as the director/chief editor. Otherwise, he's probably enthusiastically fulfilling his duties as the director/editor of Solar Love, EV Obsession, Planetsave, or Bikocity. Zach is recognized globally as a solar energy, electric car, and wind energy expert. If you would like him to speak at a related conference or event, connect with him via social media. You can connect with Zach on any popular social networking site you like. Links to all of his main social media profiles are on ZacharyShahan.com.



  • Dr Obnxs

    Oh, and you posted that you wanted to read a review…. Check here for what I wrote about flogging the car up by where I live….

    http://www.fiat500owners.com/forum/66-fiat-500e/12938-after-week-ownership.html

    • Bob_Wallace

      Good writeup.

      (My first new car was a 1969 124 Spyder. Second most fun to drive car I’ve owned, after my RX7.)

  • Dr Obnxs

    Who really cares if it’s a compliance car or not? Supply side or demand side is a debate for armchairs. Fact is, the car is economic, and compelling as it shows that one can have an electric car that is both stylish and inexpensive. End result is that more cars are on the road, other manufacturers lowered their price to compete, Sergio complains about California ZEV mandate, more people are supportive and USING the chargers that are in public places, and the mindset of the masses slowly changes. But I gotta say, boycotting ANYONE who offers a EV is shooting your nose to spite your face. No matter the motive or model that FIAT has or doesn’t have, the cars are hear and for sale. The best thing one could do to counter Sergio’s anti EV stance is to show him that he could sell a lot more than he’s offering now, and that offering them ups the sales of the cars he does care about (which is a pretty compelling little economy car itself!)

  • sweetelectricity

    Honda Fit EV would be perfect for me, a NYC resident with a garage and a 54-mile round trip commute. I’m sure there are thousands of people in my neighborhood (Queens, population 2.2 million) who would buy the car if they saw that it worked for me. Why is Honda so cautious about supplying more to New York? I’m third on a waiting list, and have been waiting for more than a month.

    • http://zacharyshahan.com/ Zachary Shahan

      It’s simply not producing many Fit EVs. So dealers have to wait ages to get the cars for customers who have reserved them. Honda is simply being lame about the EV transition.

      • http://zacharyshahan.com/ Zachary Shahan

        from the article above: “Each of Honda’s 200 electric-car-certified dealers will get one Fit EV at a time, potentially meaning one every four months. If you’re in fourth position on the waiting list, that means you might wait more than a year for a car.”

  • Cam

    They know how to sell the car, I wouldnt have though about buying one but I could be tempted. They probs come to England in 2020 though lol

    Tradesure Motor Insurers

  • Matt

    To paraphrase the FORD CEO, “we will make better cars (safer, better mpg, EV) only if forced to by the government”. So yes raising the fleet required average a lot faster (given EV’s great ~mpg), and you will see fast results. If city, go to the “user fee” to drive in city unless EV then ..
    Yes California is out front, and it would be wonderful if other join in.

    At some point, not to far in the future we will reach a tipping point. And company’s that don’t provide a valid EV option will find they have to scramble to catch up.

    • Bob_Wallace

      California continues to go where few other dare.

      They follow along later…

  • Marion Meads

    Told you so Bob_Wallace, compliance cars are most of them.

    • Bob_Wallace

      Most of what?

      Selling electrics:

      Tesla, Nissan, Toyota, Mitsubishi, BMW, Ford, BYD, Renault, GM, Volvo

      Producing compliance cars:

      Honda, Fiat

      Who else should be on the list?

  • Wayne Williamson

    Zachary, I think you hit this one on the head. So sad that they can produce something that will sell but are unwilling to do so. I’m just glad there are other brands to chose from.

    • http://zacharyshahan.com/ Zachary Shahan

      It’s a true shame.

    • DaveINLA

      Wasn’t one of the points that the Honda Fit EV wasn’t selling. Or to be more specific, not leasing? Honda made “the offer”: lowered Lease to $259/mo, paid for Comprehensive/Collision Insurance, and gave away the Charging Station. That is when they became backordered.

      Also, what’s wrong with Honda being conservative and trying to get the EV Market right? They are not one of the two largest Automotive Manufactures like Toyota & GM in the US/Worldwide.

  • Bob_Wallace

    The good news takeaway here is that California is forcing car companies to design and manufacture EVs.

    Even if the EVs from some reluctant manufacturers are few in number they will be able to get into the game quickly as the market grows.

    If someone markets a battery with 2x the capacity of current EV batteries demand will drag Honda and the other companies off the fence.

    • Marion Meads

      Out of the horse’s mouth itself cometh… On Bob’s demanding proof from me that most of these are compliance cars.

      • Bob_Wallace

        Refresh my memory. What was the exact context of that discussion? Perhaps direct me to the exchange….

    • http://zacharyshahan.com/ Zachary Shahan

      Definitely the positive spin from this story. It is a huge positive.

  • eject

    I don’t agree with boycotting them. Let at least the dealers know that they are loosing business. However, the FIAT 500 is in my opinion a car that brings new customers to the brand anyway. I would never have considered buying a FIAT, the 500 looks really neat and different to what else is on the market.

    • Bob_Wallace

      I also like the Fiat’s look. I really don’t like the looks of the LEAF or the Spark. Or the Mitsubishi.

      The Ford Focus is a little more acceptable to me.

      The market needs a variety of body styles. Tastes differ.

      • http://zacharyshahan.com/ Zachary Shahan

        Definitely. I love the look of the Leaf, but otherwise, just really like the look of the 500e. (Of course, excluding Tesla, which is in another class right now.)

    • http://zacharyshahan.com/ Zachary Shahan

      You mean the standard 500? In any case, with the Fiat 500e bringing in such a high % of new customers, it’s ridiculous that they aren’t building more.

  • Loren McDonald

    I went to the Fiat dealer in Concord, CA yesterday (July 21) hoping to check the 500e out … the dealer said that delivery keeps getting delayed. Each month they are told you will get one next month … he was hoping to receive “1” in late August. He said he had no idea how many he might actually get – 1 at a time most likely, perhaps as many as 4 at a time down the road. He said there was a lot of interest in the car. He also said (after asking) that the car parts are made in Italy, but then final assembly happens in Mexico.

    • Chris McNamara

      I got my Fiat 500e on Friday from Berkeley. Love it. I was one of the first to order in Nor Cal and I still had to wait longer than expected. The dealer said they were still taking orders and that the “sold out” story was an offhand comment from an executive at Chrysler/Fiat that was mis-reported or mis-interpreted. Berkeley Fiat is still taking orders and the sales manager said they would deliver on the orders. I don’t know the actual story. But if you are interested in the Fiat, I would call a Fiat dealer and see if in fact they actually are sold out and what the wait time is. Don’t just assume they are all sold out.

      • Loren McDonald

        Chris – glad you got your 500e. The Concord dealer was not taking orders – he mentioned that other dealers were but that without any “VIN” numbers being assigned he didn’t think it was right to take orders. He mentioned that some dealers were even taking deposits … but again was against that practice. I’m not ready to buy … was just hoping to see one in person, maybe take a test drive.

        • Elyse Eisenberg

          I called Fiat of Santa Monica about three weeks ago to see if they were really sold out. They said no and had orders for 49 cars so far. I put my deposit down saying I needed a car as soon as I got back to town (July 31, am in Italy renting a 500 – not electric and loving it). They’ve already cashed my deposit which companies usually don’t do until you are actually getting your order, so we’ll see what happens next week.

          • Wayne Williamson

            Elyse, If you can remember, post back here with how it goes..Thanks, Wayne.

          • http://zacharyshahan.com/ Zachary Shahan

            Hopefully we can get 1 or both of them to publish a review. :D

          • http://zacharyshahan.com/ Zachary Shahan

            Ha, fun story. Happy to feature a review of it if you’re interested. zach@importantmedia.org

      • http://zacharyshahan.com/ Zachary Shahan

        Thanks for the info. And congrats on getting one early! Looks like a great car. Happy to feature a review of it if you’re interested. zach@importantmedia.org

    • http://zacharyshahan.com/ Zachary Shahan

      Thanks for the extra info. Ridiculous. (Regarding the parts: interesting.)

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