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Electric Connect values could plunge

18th August 2011, Page 49
18th August 2011
Page 49
Page 49, 18th August 2011 — Electric Connect values could plunge
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Which of the following most accurately describes the problem?

BUYERS OF Ford’s Transit Connect Electric van can expect to lose £32,000 in the irst three years of ownership, according to CAP’s latest igures.

It predicts that the price of the van, a product of a joint venture between Azure Dynamics and Ford, will plummet from almost £40,000 new to just £8,000 at three years/30,000 miles and £1,525 at ive years and 50,000 miles. This extreme conservatism relects CAP’s scepticism that electric vehicles (EVs) will have a viable second life, mainly, but not exclusively, due to concern about battery life.

The Connect Electric is a signiicant entrant into the EV market as, along with the Renault Kangoo ZE and the Mercedes-Benz Vito e-Cell, it represents the irst wave of OEM-led product, with the potential for original engineering, large-scale production and economies of scale. So why has CAP valued only the Ford/Azure product? It argues that separate ownership for battery and vehicle gives dual liability issues for insurers, leasing companies and lenders. ■

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