GM stops works on electric version of Opel Adam

Work has stopped on a planned electric version of the Opel Adam minicar due to high costs.

The project had progressed to the development of a working car using technology from the upcoming Chevrolet Spark EV minicar.

"It was a business decision," said Dieter Metz, Opel's chief engineer for the Adam. "We could not charge the customer the price needed to make it work on the cost side."

Opel sales and marketing chief Alfred Rieck said sales of electric vehicles are slow because customers are not willing to pay higher prices for EV technology.

"If you look at the technology that's available on the market today it's very expensive," he said. "You end up with a certain price of the car and consumers are not interested in it."

Rieck said only increased sales would drive down prices of EVs.

Opel currently sells the Ampera plug-in hybrid, a sister model to the Chevrolet Volt. These cars run on electric power but use a small gasoline engine to turn a generator for electricity once the battery pack is depleted.

Chevrolet plans to launch a Spark EV in the United States and other unspecified global markets starting in 2013.

Opel will begin sales of the Adam in January with prices starting at 11,500 euros in Germany, the equivalent of about $14,600 at current exchange rates. The Adam is aimed as a competitor to minicars such as the Fiat 500 and Mini.

The Adam will initially be offered with 1.2-liter and 1.4-liter gasoline engines. A version with a 1.0-liter turbocharged engine will go on sale later in 2013.

By Nick Gibbs- Automotive News Europe