The auto business is full of competition and expenses.  For a while domestic automakers have been competing with imported automakers. Nissan Motor Company, a Japanese automaker, and General Motors, a domestic automaker (well known for its Chevrolet assembly), fight for the electric car title. Nissan’s Leaf and Chevrolet’s Volt compete for consumer business.

     Nissan announced the price for its new electric car, Nissan Leaf. It will sell for approximately $25,000, after a $7,500 government rebate. That's significantly cheaper than indicated for the price of the new Chevrolet Volt, a plug-in hybrid, at a base price of $32,500 after rebate.

     The Chevy Volt may turn out to cost buyers less than the $32,500 stated price. The government rebates have indicated that General Motors (GM) may be trying to get the price down. Auto officials say that might not be easy, since it appears that Nissan's cheaper version might be due to superior technology the automaker developed.

   The relative affordability of the announced price surprised some industry observers. Nissan officials say that breakthroughs in research on batteries, combined with a $7,500 federal tax credit for the battery-powered cars, has enabled the company to make the cars available at that price.

   The Leaf is a purely electric car that runs on its battery alone. The Leaf has no motor or gas tank like a traditional petroleum-fueled (gasoline/diesel) automobile. Unlike the Leaf, the Volt has a gas tank for the fuel-efficient, back-up generator for the Lithium battery.

   The Volt is a plug-in hybrid. The gasoline power kicks in when it runs out of charge. That fact provides the Volt with an advantage. After 100 miles in the Leaf, the driver must find a charging station. The Volt's battery lasts only 40 miles, but because it changes to gas, it can still drive much further after one charge. In fact, GM claims that the Volt can rack up hundreds of miles on a single charge because gasoline power will recharge the battery while driving.

   The Leaf requires a special charging dock, at a cost of $2,200, with federal tax credit covering half of that price. The Volt, however, can be plugged into a standard outlet. Of course, the Leaf can boast zero tailpipe emissions, which the Volt cannot.

   The Leaf will be available in certain markets as early as December 2011, arriving at approximately the same time as the Volt. At that time, the U.S. economy is still not expected to have completely recovered from its high unemployment levels, and consumers may still be apprehensive about going into debt for a new vehicle.

   When news of the Volt broke back in August 2010, many economists claimed that the price was still too high to be affordable for most Americans. A similar analysis was compared for the Leaf against the 2011 Corolla. According to Nissan officials, the Leaf would get around 100 miles per charge, which should cost "less than $3." That's approximately the current price of gas; the Corolla's gas mileage ranges around 30.5 mpg (the average of its city and highway rates) and its base price is $15,450.

    Auto sales state that both those estimates assume that gas doesn't increase in price more than electric power, which may or may not be true. If that happens, then fewer miles would need to be driven to make their purchases more cost-effective. For consumers who prefer the 100-mile limit between charges, the Leaf should work in their favor. But of course, Americans looking for a green vehicle might be willing to pay a higher price tag for the convenience that the Volt will provide through its hybrid flavor and domestication.