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Electric Cars at a dealership in Los Angeles  (Source: LA Times)
A bright star just months ago, electric car industry goes into dramatic reverse.

In what many will find a surprising turn of events, electric car sales have plummeted this year, plunging the fledgling industry into financial turmoil. Many manufacturers and dealers are cutting back operations; some have shut down entirely. Others are calling for government action to prevent the industry from wholesale collapse.

Many dealers understandably don't want to discuss declining sales. When asked how well their cars were selling, a spokesman for Electric Vehicles, Inc, in Tampa, tersely replied "no comment", and hung up. A dealer in Texas didn't answer the phone at all. Another in California had its number disconnected.

EPower, a retailer selling electric cars in Illinois, Iowa, and Missouri, has only sold two cars in the past three months. President Bruce Wood tells DailyTech that, "while there are a lot of tire kickers", few will actually commit to a purchase.

MCEV, the largest electric car dealer in the Pacific Northwest, has seen sales decline to 1-2 vehicles a month, down 80% from earlier this year. Buzz Duell, General Manager of MCEV, blames not only gas prices, but the economy as a whole. "No one wants to spend money right now", he says. Not only are individual buyers cutting back, but corporate and government sales -- which make up a large percentage of MCEV's revenue -- are also being impacted.

Duell expects a recovery in sales to take at least two years.

Tim Sankey, owner of an electric car distributor in Kansas concurs. "It will take time to build a customer base", he says, "but people haven't forgotten about high gas prices". Sankey hopes for a rebound next year.

Sales declines aren't limited to the U.S. In Britain, sales of electric cars have dropped a shocking 58 percent this year. For the first ten months of 2008, a total of only 156 vehicles were sold in the country -- nearly all of those confined to London itself. The announcement came just two days after the nation's Committee on Climate Change predicted electric car sales would increase substantially this year.

Tesla Motors, maker of the all-electric Tesla Roadster, announced a round job cuts last October, and said that plans for a mass-produced high-volume electric car would be "impacted" by the grim sales outlook.  Rumors suggested job cuts could be up to half the company's work force, a figure Tesla officially denied.

Larry Shriner, Chief Financial Officer of Zenn Motors, an electric car manufacturer based in Canada, says government "needs to get engaged to give the industry some momentum". Shriner doesn't necessarily favor gas price supports, but he says government needs to ensure "people stay focused" on the benefits of electric car technology.

Sales of traditional cars have also declined, but not as sharply. According to tracking company Autodata, sales are down 37 period from the same period last year.



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RE: I'll get excited about electric cars when...
By Entropy42 on 12/4/2008 3:06:44 PM , Rating: 5
quote:
And while I'm not an expert, I believe that the pollution from the power plant is worse than the exhaust from my internal combustion engine.


You are not an expert. That is wrong. Electric cars aren't truly "carbon free", but they emit much less CO2 than a standard car, even if charged with power produced by a coal plant.


RE: I'll get excited about electric cars when...
By Some1ne on 12/4/2008 4:52:07 PM , Rating: 2
Pure electrics were never the answer. There's just too many issues that are inadequately dealt with at the current time, and that still are not even close to being solved. These include the limited range, the time it takes to fully recharge, the cost and hassle of installing specialized outlets if you want a more rapid charging time, the hassle of having to remember to plug the thing in every time you park it for the night, and the lack of high-speed charging stations to enable longer roadtrips. Hawaii is going to try to solve the charging issue by just swapping out entire battery packs at "refueling" stations, which is just crazy. Fully electric vehicles are just not even remotely viable at the present time.

The way to move forward is to continue optimizing the gas/electric hybrid designs that have proven to be successful in the near term, and to move to a viable non-fossil-fuel source (hydrogen, biofuels, etc.) in the longer term. Pure electrics do not factor in at all.


By cmdrdredd on 12/4/2008 11:00:02 PM , Rating: 2
quote:
Pure electrics were never the answer. There's just too many issues that are inadequately dealt with at the current time, and that still are not even close to being solved. These include the limited range, the time it takes to fully recharge, the cost and hassle of installing specialized outlets if you want a more rapid charging time, the hassle of having to remember to plug the thing in every time you park it for the night, and the lack of high-speed charging stations to enable longer roadtrips. Hawaii is going to try to solve the charging issue by just swapping out entire battery packs at "refueling" stations, which is just crazy. Fully electric vehicles are just not even remotely viable at the present time. The way to move forward is to continue optimizing the gas/electric hybrid designs that have proven to be successful in the near term, and to move to a viable non-fossil-fuel source (hydrogen, biofuels, etc.) in the longer term. Pure electrics do not factor in at all.


I agree, and when is my free car coming? You want me to drive a "clean" car? Then give me one. otherwise I'm happy with what I got which actually looks decent. I will not drive something that looks like a power wheels.


By phazers on 12/5/2008 12:49:03 PM , Rating: 2
It's primarily an energy-density issue. Current battery technology just isn't capable of storing enough KWH per kilo per $$ to be worthwhile, except perhaps for a very limited range urban-only vehicle. Ditto with hydrogen - I recall reading in Scientific American that it would take a 30,000 psi storage cylinder to compress hydrogen to the same energy density per pound as gasoline. Imagine what that would do in a wreck. And of course this 30KPSI cylinder would weigh several hundred pounds, as opposed to maybe 30 pounds for a 15 gallon steel gas tank.


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