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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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By masher2 (blog) on 12/4/2008 3:32:05 PM , Rating: 5
Most IC engines average less than 25% over their entire RPM range. A serial hybrid (rather than a parallel hybrid like the Prius) can approach 35%, by optimizing the engine for a narrow RPM range.

Coal-fire plants are nearer 40%, with the new ultra-high temperature varieties breaking 50%. You have transmission line losses, a small amount of loss from coulometric charging efficiency and battery leakage, but electric vehicles still win by a substantial margin on overall efficiency.

On the pollution aspect, coal is a much dirtier fuel than gasoline in general. However, coal plants have a much greater amount of pollution-control equipment than you can hang off a vehicle. So while electric vehicle emissions certainly aren't "zero", they're far below what a gas engine will produce...especially when one considers that much of the electricity is produced with zero-emission sources such as nuclear or hydro.


RE: I'll get excited about electric cars when...
By Dreifort on 12/4/08, Rating: -1
RE: I'll get excited about electric cars when...
By FITCamaro on 12/4/2008 4:19:05 PM , Rating: 5
Where the hell do you see him saying nuclear powered cars?

He says ELECTRICITY is produced by nuclear energy.


RE: I'll get excited about electric cars when...
By Dreifort on 12/5/2008 10:22:52 AM , Rating: 1
he hinted at zero emmission cars...such as nuclear power produces almost no emmissions.


By futrtrubl on 12/5/2008 1:58:28 PM , Rating: 2
quote:
especially when one considers that much of the electricity is produced with zero-emission sources such as nuclear or hydro


Re-read that. If you take it the way you did (really though, he said the some elictricity IS (ie currently) coming from those sources) he's proposing hydro powered cars too.


By morose on 12/4/2008 4:21:08 PM , Rating: 2
Nobody said they were going to try and put nuclear power plants IN the cars. Just that some energy they are being charged with is generated via nuclear or hydro powered plants.

Oh, and if you can manage a technology advanced enough to weaponize the nuclear fuel used in power plants to a level required to make a bomb outside of a military facility? I think the least of anyone's worries will be if you have the right paperwork. So unless your "concealed" "mini-nuke" is just intended to get some people sick, that's just FUD you're spreading there.


"So if you want to save the planet, feel free to drive your Hummer. Just avoid the drive thru line at McDonalds." -- Michael Asher














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