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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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Asher wrote an electric car story?
By thepalinator on 12/4/2008 3:36:49 PM , Rating: 0
My head started to hurt, until I realized it's just a sneaky way to slam electric cars.

By MozeeToby on 12/4/2008 3:54:50 PM , Rating: 3
"while there are a lot of tire kickers", few will actually commit to a purchase.
From the salesman himself. That should say a lot about how people see electric cars.

People want to like them, enough that they visit the dealer to check them out. When they get there, they are found lacking; too small, too short ranged, and too expensive for what you get. Don't get me wrong, I love the concept of an electric car and I'm sure that in ten years, at least one of the two family cars will be electric. But right now, they just aren't worth the investment, even if gas had stayed at $4.50 a gallon.

RE: Asher wrote an electric car story?
By InvertMe on 12/4/08, Rating: -1
By dever on 12/4/2008 5:10:54 PM , Rating: 2
All articles are written more or less from the perspective of the author. While some claim to be objective, that claim is typically laughable.

I happen to appreciate Asher's perspective because it's uncommon among in the media world. The fact the his article is a fairly accurate representation seems to be lost on you. The typical electric car boot-licking among the media is not representative of the broad consumer base... and the sales verify this.

RE: Asher wrote an electric car story?
By reader1 on 12/4/08, Rating: 0
By whiskerwill on 12/4/2008 8:42:33 PM , Rating: 3
Actually I believe he's said he works in research, and has a number of patents himself.

RE: Asher wrote an electric car story?
By Reclaimer77 on 12/4/2008 7:22:51 PM , Rating: 3
My head started to hurt, until I realized it's just a sneaky way to slam electric cars.

Yes because the realities of an industry are " slamming " ?

By grenableu on 12/5/2008 5:05:17 PM , Rating: 2
Well, none of the major media sources will dare report how bad electric cars are doing right now. Whenever you fail to toe the party line, you're "slamming".

"Google fired a shot heard 'round the world, and now a second American company has answered the call to defend the rights of the Chinese people." -- Rep. Christopher H. Smith (R-N.J.)

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