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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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Duh
By InvertMe on 12/4/2008 4:09:18 PM , Rating: 4
Most people cannot remember past what they paid for their last tank of gas. In my town I can get gas for $1.58 a gallon. That's pretty dam cheap. So why would I think about buying an electric car now? I wouldn't. I would keep my current almost paid off vehicle.

That right there explains why electric cars are in trouble.

Now I feel like an idiot for posting in one of Mashers idiotic articles. Gah....




RE: Duh
By sigilscience on 12/4/2008 5:14:27 PM , Rating: 3
So you agree with the article, but think its idiotic anyway? Sounds like you're calling yourself an idiot.

Me, I think the economy is a bigger reason than low gas prices. No one has the money for expensive toys now. And that's what electric cars are at the moment.


RE: Duh
By adiposity on 12/5/2008 1:34:09 AM , Rating: 2
What is there to agree with? It is just a list of facts and figures, right? It's not like this is some sort of opinion article with an agenda, right? Right??? RIGHT???

Ok, I see your point.

-Dan


RE: Duh
By InvertMe on 12/5/2008 9:44:52 AM , Rating: 2
The topic and the article itself are fine. The problem is WHY he posted it. He did it to snub an emerging "eco friendly" technology.

Masher doesn't seem to understand that technology needs time to work out the kinks and mature before it will be known if it's going to be suited for the task or not.

I will agree with him that right now electric cars do not seem to be all that much more environmentally friendly or practical but after a few generations who knows?


RE: Duh
By thepalinator on 12/6/2008 12:37:57 AM , Rating: 3
I see. You can tell "why" people write articles without them telling you. Nice trick.

Do you use a crystal ball for this, or just mental telepathy through your tinfoil ear muffs?


"There is a single light of science, and to brighten it anywhere is to brighten it everywhere." -- Isaac Asimov














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