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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: dejavu?
By Dreifort on 12/5/2008 10:17:33 AM , Rating: 2
the whole purpose for Charles' tax idea was to push ppl away from gas cars and towards alternative options - like hybrids or total electric cars...or bio fuels, etc.

Charles may enjoy gas cars, this was just his thought out suggestion to increase "green" car sales. When gas sits at < $2/gallon...you're not going to see soaring "green" car sales. Base on studies over the past year - it was proven that $4/gal is curr the break point that caused Americans to rethink gas cars.


RE: dejavu?
By rcc on 12/5/2008 11:03:01 AM , Rating: 2
quote:
the whole purpose for Charles' tax idea was to push ppl away from gas cars and towards alternative options - like hybrids or total electric cars...or bio fuels, etc.


And, if this is necessary, it really underscores the fact that the industry is not ready. The vehicles are don't measure up yet. When they do, it won't be an issue, the transition will just happen.


RE: dejavu?
By Dreifort on 12/8/2008 2:43:06 PM , Rating: 2
Tom Brokaw is now jumping on (and promoting) the gas tax idea.

Another fine example of American media trying to influence our political system as well as free choice.


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