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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: omg, shock horror!
By werepossum on 12/5/2008 12:38:34 PM , Rating: 1
Things like warmer or colder water temperatures in the Pacific cause a shift in the weather patterns on the west coast of the USA, and this is a well established fact. Now, you can tie this into what was said about how global warming CAN(I did not say it does) cause lower temperatures in some places.

Think of it this way, if a normally sunny place like San Diego were to suddenly lose that sun and be overcast 3 out of 5 days, the temperatures WILL drop. This drop in the long term would have secondary effects, which include the drop in temperatures around the affected area.

The key is long term vs. short term here. What we are seeing in some areas MAY just be a momentary blip, but you need to look at things like the effect of even a two degree drop in temperatures in the Pacific Northwest, as well as what it does to the areas around it.

While it may be possible that global warming can cause lowering of temperatures in some areas, it is undeniable that absent any unnatural forcing, periods of hotter and cooler weather, both localized and global, will occur. Climate varies, and has varied for far longer than man has been around. Therefore if you wish to claim the current cooling trend is caused by manmade global warming, you need very good, repeatable, testable proof because these same cycles occur even absent man . This is doubly true if the cooling is an overall average rather than localized. The same principle is true of anything; if you wish to use absence of a thing as evidence of its existence, you have a big hurdle ahead. This becomes even more true if you claim an urgent need to seize power over society based on the threat of CAGW.

RE: omg, shock horror!
By thepalinator on 12/6/2008 12:39:29 AM , Rating: 2
Not sure why you got rated down. You're making perfect sense. Guess some people can't handle the truth.

"I modded down, down, down, and the flames went higher." -- Sven Olsen

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