EV Industry Faces Hard Times, Slowed Adoption
October 18, 2012 9:45 PM
comment(s) - last by
Cost, charging infrastructure and battery concerns are all reasons for the slowed adoption
Electric vehicles (EVs) are not taking off quite as expected, and if sales numbers don't start turning around, this could spell long-term trouble for the industry, according to a new report from
The Detroit News
Back in 2009, the Obama administration awarded $2.4 billion in stimulus grants for EVs and advanced batteries. The investment seemed promising, since gas costs continued climbing. Who wouldn't want an EV in the days of paying $5 per gallon?
The answer is, apparently, most people. Pushing EV adoption has been difficult for a few reasons, including cost (despite huge
federal tax credits and incentives
, EVs are more expensive than gas vehicles), slow deployment of charging infrastructure and battery worries.
Right now, the federal tax credit is $7,500 per EV in the U.S. President Barack Obama has proposed upping this figure to $10,000 in order to make EVs more affordable. He also proposed a $1 billion budget for speeding up EV deployment and charging infrastructure in 15 communities.
Despite these efforts, and the fact that EVs can lessen the U.S.' dependence on foreign oil and reduce global warming, there was one issue that likely scared many customers off: lithium ion battery problems.
One such instance was the
Chevrolet Volt's battery fire
in May 2011, where a
Chevrolet Volt underwent a series of tests at the National Highway Traffic Safety Administration (NHTSA) facility in Wisconsin. Three weeks after a side-impact crash test on May 12, the Volt caught fire while parked in the testing center.
Fisker Automotive has
recalled its EV batteries for the Karma
due to recent troubles, and the Nissan Leaf recently
experienced some issues with
the Arizona heat
2012 Chevrolet Volt plug-in and 2012 Nissan Leaf sales have been all over the map over the past year. In 2011, 7,671 Volts were sold while 9,674 Leafs were sold. From January to September 2012, Leaf sales dropped to 5,212 while Volt sales jumped to 16,348.
The Detroit News
, this is because the Volt has an auxiliary gas engine that kicks in when the battery is drained. To some degree, it still relies on gas, and the U.S. just isn't ready to take gas completely out of the equation yet.
Nissan hoped to sell 20,000 Leafs this year, but clearly, that is unlikely to happen.
A recent hit to the EV industry was
A123 Systems' bankruptcy filing
earlier this week. A123 made EV batteries and developed advanced battery technology.
There are some bright sides to the EV industry, though. Ford just added
60 new EV engineers
and doubled in-house battery testing, and
Toyota is talking plans for new EVs
The adoption of EVs may just take some time, and could likely get a boost in the coming years as the CAFE standards for gas-powered vehicles continues to increase. The Obama administration just recently finalized
the 54.5 MPG CAFE standards
for 2017-2025 model years.
The Detroit News
This article is over a month old, voting and posting comments is disabled
RE: EV's SUCK
10/19/2012 10:53:01 AM
Chicago isn't a big city?
RE: EV's SUCK
10/19/2012 11:11:58 AM
Well big only if you count people and sq. miles.
"I'd be pissed too, but you didn't have to go all Minority Report on his ass!" -- Jon Stewart on police raiding Gizmodo editor Jason Chen's home
Official: A123 Systems Files for Bankruptcy
October 16, 2012, 4:44 PM
Toyota Talks Plans for New EV, Hybrids
September 24, 2012, 12:52 PM
White House Finalizes 54.5 MPG CAFE Standards for 2017-2025 Model Years
August 28, 2012, 2:52 PM
Some California Residents Can Save $13,000 on the Purchase of an EV
August 24, 2012, 9:14 AM
Ford Adds 60 New EV Engineers, Doubles In-House Battery Testing
August 16, 2012, 4:18 PM
Hot Air? President Obama, G7 Pledge to Eliminate Most Fossil Fuel Use by 2100
June 8, 2015, 5:40 PM
Study Predicts Self-Driving Vehicles Could Rake in Billions
March 6, 2015, 8:34 AM
Dual-Motor Tesla Model S P85D's "Insane Mode" Shocks Passengers
January 28, 2015, 11:18 PM
2016 Cadillac CTS-V Packs 640 hp Punch with 200 mph Reach
January 23, 2015, 3:25 PM
BMW Testing Tech to Allow Users to Auto-Park, Summon Cars Via Smartwatch
December 16, 2014, 9:30 AM
Lamborghini Offers Up $6,000 Leather-Bound Android Smartphone
December 12, 2014, 3:12 PM
Most Popular Articles
Microsoft Band 2 Stays Focused on Fitness, Debuts Oct. 30, Priced at $249
October 6, 2015, 9:16 PM
Microsoft's HD-500 ("Display Dock"), the Magic Sauce Behind Continuum
October 6, 2015, 5:30 PM
Microsoft Lumia 950 and 950 XL Finally Launch, w/ Windows 10, Liquid Cooling
October 6, 2015, 3:35 PM
Legere Blasts Microsoft for "Bull***t" Snub of T-Mobile and Verizon
October 9, 2015, 3:02 PM
Apple's First Fixes to iOS 9 Land w/ iOS 9.0.1 Release
September 23, 2015, 6:11 PM
Latest Blog Posts
Sceptre Airs 27", 120 Hz. 1080p Monitor/HDTV w/ 5 ms Response Time for $220
Dec 3, 2014, 10:32 PM
Costco Gives Employees Thanksgiving Off; Wal-Mart Leads "Black Thursday" Charge
Oct 29, 2014, 9:57 PM
"Bear Selfies" Fad Could Turn Deadly, Warn Nevada Wildlife Officials
Oct 28, 2014, 12:00 PM
The Surface Mini That Was Never Released Gets "Hands On" Treatment
Sep 26, 2014, 8:22 AM
ISIS Imposes Ban on Teaching Evolution in Iraq
Sep 17, 2014, 5:22 PM
More Blog Posts
Copyright 2015 DailyTech LLC. -
Terms, Conditions & Privacy Information