Can EVs save the US auto industry?
More expensive EVs, or cheaper, smaller vehicles?Since the bailout was announced this morning, I've watched quite a bit of CNBC coverage on the subject. And, both GM's CEO and the Michigan Governor, have now claimed that EVs and battery-powered vehicles are the key to turning the US auto industry around.
Is that believable?
Recently, the CEO of Valence Technology, a US-based battery maker said that Europe was far more prepared for electrification than the US.
Other reports have indicated that the battery manufacturing industry in the US is just shy of dead, and resurrection won't be easy, even if massive investments are made. Whom will the US industry rely on for batteries for this EV revolution? Our competitors?
Even if a battery industry can be developed, a bigger question might be, when will EVs be profitable? Likewise, will consumers want EVs and plug-in hybrid vehicles if they cost $30,000 or more, especially if next year's economy is just as bad as this year's economy?
Crushed pension funds and 401k's, foreclosure and negative home value, job insecurity - these conditions might stick for a few years, and, even when resolved, these conditions might stick in consumer's collective consciousness for many years after.
Add that to recent findings that suggest that America's love affair with the car has shifted, and maybe Americans are finally ready for very different forms of transportation. Certainly, that doesn't mean that Americans won't want cars, but maybe we'll want much cheaper, smaller cars or just far, far less cars - another circumstance that will kill Detroit profits regardless of electrification.
Can EVs really save the US auto industry? Or has EV become a buzz word used for placation and distraction?
Labels: electric cars, Hybrid Vehicles



5 Comments:
What are the costs associated with the care and maintenance of an ICE? Since I take care of at least five, I consider myself an expert. Let's see, with a pure EV I don't have to:
1. Change the oil
2. Perform tune ups
3. Change the air filter
4. Change the radiator fluid
5. Change the serpentine belt
6. Change the alternator
7. Change the oil filter
8. Change the muffler
9. Change the exhaust manifold.
10. Change the fuel filter
Well, you get the idea.
Over the life of the ICE, these costs are staggering. Over the life of the car, these costs easily make up for any premium you would pay for an EV.
I know this, the majority of the public doesn't. So yes, give me an EV today with a premium price tag because later on down the road, I know that I will not have to:
1. change the oil
2. change the air filter
...
The article you linked to about much stronger European movement to EV's actually supports the thesis that the key for the US auto industry is EV's. If for no other reason, they will need them to compete for sales in Europe!
For a host of reasons I've written in previous comments today, I do believe that EV's, well EREV's or PHEV's, are the key to any sort of auto industry in the US in the long term. And if that is the long term need, then best to get on with it today as much as possible.
I think a US investment in regular Hybrids is unfortunately not a winner. We've lost that market already, I figure. Japan will always beat us on NiMH batteries at this point.
It's frustrating to see all the effort going into ultra high tech EVs. I want a simple, lead acid battery car with a minimum range of around 25 miles, which I've heard would be suitable for over 15% of the market. We have a mature battery industry which has been serving this market (city delivery, golf cart, fork lift)for decades.
Roy, with the limited amount of lithium on this planet, you may get your wish:-)
http://newpapyrusmagazine.blogspot.com/
Indigo Incarnates
It seems to me that if EV cars become commonplace, the government is going to have to get VERY strict about recycling. Lithium and nickel aren't exactly the most plentiful metals on the planet. But it can be manageable if done right. No battery pack should ever hit the landfill -- ever.
As far as Chrysler goes, I think it's a case of "too little too late". It cracks me up how they announce their intention to be the King of EVs within 24 hours of suspending all production operations indefinately.
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