Electric cars will need lots of financial support - report

CNNMoney.com ^ | Thursday January 15, 2009 | Peter Valdes-Dapena, CNNMoney.com

[mtrott]

Electric cars have a big role to play in reducing the world's greenhouse gas emissions, but it's going to cost a lot, according to a new report. It could even push automakers into further trouble.

For electric and hybrid vehicles to achieve their environmental potential, the world's governments will need to step in with high levels of financial support for consumers and industry, according to a report by the Boston Consulting Group, a management consulting firm. And the cost savings in fuel won't be nearly enough to provide the incentive without that government cash.

[mtrott]

I think the economics of the whole thing are even worse than the article portrays. For example, the article assumes the price of oil at $150/barrel. What if that doesn't happen? These new technologies will then be even harder to sell to the average consumer. The bad thing about that is that myopic enviro and governmental types will just propose even more government spending to try to force the market in that direction--read, even higher taxes and more damage to the auto industry.

[montag813]

These new technologies will then be even harder to sell to the average consumer.

Sell? You will be required to buy it, or else pay through the nose in "carbon impact" taxes for your F150 or other government non-approved vehicle.

[LauraJean]

I have read about “alternative” fuels since the 1970s when I would read Popular Mechanics Popular Electronics or Mother Earth News faithfully. They all told me it was just around the corner.
If any of these technologies were ready there would be no problem getting investors to put money in the product.

It’s like a horse race is so bad, I wouldn’t even use your money to bet it. (A common saying at the track)

It’s too bad the government has no problems “betting” with our money.

[reagan_fanatic]

For electric and hybrid vehicles to achieve their environmental potential, the world's governments will need to step in with high levels of financial support for consumers and industry

I believe the Soviet Union did the same thing with many of its industries.

Let's see, what did they call that system of government again...

[xcamel]

What they are not telling you...

All your gas and highway taxes will be paid by you through your power bill.

[MarkL]

I especially love the CA state mandates that auto manufacturers have a significant number of Zero Emissions (i.e. electric) vehicles on the roads in the coming years.

This from the state known for their “rolling blackouts.”

I honestly believe that some research needs to be done on the “thought process” of leftists and dems. I find it hard to believe that they can possibly come up with these sort of ideas without their heads exploding.

Mark

[Citizen Tom Paine]

New technologies when they come on line are expensive. This is the fly in the ointment of the green technology strategies. Check out the price of solar cells per kilowatt hour, or windmills.

The environmental anarchists may become interested enough in the problem to take a science or, Lord forbid, an engineering course. They might learn what cost/benefit even means and perhaps how to go about calculating it.

[Dr. Bogus Pachysandra]

Pelosi and Kali are endorsing this car:
http://tinyurl.com/79yj9r

[Sacajaweau]

Then there's providing the infrastructure on a journey. It may cost one price for a home plug in (which I'm sure will carry an extra tax)...

Of course, there will be a ridiculous price at a road stop (with the ridiculous tax) because, just like the phamaceutical industry, you have to pay for the development costs "behind you". We are so scr****.

[upchuck]

the world's governments will need to step in with high levels of financial support for consumers and industry, according to a report by the Boston Consulting Group

In other words, this is fake technology. Can't be supported on it's own.

[taildragger]

Add to that a accounting course and their heads would explode at their own folly. :-) .

Tangential to this is the lack of an energy policy. How can you target a market as an automaker and invest for powertrain options when fuel cost are so variable, and the supply is from unreliable sources?

We need energy from the U.S., for starters, but the Eco-Weenies are going to default us into higher priced fuel and drivetrain options that violate the Kelly Johnson "80 - 20" rule....

Beam me up Scotty, no intelligent life in the House, Senate or the Green Movement....

[chris_bdba]

Electric cars as hey are now will only ever be practical in the cities. In rural area going 20-30 miles between charges is impractical. Besides since they want to wipe out coal which provides 70% of our electric in this country, while wind will only take care of about 20% of that where in the world will the other 50% come from to make up for wht we use now. They are against nuclear so where is the added electric going to come from the electric fairy?

[VRWC For Truth]

Where's the assessment of the lifetime energy cost of electric cars? Since the market hasn't accepted that them, I'd wager they use more energy than gasoline powered cars. Must be those evil corporations know the truth, and Liberals are dupes.

[depressed in 06]

These are people that know history only since the last commercial and technology, if I push this button the television comes on. Forget the first law of thermodynamics that you can’t get out more energy out than you put in. That’s a no brainer, dude.

[popdonnelly]

“It’s too bad the government has no problems “betting” with our money.”

Yeah, the government bets on losers without worrying about the consequences.

There are logical reasons why the World has built tens of millions of gasoline-powered cars.

[VRWC For Truth]

There are logical reasons why the World has built tens of millions of gasoline-powered cars.

Liberals are smarter ... ROFL Just ask them.

[roadcat]

What they are not telling you...
All your gas and highway taxes will be paid by you through your power bill.

In my area (SF Bay Area) we get penalized heavily for using more electricity over baseline (what we used in this month compared to 12 months prior). It's an escalating tier penalty, multiple fees for 150% over plus 200% over etc. etc. Use a little extra electricity and your bill can be 300% of normal cost.

There's not enough electricity to go around in order to recharge electric cars at home. Unless you're very rich and can pay the fines.

[naguszed]

I’ve come to view the development of alternative fuels as a national security project.

Even if it doesnt work or isnt profitable, the development should have the same effect on the OPEC countries high oil price ambitions as the “star wars” projects of the ‘80’s had on the Soviets.

[truthguy]

This is an incredibly stupid article. Electric Cars have always been feasible EXCEPT for the batteries. Electric Motors are far more efficient than Internal Combustion Engines. That's why they are used for Commuter Trains, Diesel-Electric Trains and the like.

With the advent of Lithium Ion batteries it MAY be feasible to have Extended Range Electric Vehicles like the Chevy Volt and other EREV's. Yes the first Chevy Volt and their competitors will be expensive and won't make sense if oil is below about $80/Barrel. But the first computers and flat panel TV's were also very expensive and only the wealthier people could afford them. As the costs of development were realized and the cost of production is scaled up, the EREV's will make economic sense. If we don't pursue this solution, then what is the future of personnel transportation in the US? Do we just continue with the ICE forever and forever? Do we never even try another approach? What alternatives do the writers of this article suggest? Yes this is another dumb article written by not so smart people who offer no other alternatives.

[rogue yam]

Electric cars have a big role to play in reducing the world's greenhouse gas emissions, but it's going to cost a lot, according to a new report.

Our problem is that our political system is in the hands of people who say things like this as though they are not completely irrational. Do electric cars avoid carbon emissions more efficiently than other options? Why would anyone ever even ask?