A struggling economy seems like the perfect backdrop for green cars to flourish. After all, consumers are looking to save money and electric cars in particular are cheap to buy and cheap to run. However, speculation is mounting that the cash crisis in Detroit could actually kill the electric car in its tracks.
One of the key figures in Detroit’s green car push has been the Chevy Volt – a rechargeable car that General Motors (GM) has designed to run for up to 40 miles on battery power alone. This will allow some commuters to get away with never using petrol again.
However, with cash dwindling and US auto sales falling, GM, along with fellow crisis-hit companies Ford and Chrysler, is seeking $25 billion in federal handouts. On Friday, Democratic leaders outlined conditions that the Big Three must meet before they consider passing on the money after two meetings on Capitol Hill were widely regarded as ‘disastrous’ as the companies attempted to make their case to lawmakers and the public.
Worries are now mounting that the meltdown in Detroit could delay the rollout of green cars. GM for its part is determined to protect its investment ahead of a scheduled 2010 launch for the Volt, even though it is scrambling to cut around $15 billion in costs elsewhere.
GM however, has already taken the controversial step to scrap an earlier electric car, known in California as the Saturn EV1 which was displayed at the Los Angeles Auto Show two years ago.
The reversal in approach, and the fact that GM was ahead of its US rivals in turning to electric cars once more, has built up goodwill. However, some critics suggest GM will struggle to stay on course without a bailout tied in to directly save initiatives like the Volt.
Speaking to the Reuters Press Association, Lyle Dennis, a New York neurologist, stated: “It just seems to me this could easily be the end of the Volt. There are certainly no guarantees. I’m not a fan of bailouts but I just don’t see another way.”
What do you make of the proposed bailout? Is it unjustifiable or necessary given the circumstances? Please leave a comment below with your thoughts.
