As the major automakers race to put electric vehicles into showrooms, they are spending money like it’s going out of fashion. According to reports, General Motors has splashed out around $1billion developing the Chevrolet Volt, while Chrysler hopes to invest around $448million in its electric vehicle programme.
However, just how wise is this move with no guarantee yet that the manufacturers will earn a return on their investment?
According to Ron Cogan, founder and editor of the Green Car Journal, the Obama administration is betting heavily on technology and that electric cars are not an exclusive answer to future transportation challenges and consumers will not be willing to buy them at all costs.
Cogan is far from a naysayer about the prospects of electric vehicles – he has been covering them since 1992 in his award winning magazine. He also spent a year living with the pioneering General Motors EV1 electric car and has driven the vast majority of alternative fuel vehicles. Nevertheless, he believes they may be cost prohibitive for some time to come.
He says that while there are advantages to the electric car through its high efficiency, zero localised emissions and petrol free operation, it’s important to recognise the significance of affordable cost.
He believes that the cars are not to blame as several car makers proved in the 1990s that it is possible to build fully fledged electric vehicles with the amenities and comfort drivers expect – examples include the Toyota RAV-EV and the Honda EV Plus. However, manufacturers have not yet been able to develop a battery pack that costs less than $20,000-$30,000 and that is why electric vehicle price tags continue to approach $50,000.
Cogan believes that while early adopters and hardcore advocates will buy the electric car at that price, the majority of us will not pay $15,000-$25,000 for a car that runs on electricity. As such he thinks that electric cars should be considered mid-to-long term solutions until car makers can bring costs down and add a level of competitiveness with the internal combustion engine.
