By Cornelius Nunev
Many groups and people have recommended the use of electric vehicles as a way to help the environment and lower our oil dependence. But even with sky-rocketing fuel costs, the buying public just is not going for EVs in a big way. In the aftermath of a damning federal report, there has been a spate of negative press lately for the EV.
Not as good to go electric, according to CBO
Much of the incentive to buy electric vehicles has come from the government. Since 2009, the federal government has been offering tax credits of as much as $7,500 to consumers who purchase electric vehicles. The Advanced Vehicle Technologies Manufacturing program was initiated by the Obama Administration, but was actually developed by the Bush Administration, beginning in 2007.
The Congressional Spending budget Office released a report showing that the EV tax incentives are not effective on Thurs, September 20. That means the goal of the program to increase the sales of EVs and lower the amount of fuel getting used is not being met. The bonuses have "little or no impact on the total gas use and greenhouse fuel emissions of the nation's vehicle fleet over the next several years," according to the report.
Other negative charges
There is not a lot of enthusiasm for electric vehicles, on top of the CBO comments.
Tuesday, Consumer reports trashed the expensive extended-range electric Fisker Karma, finding it "plagued with flaws."
Tesla Motors just had a secondary stock offering, but now it has lowered its near-term revenue forecasts.
Meanwhile, according to Reuters, Toyota magic is waning as it scuttles intends to add a small EV to its line-up. The car maker cited lack of interest from buyers for the move.
All about the politics
Conservative politicians have been fast to point fingers at the Obama administration over the cost of the Advanced Vehicle Technologies Manufacturing program, forgetting that it was commenced by the prior administration. However, the CBO report -- initiated by Lisa Murkowski, a conservative senator from Alaska -- will no doubt be used as fuel for their arguments.
Brian Wynne, the Electric Drive Transportation Association president, does not trust the CBO report and states that it is inconclusive:
"The report provides the caveat that 'as yet, no reliable estimates exist of the share of electric vehicle sales that can be attributed to the tax credits.'"
Justifying patience
Being patient may be the key. For example, Tesla is lowering its revenue projects not because the automobiles are not selling but because it is not producing enough cars to meet demand at the moment.
The Chevy Volt saw its best sales month ever in August. Many think that sales spike was largely due to generous bonuses, much of which came from the government.
General Motors is losing thousands on every Volt it sells, and yet it recently announced even more rebates, some as high as $1,000, for Volt buyers. The car maker is banking on the future and patiently suffering losses, believing that increased demand for EVs is unavoidable. And when car buyers do rally, General Motors hopes to be at the forefront of the game.
General Motors could be right about the change being unavoidable. In spite of the fact that the industry is resisting the change, it will likely take place.
During election time, one thing is for sure. This will bring up a lot of controversy. The electric car industry moving forward may hinge on the election.
Not as good to go electric, according to CBO
Much of the incentive to buy electric vehicles has come from the government. Since 2009, the federal government has been offering tax credits of as much as $7,500 to consumers who purchase electric vehicles. The Advanced Vehicle Technologies Manufacturing program was initiated by the Obama Administration, but was actually developed by the Bush Administration, beginning in 2007.
The Congressional Spending budget Office released a report showing that the EV tax incentives are not effective on Thurs, September 20. That means the goal of the program to increase the sales of EVs and lower the amount of fuel getting used is not being met. The bonuses have "little or no impact on the total gas use and greenhouse fuel emissions of the nation's vehicle fleet over the next several years," according to the report.
Other negative charges
There is not a lot of enthusiasm for electric vehicles, on top of the CBO comments.
Tuesday, Consumer reports trashed the expensive extended-range electric Fisker Karma, finding it "plagued with flaws."
Tesla Motors just had a secondary stock offering, but now it has lowered its near-term revenue forecasts.
Meanwhile, according to Reuters, Toyota magic is waning as it scuttles intends to add a small EV to its line-up. The car maker cited lack of interest from buyers for the move.
All about the politics
Conservative politicians have been fast to point fingers at the Obama administration over the cost of the Advanced Vehicle Technologies Manufacturing program, forgetting that it was commenced by the prior administration. However, the CBO report -- initiated by Lisa Murkowski, a conservative senator from Alaska -- will no doubt be used as fuel for their arguments.
Brian Wynne, the Electric Drive Transportation Association president, does not trust the CBO report and states that it is inconclusive:
"The report provides the caveat that 'as yet, no reliable estimates exist of the share of electric vehicle sales that can be attributed to the tax credits.'"
Justifying patience
Being patient may be the key. For example, Tesla is lowering its revenue projects not because the automobiles are not selling but because it is not producing enough cars to meet demand at the moment.
The Chevy Volt saw its best sales month ever in August. Many think that sales spike was largely due to generous bonuses, much of which came from the government.
General Motors is losing thousands on every Volt it sells, and yet it recently announced even more rebates, some as high as $1,000, for Volt buyers. The car maker is banking on the future and patiently suffering losses, believing that increased demand for EVs is unavoidable. And when car buyers do rally, General Motors hopes to be at the forefront of the game.
General Motors could be right about the change being unavoidable. In spite of the fact that the industry is resisting the change, it will likely take place.
During election time, one thing is for sure. This will bring up a lot of controversy. The electric car industry moving forward may hinge on the election.
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