Skepticism about electric cars

After all the hype come all the concerns, starting with having to buy a $2,200 battery charger that will take eight hours to charge. Who will want to do that, at least in the beginning? Without government incentives, gas prices must rise to $8 to $9 a gallon before electric cars will be cost-effective, according to one study.From the WSJ:

Johnson Controls Inc.'s Power Solutions division, which makes batteries for cars, plans to expand its battery output with two new plants. But Alex Molinaroli, president of the division, said the company isn't expecting all-electric cars to take off. Johnson Controls's research found that the pool of U.S. customers for whom an electric car makes financial sense--those who travel many miles a year, but on short trips--is very small, about 3% of drivers. Electric vehicles, Mr. Molinaroli said, "will be an alternative. We just don't think it will happen as quickly as all the press releases out there would make you think." Instead, JCI is betting its batteries will increasingly find homes in hybrid models, which use a gasoline engine as well as batteries to provide a much longer driving range.

All of which is of considerable importance in California because the electric car industry has been trying to take root in the state. All new industries draw their share of skeptics, of course, but the bit about charging would seem to be an especially tough hurdle to clear.


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Mark Lacter
Mark Lacter created the LA Biz Observed blog in 2006. He posted until the day before his death on Nov. 13, 2013.
 
Mark Lacter, business writer and editor was 59
The multi-talented Mark Lacter
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