Bloomington, IN, United States (AHN) – An Indiana University report released Wednesday identified lack of demand as a possible damper to the U.S. goal of having one million electric cars on American roads by 2015. Aside from probable weak demand, the report said automakers and suppliers also do not have sufficient production targets.
Other weaknesses found by the 13-member panel which evaluated the 1 million target of plug-in electric vehicles by the end of four years include uncertainty over reliability and resale value of electric cars and general lack of consumer understanding of PEVs.
IU School of Public and Environmental Affairs Dean John Graham said these major barriers must be overcome to fulfill President Barack Obama’s goal of commercialization of electric vehicles. Panel Chairman Gurminder Bedi, a former Ford Motor executive, added that for the program to succeed there must be an unusual degree of cooperation between industry and government.
Nissan has the Leaf model and General Motors has the Volt as PEV prototypes. Both car manufacturing firms also have the capacity to build enough electric vehicles to meet the one million goal by 2015.
As of 2008, there were about 57,000 electric cars in the U.S. To sell more electric cars, Washington offered several incentives to car buyers, such as a $7,500 tax credit for first-time buyers.
Aside from those incentives, the panel recommended the creation of a national PEV demonstration program in 20 communities around the U.S. for American motorists to better understand and appreciate electric cars. The panel also pushed for more cost-effective incentives for buyers of PEVs. There is a new bill in the U.S. Congress proposing a more than 100 percent increase in the current $7,500 tax credit for PEV buyers. The bill would cost the federal government up to $19 billion over a decade.
View full post on Economy, Business And Finance Stories
February 7th, 2011 
davidguide 
Posted in 
Tags: 
