Government Skewers Its Own Investments In Electric Cars
It’s been a bad two days for electric cars. First, the Congressional Budget Office skewered the government’s rebate program for electric car buyers, saying the program doesn’t actually do anything to boost electric-car sales. Then Toyota announced it is scrapping plans for a small all-electric car, according to Reuters, because nobody wants them.
First, the Congressional Budget Office skewered the government’s rebate program for electric car buyers, saying the program doesn’t actually do anything to boost electric-car sales. Then Toyota announced it is scrapping plans for a small all-electric car, according to Reuters, because nobody wants them.
And on Tuesday, electric car maker Tesla said it is cutting its 2012 revenue projections because production of its heralded Model S car have been too slow. The same day, Consumer Reports announced they find the $100,000 extended-range electric Fisker Karma to be “plagued with flaws.”
Taken all together, the news is making conservatives ecstatic. They’ve mocked, ridiculed and been downright angry about the money the Obama administration is pouring into hybrid and electric cars. They argue the government is meddling in a market of stuff nobody wants to buy.
“What Obama did was use the power of government money to insert himself into market decisions that he was ultimately dead wrong on,” said Ben Howe, a blogger and video producer from South Carolina who made a parody commercial of the Chevy Volt. Although light on facts, the parody demonstrates how some people see the Volt and other battery-powered cars: As a joke.
“The market has spoken loudly and clearly: We’re not interested in this,” Howe said.
But that might not be entirely correct. The Chevy Volt, which is bolstered by a $7,500 government rebate, had its best sales month in August. (That’s also when GM was piling on incentives, which probably helped a lot.) Demand is especially strong in California, which is the Volt’s biggest market.
And Tesla said the reason Model S sales are slow is not because of lack of demand. The company has had issues with its suppliers, and has been unable to get all of its parts either done correctly or done on time. The issues have put them four or five weeks behind schedule.
On the flip side, sales of the all-electric Nissan Leaf are sluggish this year, down 31.5% since 2011.
The CBO said its analysis shows that all federal programs aimed at electric cars – including consumer rebates, research and development loans, and other government incentives – will have cost the government $7.5 billion by the end of 2019. Tax credits for consumers, which have the biggest impact on whether or not these cars can be affordable for most people, make up one quarter of that cost.
But many people buying electric cars or advanced hybrids now aren’t buying because of the rebates, the CBO said. Many of them could afford the cars even without the tax incentive.
Even supporters of battery-powered cars admit that the cost equation doesn’t make a ton of sense right now. But they believe that as more drivers adopt electric cars or advanced hybrids, the price will start coming down. Max Baumhefner, a sustainable energy fellow at the environmental group Natural Resources Defense Council, told the BBC that electric cars are just like other technologies, like pocket calculators and cellphones, which started out expensive and then came down in price.
But he also pointed out there are plusses to owning a car that doesn’t run on gas:
“Unlike petrol, the price of electricity doesn’t go through the roof every time there’s a hurricane in the Gulf of Mexico or violence in the Middle East,” he told the BBC. “It’s a cleaner, largely domestic fuel; the price of which is heavily regulated.” Driving on electricity costs about one quarter the price of gas, he said.
A better way to get people to adopt electric cars would be to increase the federal gas tax, the CBO said, which would drive up gas prices and force consumers to seek out more fuel efficient cars. But good luck finding an elected official who would support that — American voters have made it clear they won’t support anyone who merely suggests we should pay more for gas.
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The government has formalized its mandate that the average fuel economy of the new-car fleet by 2025 must be 54.5 miles per gallon.
That means that through a complicated system of government arithmetic, cars we buy by 2025 are going to have to be a whole lot more fuel efficient than they are today.
What’s that mean for you the consumer? Very few, if any, V8 engines, except on trucks and SUVs that really have to work to pull loads. It also means more hybrid vehicles, and more families opting for an electric car, or extended range electric vehicle like the Chevy Volt and new Ford C-Max, as a second or perhaps primary vehicle.
While the push for much greater fuel economy can be controversial (i.e. Nobody is taking away my Chevy Suburban!) there are more and more vehicles coming from automakers for us to choose from. And it starts this Fall.
We thought we would give you a preview of some of the more interesting new hybrid and EV choices from some of the biggest and best loved automakers arriving over the next few months.
Tesla Model S
Tesla is the company that believes there is a strong business model for electric luxury cars. According to theEPA, the Tesla Model S gets a miles per gallon equivalent (MPGe) of 89 (combined), 88 (city) and 90 (highway). Green Car Reports says the range has been declared to be 265 miles, which beats the previous distance champion – the Tesla Roadster – by 20 miles.
To compare, other pure electric cars on the market include the Honda Fit at 118 combined MPGe, the Mitsubishi i with 112 MPGe, the Ford Focus Electric with 105 MPGe and the Nissan Leaf with”just” 99 MPGe.
Even at the bottom of this particular list, these are impressive numbers for the Model S. Still, that range figure only applies to the top-of-the-line version with the 85-kWh battery that starts at $69,900 (or an eye-popping $97,900 in so-called Signature Performance guise).
If you are into parting with those kinds of dollars for an EV, all those numbers will make sense to you.
Chevrolet Spark
This Fall, Chevy is selling a new mini-car, called Spark, that is meant to compete against the growing number of mini cars like the Fiat 500, Scion iQ, Mazda2 and so on.
The five-door Spark will test America’s appetites for small car life with a starting price of just $12,995 (including delivery) when it arrives in Chevrolet showrooms. Available in a trio of trims, the lineup will start with the well-equipped LS model that includes a whopping 10 airbags, air conditioning, power windows, OnStar and 15-inch alloys.
And we will also have an option of a Spark Electric. Hey, that sounds petty cool and is as name-appropriate as the Volt. The Spark EV hits dealerships sometime in the first half of 2013. We’ll know pricing then, but we hear the range on a single charge should be about 80-90 miles.
BMW i3
BMW is in the same boat as every other automaker and must produce more hybrids, EVs and the like to meet stiffer fuel economy standards. Enter the i3, an electric car that the company expects to be selling through dealerships by 2013, but we are including in our gallery now because, well, it is cool, and we have a lot of anticipation building up.
BMW has started testing its electric-drive i3 in Northern Europe. As the German automaker looks to gather more testing information on the model it may launch as early as next year, according to Green Car Reports.
The battery-electric i3 is expected to have a single-charge range of about 80 miles and a 0-60 mile-per-hour acceleration time of about 8 seconds.
Acura ILX
The ILX is built off the same platform as Honda’s venerable Civic, but the styling is distinct enough that you won’t be totally embarrassed for paying Acura prices for a Civic.
The Hybrid ILX has a 1.5-liter engine and continuously variable gearbox that is shared with the Civic. With 91 horsepower from the engine and a maximum of 23 more horses from the electric motor, the ILX Hybrid is predictably passive in its pace. Slapping the shifter into Sport mode helps a little, but there’s just no way the combined torque of 127 lb-ft from 1,000 to 3,000 RPM will get the vehicle moving in a hurry. It’s not horrible when meandering away in urban settings, but that’s the most praise we can offer its ability to get the show on the road.
The ILX Hybrid is rated at 39 mpg in the city and 38 on the highway. That’s not exactly bad, but it’s uncompetitive with the 43/40 rating of the Lexus CT200h. If you plan to do most of your driving on highway, the Audi A3, when equipped with its optional turbo diesel engine, manages 42 mpg on the highway. Both of those models are in the same ballpark as the ILX Hybrid’s $28,900 (*add $895 to all prices quoted for destination) starting price, which jumps to $34,400 when optioned with the Technology package.
Honda Fit EV
It might only be available to lease in limited numbers in only a few areas, but the Honda Fit EV certainly has one thing that’s tremendously good about it: an official EPA rating of 118 MPGe and a range of 82 miles. Specifically, the all-electric Fit gets 132/105/118 city/highway/combined MPGe. Honda says the little EV is the most efficient vehicle the EPA has ever tested, but we’re not sure about that.
Leases began”in select California and Oregon markets this summer, and now the car is headed to East coast rollout in early 2013.” The Fit EV leases for $399 a month and has an MSRP of $36,625. The supply is lintier, so if you want one, get thee to a dealer that has one.
Ford C-MAX
Ford is introducing a slew of new advance-powertrain models over the next year. These include full hybrid, plug-in hybrid and all-electric vehicles. One of the first to arrive is the all-new C-Max Hybrid, which has the Prius, specifically the Prius V, aligned in its crosshairs.
Thanks to its high roofline (63.9 inches), the Ford boasts 52.6 cubic feet of space behind the first row and 24.5 cubic feet behind the second row. It also offers more headroom in both the front and rear seats than the Prius V (41.0 and 39.4 inches, versus 39.6 and 38.6 inches), according to Ford. Add it all up, and the C-Max Hybrid offers 99.7 cubic feet of passenger space (the Prius V offers slightly less at 97.0 cubic feet). The C-Max’s standard five-place cabin also features a 60/40 split-fold-flat second row, designed with one-handed operation in mind, for additional utility.
Under the front hood of the 2013 Ford C-Max Hybrid is a naturally aspirated 2.0-liter Atkinson cycle gasoline-fed inline four-cylinder rated at 141 horsepower that has been mated to a 35-kW permanent magnet AC synchronous electric motor for a combined system power of 188 horsepower.
The C-Max Hybrid earns 47 miles per gallon in the city and 47 mpg highway (47 combined), while the Prius V earns 44 mpg city and 40 mpg highway (42 combined). Thanks to its 13.5-gallon fuel tank, the C-Max will deliver a 570-mile cruising range
Ford C-MAX Energi
The C-Max Energi is an extended range electric car similar to the Chevy Volt and Toyota Prius Hybrid. How does it work? In the case of the Energi, it means you can drive on a battery charge for about 20 miles. Then, the gas-fed motor kicks on and continues to power the car through the battery. You won;t run out of power unless you run out of gas.
The engine in the Energi, like the Volt, does not re-charge the battery. You have to plug in somewhere for that. The idea is to charge the car up overnight at your house while electricity is cheapest. This kind of car is ideal for someone who puts less than 35 miles a day on their car, or as a commuter if there is a charger at the workplace garage–which is becoming more commonplace.