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  • About Those Cars Obama Wants to Build...

    Following up on EPA administrator Lisa Jackson’s statement that “what this country needs is a one single national road map that tells automakers who are trying to become solvent again what kind of car it is they need to be designing and building for the American people,” the Washington Post‘s Charles Lane reports on the practicality of one of the Obama administration’s preferred models, the electric car:

    Though Obama promised to have 1 million plug-in hybrids on the road by 2015, the dream of a mass-market electric car remains implausible and probably will be for years.

    A 2009 study by Boston Consulting Group found that the five-year total cost of owning an electric car would remain “relatively unattractive to consumers in 2020, unless its cost is subsidized.”

    And that’s in Germany, where high fuel taxes give drivers much stronger incentives to use alternative-fuel vehicles than in the United States. So if the electric car isn’t practical in Europe’s biggest car market, it’s even less so in the States.

    In fact, Boston Consulting Group found that the total cost of ownership of existing hybrids and advanced internal combustion engine cars is more attractive than that of electric cars as long as oil prices are below $280 a barrel. Oil is trading at around $49 a barrel today; in the United States, gas costs about $2 a gallon.

    Posted in Economics [slideshow_deploy]

    5 Responses to About Those Cars Obama Wants to Build...

    1. Spiritof76, New Hamp says:

      Forget about GM and Chrysler. They are or will shortly be owned by the government and UAW. We will get a car called, coffee break which nobody will buy.

      Electric car when it becomes viable will not happen in the US. Innovations will take place in places like Japan, Germany or China.

    2. Barb -mn says:

      The smart car looks like it would lose control in a gust of wind! Government's conscious death to the people.

    3. Pingback: About Those Cars Obama Wants to Build…

    4. C. Hatcher, Tx. says:

      If I lived, worked and stayed always in a large city and the total of my commutes consisted of going to the neighborhood grocery store, then one of these econo boxes would be fine. Not safe, but fine…It seems Mr. Obama thinks that the entire country is like the Northeast. You think for one minute, I'm drivng across the state of Texas in one of those little death traps, you are sadly mistaken. I certainly am not going to waste my money on one….Perhaps Mr. Obama is going to buy me one outright….It would make a nice planter……….

    5. chaeli ,lasvegas nv says:

      justthinkwhat the insurance is going to be on those little death traps,remember europeans and asians live in or close to the cities. we have the burbs ( created by the middle class ,mostly union workers over the decades by the way in the larger citiesvand farmers in the mid west)you can take your tata or what ever other small car obama and the dems want us to die in .ill drive my safer bigger car or truck in the wind and snow and rain .oh didnt toyota jump into the big truck market not too long ago? WHY because americans wanted them

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