[ELECTRIC] CAR SHOW 2010

Carmakers bet on electric; see early hurdles
Helen Massey-Beresford, January 13, 2010 (Reuters)

"Carmakers emerging from a savage crisis hope to lure drivers to electric cars in the coming years, but cost, range and safety considerations mean many are still cautious, holding back from predicting an early sales boom.

"As automakers showcased gleaming, futuristic electric cars at the Detroit Auto Show this week -- some of which will be on the road in 2010 -- executives' views varied on how quickly and comprehensively the technology will be adopted. Many sounded a note of caution…As the much-talked-about electric car revolution edges toward becoming a reality, safety is a key concern."

This market research foresees a rising buy-in globally. (click to enlarge)

"…French tire maker Michelin…showcased its Active Wheel technology, which integrates a miniature traction engine and an electric suspension system in the wheel…on the futuristic Volage concept car made by Monaco-based electric sports car maker Venturi…Active Wheel can improve the performance of electric cars, cutting out weight from the body of the vehicle and…[helping to] cut friction and waste, and make the car lighter and more energy-efficient…

"The price of gasoline also will be a factor as low prices lessen the push for alternatives like electric…[and the big question is:] how will consumers react? …[G]overnments are the ones pushing hybrid and electric technologies…[but] the consumer has not chosen [plug-in] vehicles yet…[C]ost could also be a major factor in holding back wide-scale adoption of the fledgling technology…Automakers are relying heavily on government cash to make early electric vehicles accessible in price to drivers…"

This academic study sees a big U.S. market or a bigger U.S. market, depending on energy prices. (click to enlarge)

"Japan's Toyota Motor Corp, which as the maker of the best-selling Prius is betting firmly on hybrids, sees range also limiting electric cars to urban areas in the short term…Rival Nissan Motor Co with French alliance partner Renault is meanwhile investing 4 billion euros in its bid to win the electric car crown…[and] expects 10 percent of new cars sold by 2020 to be electric...[O]thers have less bullish market forecasts, [though] toughening emissions rules mean the industry thinks electric cars will be adopted, even if it takes time.

"German carmakers, traditionally known for their large luxury cars, are vying for leadership of the electric car segment, although numbers are tiny for the moment, and may remain so for some time…BMW…sees electric vehicles accounting for 5-15 percent of new car sales by 2020…[The Volkswagen forecast] is much less optimistic…[at] 1.5-2.0 percent of worldwide car sales [in 2020]…U.S. carmakers, battling to shake off their reputation as makers of enormous gas-guzzlers, showed off greener, cleaner models…[and] Ford meanwhile, unveiled a big investment in electric technology…"