Saturday, February 21, 2009

Electric Cars Get a Makeover : Discovery News

Electric Cars Get a Makeover : Discovery News: "'There is virtually no market for them given the current economic situation,' said Koji Endo, auto analyst at Credit Suisse.

'People don't even want to buy a conventional car. Why would they buy a more expensive one? Furthermore, with gasoline prices falling sharply, an incentive for cutting fuel costs has disappeared,' Endo said.

Longer term, green cars may be necessary lineups for carmakers because of regulations aimed at curbing greenhouse gas emissions, Endo said.

'Green cars would be more sellable if the world economy recovers, which would lead to a surge in gasoline prices and generous government subsidies to purchase of green cars.'

Japanese automakers have enjoyed brisk demand for their smaller, fuel efficient cars in recent years.

The ailing Big Three US automakers -- General Motors, Ford and Chrysler -- meanwhile have faced criticism in Washington for being too slow to shift their focus from gas-guzzling SUVs.

But even Japanese automakers still have more work to do before fuel-cell or electric vehicles are completely environmentally friendly.

While fuel cell or electric vehicles emit no carbon dioxide themselves, CO2 is produced when hydrogen or electricity is produced from fossil fuels."

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