Remember when electric cars were going to sell in the millions? Thousands of new jobs would be created, too, as consumers would line up around the block for these dream machines. Dream machines, indeed. The dream, like most government boondoggles, is turning into a nightmare of evaporating taxpayer money and low demand for plug-in cars.
The Washington Post (Hat Tip: Planet Gore) reports that after burning through $5 billion in taxpayer cash, the whole electric car scheme is spinning its wheels (love these metaphors?).
A123 Systems, a battery maker that received $380 million in government support, announced recently that declining orders had forced layoffs. Instead of up to 3,000 new Michigan jobs as Obama and the company had predicted, it now has 690 employees.
Battery maker EnerDel, recipient of a a $118 million federal grant, took a hit when its key customer, electric-car maker Think, declared bankruptcy this year. Johnson Controls, which received a $299 million stimulus grant, opted to build one factory instead of two because of lower-than-projected demand, a company official said, and that one is now operating at half capacity.
California electric-car maker Aptera announced it was shutting its doors because of problems raising capital. And General Motors — whose moderately priced Volt was supposed to drive Obama’s push for 1 million alternative vehicles by 2015 — revealed last week that it would fall roughly 38 percent shy of its goal of selling 10,000 Volts this year.
Why?
“Many in this industry have jumped the gun on how aggressive the growth of electric vehicles will be,” said Kevin C. See, an analyst at Lux Research.
In other words, people aren't buying these short-range transportation appliances. Problem is there's no "individual mandate" to buy electric cars (wait until Obama's second term and/or the new CAFE regulations kick in leaving only gas-sippers that are as joyful to drive and roomy as lawn mowers your only vehicle choice).
A lot of Americans can operate a calculator. Those that can't buy lottery tickets. Those who can, look at expensive electric cars and say, "pass." Americans don't want to drive expensive little wheeled boxes that give you range anxiety. And apparently, they aren't too interested in the Chevy Volt, either.
And what really annoys me is the waste. This is all to "stop" global warming, which has had so many holes knocked it in, the only reason to take it seriously is so you can control other people's lives. Which is the goal of the environmentalists, anyway.
So look for the "Automobile Choice and Protection Act of 2014" to have the "electric car individual mandate" (especially if the Supreme Court rules Obamacare constitutional).