28 July 2010

Pull the Plug on the Volt

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The news today tells you only part of the story. According to the talking heads, Nissan and GM are in a 'price war' with their new electric cars. Why, if it's such a good idea and so many people clamour for it, should they get into a price war? Price wars ensue when companies have to compete for business. They are good for consumers, no matter what Obama says about how bad it is to have so many business entities. If we demand it, more companies will produce it, which will create competition for our patronage. There's more to it however than that.

Reality is, there is not much demand for these cars. I don't know about you, but I'm not in a hurry to go out and spend $41,000 to buy a sedan. Maybe if I wanted to buy a Suburban, but not for a status symbol like this. It amazes me how much you have to pay now just to show you care about "saving the planet".

Chevy Volts have a lot of problems. First off, they run on batteries which are a very inefficient storage medium and very heavy and expensive to replace both fiduciarily and environmentally. These batteries are so bad that the car goes only 40 miles on a charge, which means I would have to charge it while at work just to drive home. Backup gas tank gets 375 miles, and the fact that they have one is basically a tantamount admission that most peopel rely on gas to get where they are going. Do you want to charge the car for three or four hours every time you drive somewhere? You have a 20 mile maximum radius on batteries. This car is the most expensive Chevy on the road. Our administration announced that it comes with a $7500tax credit, which is tantamount to an admission that nobody wants one.

Obama touts this as a major effort while he ramps up his effort to ban coal. How will we get the electricity with which to charge the car if they ban coal? Las Vegas generates a large portion of its energy via coal burning power plants about 10 miles north of town at Apex and 50 miles further at Hidden Valley. Wait until you see the electric bill skyrocket from plugging in your electric car! How will we get that extra energy? From more coal burned out at those power plants. Moreover, if you have to run your Air Conditioner in our 108-115F temperatures right now, that is sure to impact the maximum range. There is still a long way to go and some real tough questions to ask about how to do this right before electric can take hold.

Furthermore, who's to say that something better than an electric car will not come along in the meantime? That’s why I haven’t bought into BluRay. I am not convinced that something else won't come along before they stop making DVDs that is better, cheaper, and more to my taste, and so I'm in no hurry. Knee jerk reactions almost always lead to mistakes. Pull the plug on the volt. Nobody wants one.

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