Revenge of the Electric Car

A coalition of car makers, battery suppliers and electricity providers has come together to ask for federal help for EVs.

More details at:

Group Seeks US Tax Credits To Spur Electric Car Use

by Judith Burns for Dow Jones.

“A coalition of auto makers, battery manufacturers, utility operators and shipping companies wants the U.S. to offer tax credits for buying all-electric plug-in vehicles as part of a $128 billion program to get seven million such cars on the road by 2018.

The “cash for volts” approach was touted Monday by the Electrification Coalition, a 13-member group that sees electric plug-ins as the answer to a host of problems, from dependence on foreign oil to tailpipe emissions that some believe is contributing to global climate change.

The group issued a lengthy report and a 30-second television commercial touting its plan, and its members outlined it at a presentation in Washington, D.C. All stressed that plug-in technology already exists and just needs a push on the financial front from Congress.”

Here’s the text of the entire article, in case the link goes bad:

http://money.cnn.com/news/newsfeeds/articles/djf500/200911161801DOWJONESDJONLINE000398_FORTUNE5.htm

UPDATE:Group Seeks US Tax Credits To Spur Electric Car Use

November 16, 2009: 06:01 PM ET

(Updated to attribute projection on “smart-grid” earnings to FERC Chairman.)

By Judith Burns

Of DOW JONES NEWSWIRES

WASHINGTON -(Dow Jones)- Move over, cash for clunkers. A coalition of auto makers, battery manufacturers, utility operators and shipping companies wants the U.S. to offer tax credits for buying all-electric plug-in vehicles as part of a $128 billion program to get seven million such cars on the road by 2018.

The “cash for volts” approach was touted Monday by the Electrification Coalition, a 13-member group that sees electric plug-ins as the answer to a host of problems, from dependence on foreign oil to tailpipe emissions that some believe is contributing to global climate change.

The group issued a lengthy report and a 30-second television commercial touting its plan, and its members outlined it at a presentation in Washington, D.C. All stressed that plug-in technology already exists and just needs a push on the financial front from Congress.

“There’s no pie-in-the-sky here,” said FedEx Corp. (FDX) Chairman and Chief Executive Fred Smith, one of the coalition members.

However, “we’re talking about heavy investment” in cars, batteries and supporting technology, said Nissan Motor Co. (7201.TO) Chief Executive Carlos Ghosn, another coalition member, whose company’s all-electric vehicles will be sold in the U.S. starting next year.

Nissan is bullish on plug-ins, which Ghosn predicts will account for 10% of cars sold by 2020. By contrast, hybrid vehicles that mix traditional internal- combustion engines with electric power accounted for less than 3% of car sales in 2008, more than a decade after their introduction.

Instead of a national push for plug-ins, the coalition recommends starting with six to eight U.S. cities, chosen after a competition to act as a test site for electric vehicles, much as they might to host the Olympic Games. By 2013, it wants each city to have 50,000 to 100,000 electric car owners, or 700,000 nationwide, setting the stage for an expanded test that will add 20 to 25 cities, putting seven million plug-ins on the road by 2018.

The group wants residents in test cities who buy electric vehicles to qualify for generous tax credits that are significantly higher than the $7,500 maximum now available, and would like tax credits to fund 50% of the costs to upgrade utilities and 50% to 75% of the cost to build public charging facilities.

The group notes that Japan and the European Union already offer large financial incentives to spur electric vehicle purchases.

Some U.S. lawmakers are supportive of the idea.

“We can set the stage for it, with a wide range of tax credits,” said Sen. Byron Dorgan (D-N.D.) who took part in the event. But, Dorgan said whether electric vehicles take off or flop will depend on consumers.

Despite a high upfront cost, operating an electric vehicle is cheap, costing 2.5 cents per mile traveled, compared with 12 cents per mile for a gas-powered car, advocates say. Since batteries that power electric vehicles might last longer than the car itself, they say financing will have to be adjusted to reflect that.

Electric cars already have a long-enough range for most Americans, who typically drive no more than 40 miles a day, coalition members noted. Vehicle owners would be able to fully charge them at night in their own garages, using an ordinary electric plug, and Federal Energy Regulatory Commission Chairman Jon Wellinghoff suggested that they might earn up to $10 a day by having the vehicle hooked to a “smart” electric-power grid to help utility operators regulate supply and demand. Then, assuming such vehicles can be mass produced, “the math works,” said Smith.

Fast chargers, operating at 480 volts, available at public facilities, would allow drivers to charge vehicles on the go, removing the anxiety about the limited range of today’s battery-powered cars, coalition members added. The cost to put such facilities every 25 miles along interstate highways in California alone might cost $75 million, another hurdle the group hopes can be cleared with federal financial help.

-By Judith Burns, Dow Jones Newswires, 202-862-6692; Judith.Burns@dowjones.com