GM's Volt--An Electric Car No One Will Buy

GM’s Chevrolet division will start to sell the electric Volt model later this year but will produce only about 10,000 models between then and the end of 2011. Nissan will launch its Leaf electric vehicle about the same time.

It is wise that the companies limit production. Except for consumers who want to say that they have one of these wonders of science and ingenuity in their driveways, the vehicles are nearly useless.

The Volt will cost $41,000, which some experts say will price it out of the market.

Price is not the major drawback to electric cars. Power sources are. There is no evidence that the electric grid will be able to support large numbers of car charges all working at the same time overnight, particularly if the grid is already taxed by high demand for power.

The more significant problem with these vehicles is that there is no mechanism to charge them far from home. There is no network of service stations across the country that can recharge the cars when they run out of energy. The charging time also makes “refueling” on the road impractical.

The electric car is also up against competition with products which are nearly as energy efficient but have ready sources of energy. These include standard hybrids, clean diesel vehicles, and new ultra-high mileage engines like the Econoboost products built by Ford (NYSE: F).

Using electric power to power vehicles is not a new idea. Trains and subways have used electricity for years, but these methods of transportation run with electrified tracks or overhead wires so that they can go great distances without a charge. There is no similar system for the Volt.

Douglas A. McIntyre