Electric Cars Steal The Spotlight At Auto Show

The Chevrolet Volt was named the North American Car of the Year.
Enlarge Robyn Beck/AFP/Getty Images

The Chevrolet Volt was named the North American Car of the Year.

The Chevrolet Volt was named the North American Car of the Year.
Robyn Beck/AFP/Getty Images

The Chevrolet Volt was named the North American Car of the Year.

text size A A A
January 14, 2011

When the North American International Auto Show opens in Detroit on Friday, there's going to be electricity in the air.

That's because electrification is one of this year's hottest trends. The floor is also packed with an assortment of electric things including a bicycle, a moped and even a battery-powered racing car.

But the star of the show is the Chevy Volt, the electric car with a backup gas engine. It won the top prize — the 2011 North American Car of the Year.

But it's certainly not the only electric car or hybrid in the game or on display at the show. Ford unveiled an electric version of the Focus compact. There's also an assortment of vehicles on display from Tesla Motors. Then, there are the Nissan Leaf, the Smart Car Electric Drive, Mini Cooper's Mini E and the Mercedes SLS E.

Low Inventory

Jessica Caldwell, director of pricing and industry analysis at Edmunds.com, says it's not possible to buy an electric car just yet.

"You couldn't get one," she says. "If you get one, it's probably going to be secondhand because there's such high demand for those vehicles."

December is one of the most important months for auto sales. During the month, GM sold just 329 Chevy Volts and Nissan sold about 10 Leafs.

Both cars just went into production, and both companies say they're planning to increase production levels.

GM has high hopes that the Volt will be adopted by a mainstream audience.

"Today a lot of our customers are early tech adopters — typically the first on the block to have an iPhone or an iPad," says Tony DiSalle, the head of marketing for the Chevy Volt. He thinks those numbers will improve over time.

"The most important thing is to get consumers — mass-market consumers — to understand the benefits of the Volt," DiSalle says.

GM expects to sell about 10,000 Volts this year. In 2012, the company will ramp up production to about 45,000 cars. But even that figure is small compared with the more than 2.2 million cars and trucks that GM's four brands sold in 2010. In the near term, the company says its electric fleet will account for a small sliver of sales.

Range Anxiety

One of the barriers to the adoption of the electric car is a phrase that keeps coming up at the auto show — range anxiety. Many of the cars on display can only travel under electric power for short ranges. Analysts say that until the big car companies can conquer consumer fears of running out of charge, electric vehicles will remain on the fringes.

"Look, the electrification of the American fleet is not going to happen overnight," says Bob Lutz, who retired as vice chairman of GM in May.

Before he left GM, he was responsible for pushing the Volt to production. He says electrification will be a gradual process, predicting that it will take until 2025 for electric vehicles to account for 10 percent to 15 percent of the overall market.

"Will it suddenly flip and within like two years you go into the showrooms and half the cars are electric?" Lutz says. "The answer is no."

More Efficient Combustion Engines

But Caldwell of Edmunds.com says the real star of the Detroit auto show remains the old combustible engine. She says almost every manufacturer is putting out cars that are getting more and more fuel efficient.

Caldwell says there are plenty of fuel-efficient options for consumers — even if they aren't as exciting as electric cars.

Related NPR Stories

 

More Business

Podcast + RSS Feeds

Podcast RSS

  • Business
     
  • Morning Edition
     
 
 
 

Comments

Discussions for this story are now closed. Please see the Community FAQ for more information.

 

NPR thanks our sponsors

Become an NPR Sponsor

Facebook chart

The company has grown from an idea hatched in a Harvard dorm to a worldwide social media phenomenon worth billions.

Kelley Hawkins and her grandmother AnnaBelle Bowers

Multigenerational households face difficult financial decisions surrounding elder care, paying for college and retirement.

From The Opinion Pages

TED's 'Explicitely Partisan' Talk, Briefly Barred From Its Site, Now Everywhere

An income inequality talk deemed too "explicitly partisan" for TED is now available for viewing.

Why do news outlets keep pushing the benefits of austerity politics when they don't work?

New Republic: The Misuse Of The German Example

Why do news outlets keep pushing the benefits of austerity politics when they don't work?

Irwin M. Stelzer argues that corporations, led by Citigroup, are beginning to police executive pay.

Weekly Standard: Shareholders Of The World, Unite

Irwin M. Stelzer argues that corporations, led by Citigroup, are beginning to police executive pay.

podcast

Planet Money Podcast

Planet Money Podcast

Meet high rollers, brainy economists and regular folks -- all trying to make sense of our rapidly changing global economy.

Subscribe

podcast

NPR Business Story of the Day Podcast

NPR Business Story of the Day Podcast

The top business story of the day from Morning Edition, All Things Considered and other award-winning NPR programs.

Subscribe