Electric vehicle sales fall far short of US President's goal

chika ebuzor

January 20, 2016 7:57 AM

Back in 2008, with gas prices averaging nearly $4 a gallon, President Barack Obama set a goal of getting one million plug-in electric vehicles on the roads by 2015.

U.S. President Barack Obama holds his end of the year news conference at the White House in Washington December 18, 2015. REUTERS/Carlos Barria

Since then, his administration has backed billions of dollars in EV subsidies for consumers and the industry.

Yet today - with gas prices near $2 a gallon - only about 400,000 electric cars have been sold. Last year, sales fell 6 percent over the previous year, to about 115,000, despite the industry offering about 30 plug-in models, often at deep discounts.

Such challenges are part of the backdrop for Obama's Wednesday visit to Detroit, where he's expected to discuss the state of the auto industry.

Despite slow plug-in sales, the industry continues to roll out new models in response to government mandates and its own desire to create brands known for environmental innovation.

At the Detroit Auto Show last week, General Motors Co showed off its new electric Bolt EV; Ford Motor Co unveiled a new plug-in version of its Ford Fusion; and Fiat Chrysler Automobiles NV unveiled its first plug-in hybrid, a version of its new Pacifica minivan.

Ford CEO Mark Fields said last week that EVs "are a difficult sell at $2 a gallon."

Plug-in vehicles accounted for fewer than 1 percent of the 17.4 million cars and trucks sold last year, according to data from HybridCars.com and Baum & Associates, a Michigan-based market research firm.

That doesn't include sales of more mainstream gas-electric hybrids such as the Toyota Prius. But hybrid sales also fell last year - by 15 percent, to 384,000 - and now comprise just 2.2 percent of all vehicle sales.

In his State of the Union Address last week, Obama didn't specifically address electric vehicles but said: "We've got to accelerate the transition away from old, dirtier energy sources."

The main obstacles for electric vehicles are their high cost and short driving range. The Chevy Bolt promises a breakthrough on both fronts, with a 200-mile range and a price starting at about $30,000 - after government incentives.

chika ebuzor