December 12, 2014

‘Green’ Vehicle Market in the Tank

The Obama administration’s massive campaign to promote more energy efficient vehicles like Chevy’s Cruze and Volt, Toyota Prius and Nissan Leaf failed to garner much support. To say sales have underperformed is an understatement, and that’s despite high gasoline costs during Obama’s presidency. Today, per-barrel oil prices are at a five-year low, and some areas of the country are paying less than $2 for a gallon of gas. That doesn’t bode well for an already struggling alternative vehicle market. Writing in BloombergBusinessweek, Kyle Stock calculated, “A road trip in a Ford F-150 pickup from New York to Los Angeles costs about $292 at the moment, roughly $84 less than it did just two years ago. A stop for gas in the middle of the country will cost less than $2 per gallon. All this is a major problem for anyone trying to sell hybrid and electric vehicles.” Indeed, he noted, “A big part of the sales equation – savings at the fuel pump – has virtually vanished.” That’s a far cry from all those doomsday scenarios we were fed over the years. More…

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