Electric Car Makers Can Sell Their ZEV Credits So Other Car Makers Can Continue To Sell Gasoline Powered Vehicles in California
But First Snide’s Remarks; Verrry interesting, another way to force EV's on a non-interested public. You all know how skeptical The Auto Channel has been about the practical and economic value of EV’s unless or until a major Star Trek-like breakthrough changes the physics of batteries.
But this new wrinkle on a dubious, but good intentioned requirement, has morphed into a work-around for future ZEV development, and will insure that the few EV makers will make profit not from selling electric or other ZEV cars, but from their subsidization by non-ZEV car makers and California’s car buyers.
Deep pocketed car companies that want to continue to sell gas guzzlers and other old fashioned anti-American fuel powered vehicles in sunny California (along the other States committed to follow the California requirement) can do so without ever concerning themselves with a move to sustainable domestic fuel to power their products.
EV makers will be able to price their offerings low enough so as to actually sell them and make their profit from selling their earned and unneeded ZEV credits (like GM made $ billions from 1921-1974 not from selling cars profitably but from royalities generated from ownership of leaded gasoline), so the non ZEV car makers can continue selling in California and keep the old fashioned gasoline status quo …this has gotta make OPEC happy. What do you think? firstname.lastname@example.org.
Nissan Poised to Sell Green-Vehicle Credits
New May 29, 2012; Bloomberg News reported that a new front is opening in the very slowly emerging market for electric vehicles -- not for selling cars, but for selling earned credits that are required to meet clean-air rules. Starting this year, California had required the biggest automakers to sell increasing numbers of “zero-emission vehicles,” or ZEVs, such as pure-electric, plug-in hybrid and hydrogen-powered autos. But now auto makers will have an option of buying ZEV credits from rivals car makers that exceed their ZEV targets, allowing them to circumvent the California requirement yet still have a legal presence in the world’s largest car market.
This means that an automaker can sell gas guzzlers and old technology to Californians wanting them bybuying ZEV credits so it won't ever have to take a major investment risk by making and trying to sell so far unprofitable and unwanted EV’s and other ZEV models.
Nissan the maker of the EV Leaf told Bloomberg News that it may sell credits earned from its sales of the car. "We are in a fortunate position of having positive credit, so that's obviously something we are able to look at," Andy Palmer, an executive vice president, said. "We are exploring some plans, but we haven't announced anything yet."
Nissan won't be the first. Tesla Motors has already sold some credits to Honda, which is introducing its own Fit electric car this year. Electric car maker Coda told USA today it may get into the trading game as well (and why not we ask, credits can add a pretty thick layer of profit on top of a startup manufacturer . Ed.).
Click here to read more on California’s rule allowing credit sharing for EVs.