The Auto Channel
The Largest Independent Automotive Research Resource
The Largest Independent Automotive Research Resource
Official Website of the New Car Buyer

Buyers Want Big, Car Makers Want Big, Government Wants Small - So The Disconnect Grows


SEE ALSO: SUV's and Big Cars with Choice of Fuel, Not Small Cars Without Choice, Is What's Good for America (Originally Published 2009)
SEE ALSO: Americans Want Big Cars and Pickups...Detroit Wants to Build Big...So Let's Have Big...BUT!(Originally Published 2009)
SEE ALSO: Electric Vehicles - Solution or Diversion?

Washington DC January 7, 2016; The AIADA newsletter reported on the disconnect on electric vehicles.

From the battery-powered Chevrolet Bolt crossover to the hydrogen fuel cell-powered Honda Clarity to a hybrid Chrysler minivan, automakers are expected to show a parade of electric vehicles at the 2016 Detroit auto show.

According to The Detroit News, a rare sight a decade ago, they will join dozens of battery-powered entries in dealer showrooms as automakers try to dazzle consumers and meet government gas efficiency mandates. But with national gas prices hovering at $2 a gallon and SUV sales booming, battery-powered vehicles' share of the market last year dropped to just 2.4 percent, a 20 percent decline from 2014.

The trend has sent ripples of concern through an industry that must meet escalating emissions goals to combat global warming by 2020 — that is, within the current product cycle. By 2020, California, the country's largest auto market, will require roughly 10 percent of sales be zero-emission vehicles (either EVs or fuel cells). Experts say the result is a two-tier market.

To satisfy consumer hunger for SUVs, automakers are churning out crossovers and trucks at a record pace. Trucks and SUVs account for 55.7 percent of market share — an 11 percent increase in the last five years. For more on the Detroit News take on the growing disconnect over electric cars, click here.