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Author Topic: Electric Vehicles  (Read 16208 times)

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AGelbert

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Re: Electric Vehicles
« Reply #375 on: March 21, 2018, 09:35:42 pm »
TruthDig

Why Electric SUVs Will Save America's Car Companies

MAR 19, 2018 JUAN COLE

SNIPPET:

So what Ford execs are telling Forbes is that they know we are in a gasoline price trough right now, and that they know it is highly unlikely to last. Another big run-up of prices is around the corner—more especially since demand from growing economies such as China and India could well grow significantly as people abandon bicycles for motorcycles and automobiles.

When the price of gasoline goes back up, demand for SUVs and Mustangs will plummet, and Ford will be in trouble.

But there is an escape hatch for Ford and other American automobile manufacturers.

The electric SUV? 

You nailed it.

Renewable electricity is the future, and it is highly deflationary because the fuel is free. Renewables now account for 18% of American electricity generation and for the bulk of *new* installations. In Iowa, wind alone will make 40% of the state’s electricity by 2020.

So as we go, over the next decade and a half, to a grid largely powered by renewables, we will escape the roller coaster ride of oil and gas prices and electricity will get cheaper and more reliable. In fact, some towns in Texas are opting for wind power because the utility can tell you the cost of wind for 25 years out (after installation and maintenance, basically zero). No one can tell you the cost of fossil fuels even 5 years out.

Utilities are waking up to the renewables revolution, which will happen long before anybody expects it, and, as Quartz reports, are now actively promoting the idea of electric vehicles, since EVs will be crucial to their own profit margins. They will have to slightly shift their business model, charging not for the cost of fuel to generate electricity but for the cost of construction, maintenance and distribution of wind and solar facilities. EVs will be what they have going for them with regard to growth. And electric SUVs will be even better for their bottom line.

So, an electric SUV like the 2020 Ford Mach 1 or an electric Mustang won’t be vulnerable to consumer fickleness and Ford can count on steady sales year after year, escaping a major challenge to its business model.

And when the future of multi-billion-dollar American corporations depends on something, they will make it happen. Automobile companies used to do sweetheart deals in back rooms with Big Oil. They were an obstacle to the growth of green energy.

But if Ford switches around and takes a stand that is earth- and climate-friendly, that is a bright ray of hope for the future of the planet.   



——-

Full article:

https://www.truthdig.com/articles/why-electric-suvs-will-save-the-american-car-companies-not-china-tariffs/
Rob not the poor, because he is poor: neither oppress the afflicted in the gate:
For the Lord will plead their cause, and spoil the soul of those that spoiled them. Pr. 22:22-23

 

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