Thursday, February 03, 2011

Ignoring what customers want - the Obama way

Guess what? People just don't seem to want to buy electric cars and there seems little hope that the market would survive without the federal government's support.
President Barack Obama's goal of putting 1 million electric cars on U.S. roads by 2015 could run into a huge roadblock -- the American consumer.

According to a report released Wednesday by researchers at Indiana University, automakers are unlikely to manufacture enough cars to reach the president's goal because of a potential lack of buyer demand.

Nissan and General Motors, makers of the Leaf and Volt, respectively, already have the capacity to produce enough cars to meet the goal. Serious questions remain, however, about the level of desire among potential buyers worried about cost, ease of use and likely resale value.

"After the early adopters, what is going to motivate the mainstream people to buy the vehicles?" asked Gurminder Bedi, a retired Ford Motor Co. executive and one of the authors of the report.

"Buying an electric vehicle just by itself, because it's better for gas mileaa think? ge, will be a good factor. But that's not going to be sufficient."
Do you mean to say that people might actually consider other questions such as "cost, ease of use and likely resale value" when making a major purchase? Who knew?