Electric Cars and The Industry

Posted by: NSchepis // Student at Bridgewater State

Electric cars are closer than we think, “a much bigger risk would be to stick with internal combustion engines.” says Volvo Chief Executive. Volvo announced that in 2019 all cars will be either hybrids or battery powered cars. For a company with a small share in the vehicle market, this is a risky but smart decision in the fight against climate change.

Engines powered solely by gasoline could be becoming a thing of the past. At least that’s where the industry seems to be headed. Tesla, a company that makes solar panels and electric cars, surpassed Ford and General Motors in terms of stock market value.

In Europe, electric cars will account for all new vehicle sales by 2035 due to a breakthrough in major barriers to success, i.e. charging infrastructure, contrary to some reports of a slower progression. This is not such good news for European carmakers, which have been leaders in internal combustion engine development. They will lose their competitive advantage to their rivals in the US and Asia who already lead on battery production.

France plans to ban the sale of diesel and gas vehicles by 2040 in pursuit of their new environmental goals and as part of France’s commitments to the Paris Agreement on Climate Change. Environmental Minister Nicholas Hulot calls the decision of the world’s sixth biggest economy not only a challenge, but also a “revolution”. Even financial assistance will be available to lower-income drivers to help them replace their gas vehicles. Some challenges will remain; consumers still have their reservations about converting to an electric car.