Electric Cars and Cheap Gasoline

The Detroit Auto Show promises to be electrifying, literally. Car manufacturers are ready to gamble on the potential market for electric cars even on the face of dropping gas prices. The opening of the North American International Auto Show was witness to big players like Ford Motor Company, Chrysler and General Motors unveiling concepts and future electric car plans.
An executive from Toyota revealed that the company planned to roll out electric cars to the U.S. market in 2012. However in the face of all this enthusiasm is the realization that all the billions of dollars that are being used in developing electric cars for sale could just come to naught if the price of natural gas stays less than $3 per gallon. According to Bob Lutz, the vice president of General Motors it would be very difficult to sell a plug in electric car to a person who has access to cheap gasoline. Prices are also of concern as electric car batteries are quite expensive. And a regular hybrid automobile can cost up to $3,000 more than a similar gasoline powered one. It is still not clear how the cost of a purely electric car would compare with that of a gas powered model.

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