$10,000 Rebate for Eco-Car is a Short-sighted Venture

Though the Premier of Ontario, my home province, has taken a giant step - one that appears good for growth in the manufacturing sector, green, and generous - I ask myself, “Is the step one that is forward, sideways or backward?”

The step --- to offer a $10,000 cash rebate on the purchase of an electric car e.g. the GM Volt, or any other make of electric-hybrid vehicle, for those who can afford the rest of the tab, of course.

The above step, which could cost the province (or taxpayers) $3 billion by 2020 (not including the cost of infrastructure to support the vehicles, or the 3.5 billion already sunk into the failing GM company) has its supporters and critics.


["Didn't Toledo, Ohio, and London, Ont., once have electric infrastructure?"]

Robert M., a supporter, sent me the following thoughtful and informed comment:

“The thing is, we're in a chicken or the egg sort of situation. We need the infrastructure to support electric cars before people can switch to them but we need enough people driving electric cars to justify building the infrastructure for them.”

“In order to solve dilemmas such a this we need the government to step in and McGuinty is doing so by providing an initial market and infrastructure for electric vehicles.”

“Once he does this the free market can then take over so there's no need for the initiative to be anything but a short term one.”


["How do we get the biggest bang for the buck?"]

On the other hand, industry analyst Dennis DesRosiers, president of DesRosiers Automotive Consultants Inc., said the following shortly after our Premier revealed his plan:

“Electric vehicle technologies are an incredibly exciting development in the automotive sector and could be a very significant part of the future of this sector,” Mr. DesRosiers wrote in a note to clients Wednesday.

“But if it takes a bribe of $10,000 to get a consumer into these products then the technology will never succeed.” [Other criticism].

My thoughts:

The situation may indeed be a one involving a chicken and an egg, and we certainly need to hatch a good plan for the sake of future generations.


As I said to Robert:

“Without giving too much away, I'll say now we do need infrastructure for a new type of transportation model, and government involvement is key.”


["Can we best afford to move people individually or en masse?"]

"But what type of transportation model, or chicken (or is it the egg?), will be the easiest to sustain 10 - 20 years down the road?"

More to follow.

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Would you buy an electric car or wait for something even better?

Is there something even better?

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