Volt sales slow; 'solid growth' seen

DETROIT (WOOD) - The road to getting more drivers behind the wheel of electric-powered vehicles has been bumpy and slow. But a GM official said there is no question electric vehicles will become more popular as the years go on.

Despite a lot of enthusiasm on the floor for the North American International Auto Show in Detroit, sales of battery-powered cars like the Chevy Volt don't seem to hold much of a charge.

Built in the Motor City, the Volt's supply line and jobs its created stretch into West Michigan. The Volt's batteries are made in Holland by LG Chem.

The Volt "drives a lot of new suppliers and a lot of new support to that technology," said Jim Federico, GM's Global Chief Engineer for Electric Vehicles.

He downplays their slow roll off the showroom floor. "We were thinking somewhere between 6,000-10,000 (sold). We ended up the year at 8,000."

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Photos: 2012 Detroit Auto Show

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But the Obama administration has a goal of putting 1 million electrified vehicled on the road by 2015. Federal and state governments have invested heavily in the green machines. According to an analyst with the Mackinac Center for Public Policy , that investment totals $3 billion in direct money and tax incentives.

General Motors "did invest in (the Volt) ourselves," Federico told 24 Hour News 8. "Remember, this has been around. We've been developing this for four years. And even before that, a lot of the components came before that, so GM has been developing it and planned on and stuck with it and brought the Volt to production with or without any help."

Auto analyst Mike Wall with IHS Worldwide told 24 Hour News 8 he believes "realistically, we're probably another five, six years out, at least, before we really start to see the uptick in volumes" for electric vehicles.

Increased corporate fuel economy standards set to take effect in 2016 and 2025 will push the need for more fuel-efficient vehicles, he said.

"The challenge is getting there from here, and it's going to be a slow slug," he said. "With gas at $3.50, $3.60, it's not an easy business case for the consumer. And we need to get the pricing of the batteries down. We will see that as more and more of these, some without the hybrid options, you will see the price of batteries come down."

GM's Federico is not worried.

"The question is not, 'Will it grow?' It will absolutely grow. It's just at what type of ramp," he said. "We expect it to be a slow growth, but a very important and solid growth."