Interesting reprecussions for Edison the company that was building the re-charging stations.
Edison Intl Closing Unit That Installs Car Chargers (Update1)
Edison Intl Closing Unit That Installs Car Chargers (Update1) (Closes shares.)
Rosemead, California, April 29 (Bloomberg) -- Edison International, the eighth-largest U.S. power company, said it will close its unit that installs electric-car charging stations because of weak sales of battery-powered vehicles.
Edison installed 250 chargers in California and Arizona after its EV unit opened in 1996. Only 2,500 electric autos were sold or leased in the U.S. in that time as the high cost, short driving range and slow acceleration of battery-powered cars limited their mass-market appeal. Most of the cars were leased by government agencies required to use low-emissions autos.
The move comes as Honda Motor Co., the No. 5 automaker in the U.S., said this week it's ending production of its EV Plus electric-powered car as it prepares to build a hybrid electric- gasoline vehicle this year. Automakers are shifting their focus to developing fuel-cell and hybrid technologies to meet tighter government pollution-control standards. ''The electric-battery vehicle market is very, very small and it's not likely to get any larger,'' said Gloria Quinn, an Edison spokeswoman.
The Rosemead, California-based power company plans to close the eight-person unit in the next six months. It's looking for another company to take over maintenance of the existing charging stations, Quinn said.
The California Air Regulations Board criticized the decision, and said it will investigate whether the move violates the U.S. auto industry's agreement with the agency to produce battery-electric vehicles if consumer demand warrants.
Honda met its commitment to lease at least 300 battery- powered vehicles within three years, spokesman Art Garner said. The automaker is based in Tokyo and its U.S. business is based in Torrance, California.
Automakers such as Toyota Motor Corp., General Motors Corp. and DaimlerChrysler AG said they will produce electric-battery powered cars while pursuing other fuel-efficient technologies. GM and Toyota last week announced a venture to develop more low- emission, high-mileage vehicles, while Ford Motor Co., DaimlerChrysler agreed to test a fuel-cell vehicle fleet.
Edison shares rose 7/16 to 24 1/16, while Honda's American depositary receipts fell 9/16 to 91 11/16. The plan was reported in today's Los Angeles Times. Edison shares have fallen 14 percent this year, while Honda rose 37 percent.
Here is the link for more on Honda and Edison
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