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Technology Stocks : Energy Conversion Devices -- Ignore unavailable to you. Want to Upgrade?

To: Ray who wrote (3814)	7/11/1999 11:11:00 AM
From: Don Devlin	Respond to of 8393

Letter to the LA Times: It's Too Early to Write Off EVs * "Gas-Electric Cars May Be Right Mix for U.S. Drivers" [June 26] inaccurately represents the current status of electric vehicles. Electric vehicles have made a respectable showing in the last few years. The "dismal" number of EVs sold in the last three years isn't bad at all when you consider that EVs have been available to consumers in only a couple of regional markets; that most EVs, including Toyota's RAV4 sport-utility, DaimlerChrysler's Epic minivan and Nissan's Altra station wagon are not yet available to consumers; and that GM and Honda have had lackluster marketing aimed more at corporate positioning than moving cars. General Motors has a second-generation EV1 that has received rave reviews and for which there is pent-up demand, but none of these have been made available yet due to delays in validating the new drive-train hardware. Honda did not recently shock the industry by "pronouncing battery-powered electric vehicles a failed experiment." They did announce that they had successfully completed their planned production run of electric vehicles to satisfy their agreement with the California Air Resources Board. What is shocking is how the news media have twisted and misrepresented Honda's announcement. At the same time all of this was going on, Honda purchased from AC Propulsion two of our 200-horsepower EV drive trains--don't count Honda out of EVs just yet. Characterizing EV leases as expensive or saying EVs cost more than hybrids is folly. EV lease rates are quoted with zero capitalized cost reduction--if quoted with the same fine-print, upfront payments that other leases commonly have, the rates would look very competitive. Add to this 100% coverage of maintenance and wear items and electricity costs typically a fifth as much as gasoline for a comparable vehicle and you have a very economical overall cost of ownership. ALEC N. BROOKS Vice president of production AC Propulsion Inc. San Dimas Copyright 1999 Los Angeles Times. All Rights Reserved