WILL YOU BE ABLE TO GO ELECTRIC?

By Kirk Winter

Don’t look now but the electric car is trying to go mainstream. The electric car is no longer just the purview of a tiny elite who are both aware of the environmental advantages of these cars and have the economic wherewithal to make the purchase.

Abacus Data posed the following question to over 1,000 Canadians, “If you were buying a new car, how would you describe your attitudes towards an electric car?” The responses showed that the electric car is now at the forefront of car buyers’ consciousness with 54 percent of respondents saying they would either definitely be buying an electric car or would be inclined to buy an electric vehicle.

One of the biggest problems facing would-be buyers of electric vehicles is the shortage of available cars from all the mainstream manufacturers, but Tesla whose very pricey offerings can still be found on dealers’ lots.

More mundane EVs from Mitsubishi, Hyundai, General Motors and Ford are as hard to find as the elusive unicorn from medieval mythology. Hyundai has told dealers that there is a six-month wait for their Kona branded EV. Ford has sold the entire first year’s worth of their new Mustang EV, and demand has been so strong that the manufacturer has promised a second year of the sport SUV. A good friend who lives in New Brunswick had to travel to Prince Edward Island to purchase his General Motors branded Bolt EV.

A survey of dealers in the CKL suggested that the situation is no better here. There was not a single EV available for a test drive or purchase. Frustrated purchasers have shared in online forums that many dealers have told them that even if they could get the vehicles, they have no plan to handle EVs.

When questioned about that curious marketing decision, one service manager shared the following, “EVs have fewer moving parts and require much less service. The car industry is becoming more cut throat almost daily. Margins on vehicle sales are infinitesimal. The money is made in the garage, not the sales floor. EVs sabotage that business model.”

There are currently 25 million cars registered coast to coast in Canada. Only 136,000 are EVs, but that number is growing by the month.

Dealer sales statistics tell us that if you are serious about test driving a number of EVs before purchase, a working weekend in Quebec would be time well spent. Forty-three percent of all EVs sold in Canada are sold in Quebec. That province has passed cutting edge environmental legislation that makes the purchase of EVs very attractive. Not only do Quebec residents benefit from the $5,000 federal rebate on EVs, but the province has sweetened the pot with an additional $8,000 rebate, making the purchase of an EV more affordable for all involved. A rebate of significance once also existed in Ontario, but the Conservative Government of Doug Ford cancelled the program claiming that until EVs are made in Ontario this government will not support them with taxpayers’ dollars.

Quebec has also passed what is called the ZEV mandate that requires, by law, that automakers sell a minimum number of zero-emission electric vehicles to keep their license to sell gas-powered vehicles in the province. British Columbia has followed Quebec’s lead. The limited numbers of EVs available have found their way to provinces that have mandated minimum sales and supported those sales with generous rebates.

Mitsubishi has reported that almost their entire stock of EVs has been claimed by their Quebec and British Columbia dealer network anxious to avoid earning the wrath of their respective provincial regulators.

The Achilles heel of EV manufacture is the availability of industrial grade lithium batteries. Currently, every battery manufactured is being spoken for, in some cases many times over. General Motors, who has a long history of sub-contracting parts manufacturing to a myriad of smaller suppliers, has decided to take the lithium battery supply issue by the horns. In cooperation with LG Chemical, the car giant will be investing $3 billion in a new battery plant in Ohio that will only sell to General Motors. One automotive analyst applauds the decision taken by General Motors but cautions that, “It could take a decade or more for all the automotive manufacturers to have a viable supply of lithium batteries available for all the vehicles they may have buyers for. Executives are very uncomfortable in a massive lithium investment that could be overtaken by the next wave of technological advancements later this decade.”

Another elephant in the room for most potential EV buyers is the lack of recharging infrastructure that exists right across Canada. People want to be able to drive their EVs to work, to get groceries and to go on vacations. Charging stations are hit and miss. The typical re-charge takes between 45 minutes and an hour and needs to be done every 300 to 400 kilometres. Cold weather impacts the need to re-charge as does the use of the air conditioner in summer. Many areas of Canada do not have high speed Internet, let alone EV charging stations and those who wish to own an emissions-free vehicle find that lack of infrastructure very frustrating.

A study from Simon Fraser University suggested that until government at all levels becomes more involved, the sale of EVs and the infrastructure to support them will remain insufficient.

Consumers are clearly warming to the thought of owning EVs. Only time will tell if car manufacturers can provide enough reliable product with recharging infrastructure in place to make the new technology as convenient and cost-efficient as the fossil fuel powered vehicles that we are asking them to abandon.