Why You Will Be Driving an Electric Car Within 10 Years, Part 2

Can't afford a new car? How about if you pay little or nothing down, and than just pay around 6 cents a mile for the use of an electric car? Does this plan sound familiar? That's because it's the cell phone model.

Does this sound like a crazy idea? Yes, however this is going to happen. Better Place has agreements with the governments of Israel, and Denmark. In the U.S they have agreements and pilot programs with Hawaii, and the bay area, in California. They expect to have 8000 electric cars signed up a month in Israel, by the end of 2011.

Remember the Nissan- Renault, $20,000. electric cars, that will travel 125 miles between charges. Nissan-Renault has partnered with Better Place. Here's how it will work: Better Place will provide the batteries. Nissan- Renault will manufacture the cars. They will have charging stations, in parking garages. You can charge up at night, or while you're at work, at your company's parking lot. There will be software in your car that will totally automate the process. The software will even guide you to available parking spaces, wherever you go, when you need charging or parking. When you don't have time to charge, you will pull into a station and swap your battery, for a fully charged one. The process is totally automated and will take about 3 or 4 minutes because the batteries are designed to pull right out, by a robot arm.

Better Place was founded in 2007 by Shai Agassi, a 38 year old, Israeli born American. Agassi was the top products executive for SAP, the large European based, software company. Better Place was founded with the help of Israeli President Shimon Perez. They have raised 200 million dollars, and have Israeli investors with deep pockets. The first charging station in Israel opened up a few days ago, as part of a pilot program.

The Israelis have strategic reasons to replace gas, with electric cars. Replacing oil will weaken Israel's oil producing enemies, like Iran. In fact, Israeli scientists have been working on alternative energy projects for years, some of them in the U.S.

Shai Agassi has talked the Israelis into building a large solar plant in the desert that will provide the electricity to charge all of the electric cars. Shai Agassi is dedicated to stop global warming. He has promised to purchase clean alternative energy, to power every car that signs on, in all locations.

Israelis currently pay 79% tax on car purchases, (wow). They will pay little or no tax, with the purchase of the electric cars. That's quite an incentive. http://www.israelnationalnews.com/News/Flash.aspx/139635

In Denmark, there is a tax of 180% on gas cars, and the Danes will pay no tax, to purchase an electric car, as part of the Better Place program. They will pay about 20,000, Euros, as opposed to around 60,0000, Euros, for an equivalent gas car.

An added incentive is the high price of gas in Europe. On Dec 17^th, 2008 the price in Norway was $7.50 a gallon. The cheapest price in Philly was only $1.60. a gallon. There's no doubt that electric cars will be coming to Europe very soon. In Denmark the surplus electricity from wind power that is currently wasted at night, can be transferred into the Better Place charging system. Better Place will use software to completely manage how and when cars are charged, preventing spikes in electricity from breaking down the electrical grid.

Shai Agassi, is the kind of guy that the Israelis like and admire. The 38 year old, is a brilliant, accomplished, risk taker. He's also charismatic, self assured, and very laid back. He's been on a world wide speaking tour. Check out the videos from their website.

When speaking, Shai Agassi is great at turning complex ideas into easily understood sound bites, and funny anecdotes. When he originally approached, President Bill Clinton, with his electric car idea, President Clinton said, "you've got to get the average guy who buys a used car, to purchase your program." "How do I do that," replied Agassi, "I don't know, you're the smart guy," said Clinton, who then, turned and walked away. That's where Agassi got the idea to use the cell phone model, and charge around 6 cents a mile. Agassi figures that Americans spend about 12 cents a mile, on their gas cars. I bet that cost has come down a little, with the falling gas prices.

In the U.S. where gas is cheap, and more people garage their cars at home, Better Place won't have as many customers. But there are good reason to sign up: If you're paying monthly finance payments on your car, now, it might be cheaper to just pay 6 cents a mile. According to Agassi, every 5 years the battery will be half the price, and half the size. It's something like Moore's law, applied to batteries.

Better Place will own your battery. So, it might be smarter, to pay 6 cents a mile and when the new, improved battery comes out, have Better Place replace it with a new one. That's because, the battery is the most expensive component in the car. That would be better than buying a new electric car on your own, and getting stuck with an obsolete battery.

The economics of buying an electric car will change somewhat with the price of gas. Even with gas at $1.61 a gallon, the electric cars are probably cheaper to operate. When the economy gets better the price of gas will go up, as demand rises. The social costs of gas cars are pollution, smog, and global warming, and the related health costs of asthma, and lung ailments, associated with the pollution.

Electric motors will be much more durable and require less maintenance than gas motors, once they have been perfected. I have an electric air cleaner that I've been running in my home, 24 hours a day, for 5 years, without any problem. Try doing that with a gas engine.

The internal combustion engine creates a lot of heat from the combustion, which is why your car requires water in a radiator, to cool it. The heat makes parts wear out at a rapid rate.

The advantages of the electric car were obvious to Thomas Edison, 108 years ago when he tried to perfect one. Actor Tom Hanks has been driving an electric SUV for 3 years. Watch the video. http://vids.myspace.com/index.cfm?fuseaction=vids.individual&videoID=19716953

There's a company in California that takes your gas engine out and puts in an electric one for about $55,000.00, that did the work on Tom Hank's SUV.

When Israeli President Shimon Perez, and Shai Agassi, talked to two, of the big three Detroit auto companies, Detroit tried to talk them into buying Hybrids, at a discount. Carlos Goshn of Nissan-Renault said, "let's make electric cars, I want to be your partner." The economics of producing a $40,000.0 Chevy Volt don't make sense. It could be that GM has invested too much into the Chevy Volt, to change course now.

I can't imagine a U.S. without GM. It will be a very sad day for me, if they go out of business. The economics of the electric car are overwhelming. I just hope that GM is around to make them.

It's hard to predict whether Better Place, Tesla Motors, or someone else, will emerge victorious in the electric car marketplace. When there is a new technology, sometimes the early movers crumble, only to have the survivors pick up the pieces. One thing is for sure. Electric cars will be here for a while.

To Read Part 1 - About The Electric Tesla Roadster Sportscar - Scroll down and click on Part 1