Will Total Recall Short-circuit the Chevy Volt?

General Motors is recalling every Chevy Volt plug-in electric vehicle ever made, in a fire safety move that threatens to engulf the entire struggling electric car industry.

All 8,000 Volt electric cars will undergo modifications designed to toughen the casing around the vehicle's battery; a procedure that will likely take to hours at a Chevrolet dealer's service center. The "customer service campaign" - GM won't refer to it as a "recall" - comes after a probe by the National Highway Transportation Safety Administration in which two Volts caught fire after simulated crash tests.

"The Volt has always been safe to drive. Now, we will go the extra mile to ensure our customers' peace of mind in the days and weeks following a severe crash," says Mary Barra, GM senior vice president of global product development. "There are no changes to the Volt battery pack or cell chemistry as a result of these actions. We have tested the Volt's battery system for more than 285,000 hours, or 25 years, of operation. We're as confident as ever that the cell design is among the safest on the market."

Lost in the coverage of the recall, however, was the revelation that more than three percent of Volt owners have already asked GM for either a loaner vehicle, or to buy back their Volt entirely. This is a startling high percentage for the car touted as Motor Trend magazine's 2011 Car of the Year, and one that was supposed to give an initial jolt to the nascent electric vehicle industry.

Now, if the public begins to associate the Volt's lithium ion batteries with a fire risk, the entire plug-in electric car industry could go up in smoke. Nissan, Ford and almost every other electric vehicle manufacturer utilize the same type of lithium ion batteries. While none of the other automakers have experienced the problems that Chevrolet has faced, the battle is more with public perception than it is with actual engineering.

Moreover, the success or failure of eco-friendly electric vehicles could have an impact on the American economy.

"The challenges to electric vehicles resemble those of many innovative transportation technologies throughout history. It would be a tragic decision to allow temporary obstacles to deny the nation the potentially transformative benefits of leveraging electric vehicles to reduce the threat of oil dependence," says Robbie Diamond, President and CEO of Securing America's Future Energy (SAFE), a nonpartisan energy security organization. "Plug-in electric vehicles are a strategic weapon to combat oil dependence. Electrification offers the opportunity to break the oil

The GM recall, and the public's reaction to it, could turn out to be a major turning point in determining whether plug-in electric cars have a future on American highways.