With over twenty electric car models arriving at dealerships over the next three years, auto manufacturers feel that the battery powered cars will be the next big seller. The Obama administration is giving more than five billion in tax credits to buyers, and subsidized loans and grants to automakers in an effort to meet the goal of one million hybrids or electric cars on U.S. roads by 2015. But skeptics feel that hybrid and electric vehicles don’t make sense for most drivers, even with tax credits. Electric cars are too expensive, take too long to recharge and don’t provide enough driving range to be practical for most Americans. They feel that only 3% of drivers will actually buy the vehicles, because in order for electric cars to be cost effective for buyers, gas prices will have to rise to almost nine dollars a gallon.

Nonetheless, some of the biggest manufacturers in the auto industry are rushing to produce EVs. Honda recently pledged to put out an EV in 2012. Toyota is creating an electric version of its RAV4 sport-utility vehicle with Tesla Motors and a subcompact electric car based on its tiny IQ. Ford plans an electric version of its Focus compact and an electric van. BMW is building the MegaCity electric vehicle, which will feature carbon-fiber body panels to reduce weight and boost driving range.

Much of this is spearheaded by California’s laws that are requiring that the top six auto makers in California offer a zero-emission model by 2012 or face potentially huge fines. The only other alternative is to build electric models under the U.S. Environmental Protection Agency’s clean-air and fuel-economy standards, which are set to get tighter in 2012, and receive government credits.

Tesla has announced that it will be recalling all Roadster 2.0 vehicles built between July 2009-June 2010 as well as all Roadster 2.5 models built between July 2010-September 2010. This comes after a complaint from a customer who reported a fire behind the right front corner of the vehicle. The problem is being blamed on a low voltage auxiliary cable chafing against a panel causing a short. This issue is limited to the 12V low voltage auxiliary cable and does not involve the main battery pack or main power system.

In the recall, Tesla technicians will check the routing of the cable and install a protective sleeve to prevent further chaffing. Tesla has started notifying customers via email and has initiated a mailing campaign. The repair will be done at the customers’ homes or offices and will take approximately one hour.

Since the end of 2009, China has become one of the largest auto manufacturers and markets in the world. The number of registered vehicles on the road in China reached 62 million in 2009, and is expected to exceed 200 million by 2020. Almost half of the cars manufactured and sold in China are Chinese vehicles, the rest are being produced by joint ventures with foreign car makers such as Volkswagen, General Motors, Hyundai, Nissan, Honda, Toyota,… etc.

The negative impact of cars in Chinese cities is already obvious. Congested roads, car accidents, fuel shortages, air pollution, parking difficulties,…etc, have already become issues. Government officials warn that overcapacity of the market will lead to negative market competitiveness, a loss in enterprise efficiency, factory stoppages and other problems. Analysts feel that the development of green energy vehicles is the best way for China to reduce the environmental impact the exploding auto industry will have on their country.

The green industry in China may seem like a good market to get into, but the hope that American workers will see their products exported to this rich foreign market are not good. China will only do business with companies who share their intellectual property and who manufacture in their country. A foreign company must enter a joint venture with a Chinese firm, and that the firm has to have substantial ownership of the intellectual property, otherwise, there will be a duty on making the car in China.

The White House has already got a jump start on electric technologies by encouraging construction of plants that make electric cars, batteries and parts that go into them. According to the Obama administration, the United States is on track to produce 40 percent of the world’s battery technology by 2015. The industry expects the American market to gobble up most of that supply. In order to keep jobs here, U.S. demand for EV components must rise, otherwise the risk of exporting yet another industry away from U.S. soil will be the result.

As states across the country brace for the wave of electric plug in vehicles to hit the streets, utility companies warn that there could be glitches. A smarter electrical grid has been developed to accommodate the surge in power usage, and utility companies have been working with the automakers to ensure a smooth transition, but too many drivers trying to charge their vehicles at the same time, could lead to low voltage situations.

Executive vice president and chief operating officer of Novi-based ITC Holdings Corp., said that as plug-in use grows and more public charging stations are installed, substations or lines may need to be upgraded. Experts, however, don’t believe electric vehicles will be widespread until 2020, giving utilities at least a decade to figure out ways to handle new loads and educate consumers about scaling electricity during peak times.

For now, utilities are installing smart meters in homes and businesses to help consumers better manage electricity use. The meters allow utilities to charge rates based on peak and off-peak use and track that data. This will encourage drivers to charge in off peak hours as well as give information on where upgrades need to be made. As technology advances, cars plugged in for recharges could actually help the grid, said Scott Miller, director of Coulomb Technologies’ ChargePoint America. “These can act as remote storage units, transferring some of the energy from the cars back to the electrical grid in times of need.”

Toyota has set itself up as one of the top hybrid makers in the world with the development of one of the first hybrid vehicles, the Prius. They share their technology with companies like Nissan, Mazda and Ford, which allows them to produce hybrids in larger numbers while keeping the cost down. Recently, Toyota has partnered with Tesla Motors to develop and electric version of Toyota’s RAV4 crossover. The RAV4 EV will be making its debut at this years LA Auto show, and will begin selling the model to the public in 2012.

Japanese media reported this Friday that Toyota may be expanding it’s hybrid empire. Dailmler is working on its own hybrid technology and has approached Toyota about sharing its gas electric hybrid technology with them. The two companies have been in negotiations for over a year now, so an official announcement is expected soon. If the deal should go through we could see Toyota technology showing up in Mercedes-Benz vehicles as early as 2012.

Chevrolet and OnStar unveiled the first working smartphone application that will allow owners 24/7 connection and control of vehicle functions and OnStar features remotely. The first to receive this new technology will be the Chevrolet Volt electric vehicle which is scheduled to hit the show rooms later this year.

The Chevrolet Volt OnStar smartphone application is designed to enhance the Volt ownership experience with interaction and control never offered before.

  • With this application, owners will be able to remotely monitor and charge their vehicle and can be sent an e-mail informing them of the status.
  • Traditional OnStar features such as door lock, unlock and remote horn and lights – which have typically been accessible only through a call into the OnStar call center – will now be available via the application.
  • Volt drivers can also view and manage vehicle systems and commands from the vehicle, the internet or through a monthly OnStar Vehicle Diagnostics e-mail.
  • The new services, including the ability to read text messages aloud, play music from the Internet-based provider Pandora and post updates to Facebook, won’t be available for a few months, but these and other apps are in the testing phase.
  • Additional upgrades that OnStar is planning include hardware to turn the cars into roving Wi-Fi hotspots. This will allow passengers to share the wireless Internet connection using other devices, like laptops and tablet computers, in the car. The Wi-Fi option won’t appear in 2011 models, but they could be upgraded with U.S.B. attached Wi-Fi routers in the future.

Chris Preuss, president of OnStar said that OnStar is taking a measured approach and is sensitive to the issue of driver distractions. “There’s the issue of what you can do, and then there’s the issue of what you should do,” he said. “We are going to be extremely vigilant on this issue. Just because something is possible, doesn’t always mean we should do it.”

It is no secret that Toyota and Tesla have joined forces to develop an all electric Rav4 that they hope will shake up the electric vehicle market. Tesla has already delivered a working RAV4 EV to Toyota earlier this summer and will debut it to the public at the Los Angeles Auto Show.

The vehicle is likely to be one of the stars of the Auto Show, which traditionally hosts “green” vehicle debuts. GM’s Chevy Volt and Nissans Leaf will also be there, but Toyota’s Rav4 hopes to attract the consumer who wants an electric vehicle, but wants something bigger than a compact car.

As both GM and Nissan get ready to release their electric cars later this year, the electric car wars are starting to heat up already, resulting in benefits for the consumer.

GM announced the Chevrolet Volt would start at about $41,000, $8,000 more than the Nissan Leaf, but GM will also match the $349 per month lease deal that Nissan is offering on their car. Nissan fought back by announcing they would match GM’s battery warranty of eight years, 1000,000 miles.

Both vehicles will cost more than a comparable gas engine car, but the lease deals make them quite competitive. If you take into consideration the savings at the pump, the federal tax credit, and the additional tax breaks offered in some states, the new electric vehicles are in the budget of mainstream buyers.

Both Nissan and GM say the base models of their cars will come nicely equipped. Both have navigation, multiple air bags and premium audio systems standard. Options for both include backup monitoring cameras, leather seats in the Volt, and a solar-panel spoiler that generates electricity on the Leaf.