Los Angeles (May 31, 2000) - Automakers today cited findings from recently released studies sponsored by the California Air Resources Board (ARB) as evidence that the state needs to reconsider its electric vehicle (EV) mandate.

Representatives from the Alliance of Automobile Manufacturers, as well as individual automobile industry representatives and others, testified before the ARB today as part of the second workshop leading up to ARB's September biennial review of the Zero Emission Vehicle (ZEV) mandate.

"The facts are simple and supported by third-party analyses in state-sponsored studies. Current EV requirements cannot be met. EV costs far exceed the price consumers are willing to pay. Technology breakthroughs for EVs are not expected in the near term," said Steven Douglas, director of environmental affairs for the Alliance.

On May 24, ARB posted the conclusions of a Battery Technology Advisory Panel Report on its Web site. This report confirmed that battery costs continue to be high and driving range is limited. The single most limiting-and expensive--component in an electric vehicle is the battery, and no advancement is expected that would lower the cost or increase the performance. Without a breakthrough in battery technology, the ZEV mandate cannot be supported.

On April 26, the University of California (UC) Davis released results of a cost study sponsored by ARB that examined lifecycle cost comparisons between comparable gasoline-powered and electric vehicles, for both midsize and subcompact automobile styles. The analysis of costs included vehicle components such as batteries and tires; fuel costs such as gasoline and electricity; and maintenance and repair costs. Study findings indicated that the battery component dominates the cost of the EV, and that retail prices for EVs were higher than conventional vehicles in all cases.

Both the Battery Panel Report and the UC Davis Cost Study acknowledge that the cost of electric vehicles will be much higher than equivalent-sized gasoline vehicles for the foreseeable future. Even at the production volume required by the mandate, both studies indicate that the cost to produce an electric vehicle would still be significantly higher than that of a comparable conventional vehicle, and more than automakers believe consumers are willing to pay. "These EVs won't improve air quality if they sit unsold in dealer car lots," said Douglas.

"Alliance members are firmly committed to the state's clean air goals and are producing vehicles today cleaner than anyone could have imagined at the time the ZEV mandate was put in place. We will continue to improve technology for the future," said Douglas. "However, it is clear from our experience over the last five years and from these state studies that the ZEV mandate for 2003 cannot be met."

Automakers are already offering more than 25 vehicle models powered by alternative fuel. Today customers can choose between clean-burning natural gas, LPG (liquefied petroleum gas), and ethanol. For the future, manufacturers are seeking advanced technologies that offer substantially lower emissions in a vehicle that meets the expectations of customers.

The Alliance of Automobile Manufacturers is a coalition of 13 car and light truck manufacturers. Alliance member companies have approximately 600,000 employees in the United States, with more than 250 facilities in 35 states. Alliance members represent more than 90 percent of U.S. vehicle sales. For more information, visit the Alliance website at www.autoalliance.org.