Better East Texas: Auto industry moves toward electric power

(KLTV) - It is a warning shot on a changing market that was not even imagined a decade ago, but the world auto industry is slowly - very slowly – going electric.  

Volvo announced it will not design any pure internal combustion engine models after 2019. They will, instead, be migrating to full electric or electric hybrid models. Now, that move will take several years to complete but it is a sign of things to come.

The Volvo move is a result of tough carbon emission requirements and the consumer push in Europe to move away from diesel engines. Volvo joins Tesla in this design platform, and while both combined are minor players in their share of the US auto market, they are growing. Additionally, Volvo is owned by a Chinese company, and China is also a growing market with high demand for electric cars.  

So, again, this is a warning shot that the auto industry is slowly migrating away from the internal combustion engine. There are approximately 500,000 electric cars on the road in the US and with total annual new cars sales hovering around the 15,000,000 mark, you can see that electric autos are still infants in the marketplace. And inexpensive gas has helped maintain the use of traditional powerplants in cars.

But now is the time for energy companies to start diversifying their production strategies and incorporate an increasing demand for energy to power the changing fleet in America. It is rare that we get this kind of runway, and it needs to be coordinated between manufacturers and the auto industry.

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