The Electric Car Revolution Starts Now!

For years, we've been singing the praises of electric and plug-in hybrid electric vehicles (PHEVs). We even devoted an entire section to them in our book, Investing in Renewable Energy. But only within the past year or so have we seen some real progress on manufacturing these fuel-efficient vehicles.

Sure, there have always been start-ups, universities, and forward-thinking engineers who spent years building their own electric vehicles. But only now are we starting to see the major automakers putting aside their prejudices (which nearly put some of them out of business), and moving forward with their first generations of highway-capable electric and plug-in hybrid electric vehicles.

So let's take a look at what's coming down the pike in the next few years. . .

General Motors

It's the car that critics love to attack. It's also the car that owners claim is the best car they've ever owned.

Regardless of where you stand on GM's Chevy Volt, there's no denying that the introduction of this vehicle represented a major event. It was the first time a major automaker produced and sold an extended-range electric car, thereby giving EV supporters and enthusiasts the opportunity drive an electric car, but with the safety of gas-powered backup.

The Volt can be driven about 35 to 40 miles in all-electric mode. If you need to travel further, the car can travel an additional 350 miles on gasoline. Although not a pure electric vehicle, it offers an excellent introduction to electrified personal transportation for consumers.

Nissan

Nissan's all-electric LEAF hit the market in 2011. More than 20,000 were sold in its debut year. A truly impressive accomplishment.

The LEAF has an all-electric range of up to 100 miles, although most folks seem to regularly get around 70 to 80 miles per charge.

Ford

In January 2009, Ford announced a new electrification strategy involving three types of vehicles:

• Battery Electric Vehicles (BEV)

• Hybrid Electric Vehicles (HEV)

• Plug-In Hybrid Electric Vehicles (PHEV)

The company's HEVs are already well-known and don't need to be detailed here. While HEVs certainly help decrease fuel consumption, we are going to focus on the electric vehicle and PHEV.

Due out this year is Ford's all-electric Focus. The all-electric car will have a range of about 100 miles, giving Ford an opportunity to cater to early adopters seeking an all-electric offering from a U.S. manufacturer.

In development right now is Ford's C-Max Energi, which is a plug-in hybrid version of the Ford C-Max. There is no word on an all-electric range, but Ford representatives claim it will have a total range (both electric and non-electric combined) of about 500 miles. This is about 125 miles more than the Volt.

Toyota

Available this year is Toyota's Prius Plug-In. It's basically a Prius upgraded to a plug-in hybrid electric vehicle. Although you can only get about 15 miles in all-electric mode, combined with the traditional Prius hybrid system, your total miles per gallon equivalent comes to 87. Not bad at all. Also, a silver lining to the limited all-electric range is the ability to charge in just 3 hours on a regular 120 volt outlet or about an hour and a half at a 240 volt charging station.

Toyota is also expected to release an all-electric RAV4 model in 2012.  We have been told that the target range on this one will be 100 miles.

For those who don't need the additional space an SUV offers, Toyota is also electrifying a version of its smallest car, the Scion iQ. Although it is about the size of a Smart car, analysts are expecting to see a very competitive price tag. And with 50 miles of all-electric range, if the price is right, it could be a real winner for urban commuters.

Mitsubishi

Japanese automaker Mitsubishi began fleet sales of its electric vehicle, the i-MiEV, in 2009. This vehicle has an all-electric range of 80 miles with a top speed of 80 mph, and is now being sold in the U.S. Although the U.S. version will be about a foot longer, and much wider and roomier than the model currently sold in Japan. It will also carry the name "i" instead of i-MiEV.

The Mitsubishi “i” gets about 60 miles per charge.

BMW

Although only a concept vehicle for now, the BMW i8 boasts an all-electric range of 80 miles, and its high-speed charger can allow for an 80 percent battery charge in one hour.

Available only to a limited number of customers at the moment, the BMW ActiveE is a sleek vehicle offering a 100-mile all-electric range with a top speed of 90 mpg.

Porsche

Don't expect anything ordinary from Porsche when it starts selling its electric Boxster-E. Losing nothing on style, the Boxster-E offers an all-electric range of 100 miles. Of course, Porsche is actually owned by Volkswagen, so let's move on to that German automaker.

Volkswagen

In 2011, Volkswagen unveiled a two-seat plug-in hybrid at a car show in Qatar.

The vehicle, known as the XL 1, was touted as having a driving range of 261 miles per gallon. And although it'll only get you about 22 miles in all-electric mode, the design of the car allows for some pretty impressive fuel economy.

With a two-cylinder diesel engine and the extensive use of carbon fiber in the body, the 2.6 gallon fuel tank will give you a driving range of 341 miles.

In 2013, Volkswagen plans to start selling its Golf blue-e-motion. A design throwback to the VW Golf of the 1970s and 80s, the new electric model pulls of about 90 miles per charge.

Tiny on the outside, yet surprisingly roomy on the inside, Volkswagen's E-Up! Has a top speed of 184 mph and an all-electric range of about 80 miles.

Honda

Honda's Fit EV is currently only available as a lease in California and Oregon. The vehicle is 100% electric and delivers an all-electric range of about 100 miles.

Hyundai

Powered by a 16kWh lithium-ion battery, Hyundai's i10 electric has a top speed of about 80 miles per hour, with an all-electric range of roughly 100 miles.

Smart Fortwo Electric

Now with its third generation hitting showrooms, the Smart Fortwo offers an all-electric range of about 85 miles, with a top speed of 75 mph.

Kia

Only available in Korea, the Kia Ray EV is a city car boasting an all-electric range of 86 miles and an on-board gps that alerts the driver to the nearest charging stations.

Expected to hit European streets later this year, the Kia Venga EV offers a 90-mile all-electric range. Production, however, will be limited to 2,000 units in 2012 until full production begins in 2013.

Byd

Based in China, BYD launched its first mass-produced electric car in 2008. It's called the F3DM and it is available in 14 Chinese cities. The vehicle gets about 60 miles on one charge, and has a top speed of about 100 mph.

These days, BYD's promoting its E6 – a 5-seat crossover electric that boasts an all-electric range of about 180 miles, and a top speed of 87 mph. Currently, the E6 is only available in China.

Tesla Motors

Tesla made waves a few years ago when it debuted the Roadster – an all-electric sports car with a 200+ mile range and a top speed of 125 mph. There were only a limited number made, but Tesla's next offering, the Model S, will be available in 2012.

The Tesla Model S offers a 160-mile all-electric range. Although an upgraded version can get you 300 miles per charge. It's a sweet car that has already sold out of its first production run thanks to an overwhelming number of pre-orders.

As a side note, Tesla is also providing the lithium-ion batteries for the Smart fortwo electric.

Fisker Automotive

In 2007, Fisker Coachbuild, LLC and Quantum Technologies formed a joint venture partnership to build the Fisker Karma — a PHEV with a top speed of 125 mph. Delivering 50 miles in all-electric mode before the gasoline engine kicks in, the Karma is a luxury PHEV.

Coda Automotive

The Coda electric vehicle's all-electric range comes in at about 150 miles. The vehicle also comes equipped with Sirius satellite capability for all those folks who require their morning dose of Howard Stern, and want to get the poison out.

Audi

Audi's A1 e-tron is an electric car with a range-extending rotary engine. In all-electric range, you get about 30 miles. After that, the small rotary engine recharges the batteries, giving you another 124 miles.

Volvo

Due out this year, the Volvo V60 PHEV offers an all-electric range of about 30 miles. But when combined with the internal combustion engine, you'll get about 750 miles of total range. Perfect for daily commutes in all-electric mode, and perfect for those long road trips, too.

Smith Electric Vehicles

While we're definitely excited to see the shape of electric vehicles to come, we can't concentrate solely on personal transportation. Especially when there's just as much (if not more) opportunity in the commercial sector.

After all, those big commercial trucks log more miles and require more fuel than even the biggest gas-guzzling SUVs found in so many driveways today.

As a result, with oil prices so volatile these days, many commercial truck operators are now scrambling to find new or replacement vehicles that aren't completely reliant upon gasoline and diesel. And that's opening the flood gates for dozens of new outfits that can supply electric and hybrid-electric commercial trucks.

One of the most aggressive companies to hit this market is Smith Electric Vehicles.

Smith offers two trucks: The Edison and The Newton.

The Edison has a payload capacity of up to 5,000 pounds. Chassis configurations include Chassis Cab, Panel Van and Mini Bus. Unfortunately, this 100-mile-range electric truck is not available in the U.S. The Newton, however, is.

With a payload capacity of up to 16,200 pounds, the Newton offers an all-electric range of between 40 and 150 miles.

Both the Newton and Edison are quite popular, and can be found in fleets for Staples, Sainsbury's, KCP&L, FedEx, and the U.S. Army.

It's time. . .

After decades of complacency, the world of auto manufacturing is finally starting to evolve.

While it won't happen overnight, the days of gas-guzzling SUVs and unacceptable fuel economy standards are coming to an end. They will be replaced by market-influenced fuel economy standards and electric and plug-in hybrid electric vehicles that will ultimately deliver all the convenience, power, speed and status that our car-centric nation has come to enjoy and expect.

Of course, we're only at the beginning of this very exciting transformation. And especially over the next few years, we're going to see amazing things. . .

• New battery technologies that'll up the ante on driving ranges

• Quick-charge technologies that will enable consumers to repower their cars in less than 10 minutes

• Dramatic price reductions for electric and plug-in hybrid electric vehicles

• New start-ups that will go toe-to-toe with the majors — igniting some fresh competition that's always good for the marketplace (and the consumer)

• Much-needed reductions in oil consumption

The last bullet point is definitely the most important. And electric and plug-in hybrid electric vehicles provide a real solution when it comes to reducing oil consumption.

According to the Bureau of Transportation Statistics, 78% of daily commuters in the U.S. drive 40 miles per day or less. And as you probably also know by now, most electric and plug-in hybrid electric vehicles being developed today are focused on delivering 40 miles or better.

Now according to the most recent U.S. Census data, 112,904,000 working Americans over the age of 16 drive or are driven to work. So that gives us a rough estimate of about 88 million daily commuters, driving no more than 40 miles per day.

If half of those folks had access to an electric or plug-in hybrid electric vehicle that delivered the necessary miles per charge to get from point A to point B. . . that's 44 million daily commuters who would not require a single drop of gasoline.

Assuming the average fuel economy for these passenger cars is 27.5 miles per gallon — the current corporate average fuel economy standard is for passenger cars — a typical commuter driving 40 miles per day would go through 1.45 gallons per day.

Based on those 44 million commuters, you're looking at a consumption rate of 63.8 million gallons of gasoline per day. It takes about 2.1 gallons of oil to make one gallon of gasoline. So that comes to about 133.9 million gallons, or 3.19 million barrels of oil being displaced. That's about the equivalent of 50 percent of our daily imports from OPEC.

And this does not include commercial trucks. Very soon we will be electrifying sweepers, tow trucks, garbage trucks, etc.

Yes, my friends — the cars of the future will overwhelmingly be electric.

And the opportunities stemming from this transformation will be the catalyst for a new way of life, and a new generation of wealth.