Speaking at a symposium on electric vehicles (EVs) in Toronto, the vice president of Magna E-Car Systems, Dave Pascoe, admitted that even though numerous automakers have committed to producing EVs, the likelihood that these vehicles will have broad appeal depends almost entirely on the price of gasoline. Pascoe believes that high up-front costs will restrict sales of battery-powered vehicles unless the cost of gasoline tops C$1.36 per liter ($5 a gallon U.S. at the current exchange rate.)

E-Car System is a spin-off company formed by Magna International, the world's third-largest automotive parts producer and this at least partially explains Pascoe's reasoning. You see, Pascoe believes that higher production volumes will drive down the costs of EVs and he's probably right. But Pascoe also hopes that multiple automakers will turn to Magna for common EV-related parts that will be used on a wide range of vehicles. The commonality of parts should help automakers boost volume and quickly introduce additional battery-powered vehicles. Increased volume should make EVs more wallet-friendly and their shared components, supplied by Magna, should help the parts producer pocket a ton of cash. Well, at least that's how Magna sees it.

[Source: CTV News]