Friday, June 30, 2006

Hybrid Cars, Technology & American Consumers: The Foreign Oil Dependency Crisis or Opportunity?

Technology, such as that in hybrid cars, must be embraced by American consumers and American automakers, or America's foreign oil dependency will become one of America's most challenging crises, rather than a huge opportunity.Responding to some bloggers this morning I came to the conclusion that U.S. foreign oil dependency has become, if not the, at least one of the major defining moments in U.S. history. With much of American geopolitics being determined by oil, and one of America's most important job sectors dependent upon oil, foreign oil dependency has become a tremendous and dangerous crisis, but a crisis that poses huge opportunities.

Still, foreign oil dependency will only become an opportunity if seized upon by the American consumer. (Full Story)

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1 Comments:

Blogger Dahcredyns said...

(Rest of Story)

One of the bloggers I responded to today claimed, "The technology in use on today's vehicle means nothing to the consumer." I sure hope that's incorrect, and if it isn't, that sentiment needs to change.

The blogger was responding to an article in which I explained my preference for Toyota hybrids over Honda hybrids . Quite simply, I believe that Toyota's hybrid technology offers far more upside than Honda hybrid technology.

Toyota hybrid technology not only serves as an important building block for fuel cell vehicles, it also offers superior urban transportation today - in terms of fuel efficiency and emissions. Additionally, it offers huge upside in terms of being combined with clean diesel, flex fuel or hydrogen engines, and with lithium-ion batteries, a 90 mpg Prius is very likely, as is a 120 mpg+ plug-in Prius.

This doesn't mean I don't advocate the purchase of a Civic hybrid, or any of the other Honda hybrids, it just means that I think Toyota hybrid technology is more important to the future than Honda hybrid technology. Consequently, as a consumer, I feel that Toyota should be rewarded for this investment in the future.

Why? Ultimately, I believe it is only technology, such as hybrid cars, that can turn America's foreign oil dependency into an opportunity. Essentially American consumers must embrace technology as THE solution to oil dependency if America is to remain the economic powerhouse it is today.

While some clamor for conservation, ethanol, or even french fry grease - all are just a drop in the oil dependency bucket. I absolutely believe in conservation, but most Americans aren't going to conserve enough - either by choice or necessity - to make enough of a difference. More important, a huge conservation movement would destroy the American auto industry and probably the American economy.

Ethanol, on the other hand, is a great alternative fuel source, as are many other biofuels. Still, how much energy will be required to create these other biofuels, how much water, how many tons of pesticides and fertilizers? How much of our dwindling, but extremely important top soil will be lost? Regardless, technology will still be required to enable ethanol to achieve any serious level of oil reduction, such as by leading to better ways of producing cellulosic ethanol.

Nonetheless, if America's fuel economy doesn't improve greatly, as millions and millions of extra vehicles hit the road each year, ethanol will only fill the void produced by America's ever increasing need for even more fuel. Thus ethanol might not really change anything, other than making a few extra farmers rich, but let's get back to technology.

Ironically, the greatest impact of new automotive technology isn't even the end of foreign oil dependency, as great as that would be, but rather new economic potential.

Some 50 years ago, America began developing the Interstate system, making America the most important automotive market in the world. Today, China is working on a similar road system and India won't be far behind. With billions of new drivers hitting the road over the next few decades, the need for extremely fuel efficient vehicles will be absolutely necessary.

In these emerging markets, America's greatest opportunity is technology. Cheap labor is not going to keep American automakers competitive throughout the world, but the greatest automotive technology can.

For decades complacent automakers, a change-is-bad auto union and poor consumer choices have put America's economy and National Security at great risk. Sure, some changes have been made in recent years. For example, the Ford Escape hybrid is a great hybrid vehicle, and the upcoming Chevy Tahoe hybrid will be a much better choice for Americans than a conventional Tahoe.

Inevitably, however, American automakers must take on the Toyota Prius. Once before America conceded smaller vehicles to Japan, and history now speaks for itself on that issue. To now concede the most fuel efficient hybrid cars to Japan in the midst of oil shortages, foreign oil dependency, and pollution is a sure recipe for disaster.

Unfortunately, rather than focusing on fuel efficient technologies, Detroit is much more focused on ethanol. Sure E85 can buy Detroit a little time and help America a little, but it won't help America turn foreign oil dependence into an opportunity, it will just delay the inevitable consequences of the foreign oil dependency crisis.

As consumers we cannot be afraid of technology, instead we must embrace technology and reward those companies that utilize technology to help create a better world for the people, rather than just to create profit. Together, American consumers can turn the foreign oil dependency crisis into one of America's greatest opportunities.

4:15 PM  

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