What's the problem? Congress, Hybrids and Clean Vehicle Tax Credits
Is Bush more green than Congress?President Bush is certainly not going to win any awards for being the greenest President. Still, for at least 6 months the President has asked Congress to extend tax credits for hybrid vehicles. Yet, Congress has done nothing.
Sure, GM and DaimlerChrysler have not sold any full hybrid vehicles and are sitting on more than 100,000 full tax credits, while Toyota has already used every full tax credit. So, why should Congress do something that only benefits Toyota?
Because foreign oil dependency and global warming demand action now, not tomorrow, and not after a global warming committee is formed. NOW. Members of Congress have talked a lot of tough talk regarding global warming and foreign oil dependency, but they've taken very little real action.
Power to the People
Raise fuel economy by raising CAFE, Congress tells us. Fine. Do it. Automakers, however, will still need financial incentives. So, why not get started right now? Extend and uncap the tax credits for hybrid cars, and put those financial incentives into the hands of consumers, rather than executives more beholden to shareholders than to citizens and to consumers.
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Labels: Congress, Foreign Oil Dependency, global warming, Hybrid Vehicles, tax credits
posted by Dahcredyns at
9:36 AM
3 Comments:
(Rest of Story)
Already Toyota's hybrid success has completely changed the thinking of all automakers, and Toyota's continued hybrid success will change the actions of all automakers - at least those planning to survive into the future.
What was a joke just a few years ago to GM and other automakers, is now the buzz of the auto world. More important, it's the buzz of the consumer world and by putting consumers largely in charge, automakers will have to compete for incentives, rather than just having those incentives handed to them. Quite simply, those with the best products win.
It's a gas, gas, gas tax
Instead of mocking Toyota, if every automaker had been as aggressive as Toyota regarding hybrids, millions of hybrid sales per year could have been possible before the decade was over. Still, if tax credits are extended, Toyota might yet achieve yearly hybrid sales of more than a million hybrids alone before the end of the decade.
And, ultimately, nothing can exert more healthy pressure on other automakers than good old competition.
Besides, there is a perfect way to fund the hybrid revolution - a gas tax.
Tax gasoline and petroleum-based fuels and use the tax revenues to fund clean vehicle tax credits. Not only would such a tax make hybrid vehicles more accessible to consumers, it would make alternative fuels more cost-effective. More important, it would force consumers, not just automakers, to make better choices and to take more responsibility for the consequences of their actions.
Ultimately, Congress cannot just blame automakers and tax oil companies. At some point, consumers must be involved. Actually, consumers shouldn't just get involved, they should lead the clean vehicle revolution, and nothing would make it easier for consumers to take action than tax credits and a gasoline tax.
Reward positive actions. Punish negative actions.
This is something Congress can take action on today, without lengthy global warming committee discussions. We already know that foreign oil dependency and global warming will ultimately cost America 100's of billions, if not trillions, of dollars.
So, what's the problem?
While I was watching part of the Super Bowl yesterday, I was discouraged to see Chevy’s market focus. In one ad that Chevrolet aired, they showcased a laundry list of vehicles, among them nothing but SUV’s, performance sports cars, and full-sized sedans. On the other hand, Honda ran an ad in which they touted themselves as the most fuel-efficient auto maker in the country.
Given the beleaguered state of the US auto industry, and high fuel prices, how can pushing gas-guzzlers seem like a good market strategy? Oh, right- they own Congress.
As for the tax credit, I can't understand why Congress doesn't just make the capped-credits transferrable. The US auto-makers could sell them to Toyota. Toyota would get to keep realizing a benefit (albeit, diminished) for additional tax-credits, we'd extend the incentive for doing something positive for the environment, and US automakers would enjoy a hand-out from the government.
I am going to make a post on GM's ads in a little while. I can understand, from a marketing perspective, what GM was doing. Still, I was also disappointed.
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