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Monday, April 07, 2008

50 mpg - Much ado about tax incentives?

America loves two-seaters, not!

50 mpg by 2020. According to automakers, such a task is almost technologically impossible. Nonsense! On the contrary, such a task is quite feasible. Such a task does, however, require a shift in consumer psychology, or financial help.

The Newsweek article, Miles to Go, points out that 50 mpg simply requires American consumers to give up either "cost, drive quality or safety", or, presumably, some combination thereof. The technology, however, is available in the form of lighter materials, smaller sizes and hybrid technology.

Still, it seems obvious that American consumers don't like to give up anything. Sure, they might down size a little, but it seems very unlikely that a Dodge Durango buyer is going to start driving something the size of a Mini Cooper. Hence, are not consumer tax credits for fuel efficient technologies the key, especially considering the government's unhealthy role in maintaining foreign oil dependence?

Labels: fuel economy, hybrid tax credits, Hybrid Vehicles

posted by Dahcredyns at 8:45 AM

2 Comments:

Blogger Nozferatu said...

American consumers don't like to give up anything.

Let me rephrase that....Americans don't want to give up anything which, in particular, isn't theirs to begin with.

Amazing isn't it.

10:05 AM  
Blogger Dahcredyns said...

Thanks for the positive spin.

Still, I think something like tax credits for consumers can have an impact. Sure, I'd rather see a gas tax, but that's political suicide.

Giving consumers a bunch of tax incentives - so they can pick the winners and losers - is a great way to really push competition in the auto industry right now with so many hybrids emerging in the next few years. So, let's push automakers and consumers to pick up the pace even more.

I think most Americans are tiring of the status quo, they just don't believe change is possible, so they ignore the subject entirely.

A fuel efficiency incentive, such as a hybrid tax credit, could be an effective tool for change - a momentum builder.

1:20 PM  

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