Why vouchers for clunkers, but only credits for hybrids?

An increase in hybrid pickup truck sales?

Alright. I'm not a big fan of the cash for clunker program that has now passed Congress. Anyway, I hope that it leads some guzzler drivers to upgrade into hybrid vehicles, although I doubt many will take such action.

What I find more interesting, however, is how easy Congress made it for guzzler drivers to upgrade into a new guzzler, yet how consumer unfriendly hybrid tax credits have been.

Trade in your old SUV or truck for one that achieves just 2 mpg better fuel economy and the government hands out a $3500 voucher? Wow. But buy a hybrid and your possible tax credit is dependent upon our crazy tax code?

Hopefully, Congress will reconsider the current tax credit for plug-in hybrids and EVs and make it as consumer friendly as it's doing with the guzzler program.

Time to revisit plug-in tax credit legislation?

Is its battery big enough?

There has been an AP story all over the Internet covering the difficulties of reaching President Obama's 1 million plug-ins by 2015 goal. Cheap gas, a struggling economy, bankrupt automakers, and excessively expensive technology, etc. make the goal impossible without massive help from the government.

Thus far the government has offered tens of billions in loans and aid to help automakers retool, in addition to plug-in tax credits for consumers worth up to $7500. While these tax credits are not as heavily skewed towards large battery plug-ins as originally proposed, they are still skewed towards vehicles that some studies have questioned in terms of efficiency.

Now, I don't want to argue against large battery plug-ins, but I do wonder if this legislation is as effective and efficient as it could be. Even worse, I wonder if this legislation is semi-counterproductive.

For instance, with plug-in profitability possibly a decade away, are plug-ins more about CAFE balancing than an aggressive attack on oil dependence? Also, will these vehicles be profitable after tax credits expire?

Is the size of the battery really the key this early in the game, or should there be more focus on putting lithium into as many cars as possible as quickly as possible?

Ford + EnerDel = Failure?

Where does your battery come from?

In the future, the US might no longer suffer from foreign oil dependence, but there is every reason to believe that we'll suffer from foreign battery dependence. Can the US auto industry survive and compete if it has to import cost-effective lithium batteries from Asia and Europe - areas that are years ahead of America in both battery R&D and manufacturing capabilities?

Today, there is only one company that has the ability to mass-produce enough lithium batteries for either tens of thousands of EVs or hundreds of thousands of hybrid cars right here in America. Unfortunately, EnerDel can't sign a contract with any of the Big 3 American automakers.

Why? According to Argonne Labs, Enerdel has quality lithium chemistry.

So, why didn't Ford, for example, show some real innovation and produce the Ford Fusion hybrid with lithium batteries from EnerDel, rather than NiMH batteries? Ford has no future with NiMH, so why not take a calculated risk with American-manufactured lithium batteries, especially if you're only going to produce 25,000 of these hybrids per year?

Late next year, Uncle Sam will be doling out $7500 tax credits to Americans that buy plug-in vehicles that might have been made in America, but the most important technology, the battery, was not. Isn't it time to also dole out some credits to push American automakers, such as Ford, into American manufactured lithium batteries for today's hybrids? Isn't there no better time to act than right now?

Why doesn't the Prius qualify for a tax credit?

Too much pressure on US automakers?

Why doesn't the Toyota Prius qualify for a tax credit? Why not the Honda Insight?

If it were the Ford Prius that was today's king of hybrid cars, would the government have extended tax credits on such vehicles long ago?

Today, automakers use EVs as an excuse not to build hybrids much in the same way they once used fuel cells. Certainly, EVs are more realistic than fuel cells, but they still haven't been proven reliable and, more importantly, cost-effective, etc. And, even worse, a new study questions the entire cost-effectiveness of the Chevy Volt.

Besides, it will take decades to convert America's fleet into any type of more fuel efficient vehicles. Hybrids are a great solution today that could be converted into plug-in hybrids tomorrow - by American companies, such as A123Systems. Shouldn't we be doing everything we can today about energy efficiency today?

Is a Prius plant in America really so irrelevant?

Tax credits for plug-in conversions - Another congressional failure?

More proof Congress is inept?

In my opinion, Congress was very motivated by the Chevy Volt when it came up with its tax credit plan for battery-powered vehicles. GM is an important American company, so this protectionism isn't surprising.

Yet, already, plug-in hybrids and other electric vehicles have caused some auto analysts to question the importance of automakers as we head into the future. If the future of the automobile is electrification, then the most important technology for that future is batteries. Those whom control this technology might just be the drivers of the future's auto industry.

Today, there are hundreds of hybrid vehicles that have been converted into plug-in hybrids via A123Systems - also an American company. Why not reward a company like A123 for these conversions? With hundreds of thousands of hybrids - plug-in conversion ready - on US roads now, A123 would be in a position to become a major player in the electric future TODAY if the government provided tax incentives for conversions.

But why do today what you can always do tomorrow, right?

Natural gas hybrid tax credit

Fight foreign oil dependency and invest in electrification

Not long ago I suggested new tax credits for non-plug-in hybrid vehicles, but with higher fuel economy standards. Since it's going to take decades before everyone is driving a plug-in, if ever, America needs other fuel efficient choices in the interim, especially cheaper solutions.

But, instead of raising the fuel economy requirements for a new hybrid tax credit, how about tax credits for natural gas hybrids, including plug-in hybrids?

Elevate the battle against foreign oil dependency, and invest in the electrification of the automobile. Isn't it time for tax credits for natural gas hybrid vehicles?

New tax credits for Non-plug-in hybrids needed?

Tax credits helped drive the Prius

There is no doubt that tax credits for hybrid cars, especially the Toyota Prius, helped sell these vehicles. But, are new tax credits needed to keep moving these vehicles?

Probably not, considering that most hybrid dealers have been adding massive dealer markups to these vehicles. Of course, if the economy keeps tanking all car sales will suffer.

Still, what about a tax credit for non-plug-in hybrids that rewards significantly higher fuel economy - say for hybrids that achieve at least 60 or 70 mpg combined fuel economy? Or, at least a tax credit for plug-in conversions?

If Congress truly wants to end foreign oil dependency, isn't a more aggressive, comprehensive incentive program required?

Tax credits for plug-in's a done deal

Will a Prius plug-in qualify?

Tax credits for plug-ins are now a done deal, as the President has promised to pass the bailout bill that Congress has now approved. Plug-ins with at least a four-kilowatt battery pack will qualify for a credit ranging from $4,168 to $7,500 depending on the number of kWh's in the battery pack.

It is know that the Chevy Volt will qualify for the entire $7,500.

Originally, Toyota was against this bill, but the company seemed to change its tune when the kWh battery requirement was reduced. So, it appears plug-in hybrids, such as the Toyota Prius, will also qualify for this credit.

Plug-in Ratings: Both Congress and the EPA confused

What's the value of plugging in?

When tax credits for plug-ins become available, neither electric range nor fuel economy will matter, only battery capacity - a move that appears to strongly favor GM's Chevy Volt versus the Toyota Prius.

However, when it comes to the EPA and CAFE, it's fuel economy that will matter. And that is the standard that Congress will judge automaker fleet fuel economy.

So why the double standard? Shouldn't there be just one way to judge plug-ins?

Dan Foley, of the Automotive X-Prize has been suggesting MPGe as a better rating "MPGe is a measure that expresses fuel economy in terms of the energy content of a gallon of gasoline, asking how much energy was delivered to the vehicle, and how far did it go."

$7,500 plug-in hybrid tax credit passes Senate - Too favorable to Volt?

Only about battery capacity, not actual EV range, nor real world fuel economy?

The Senate has passed a new tax bill that will provide tax credits for plug-in hybrid vehicles ranging from $2,500 - $7,500, depending on the vehicle's battery capacity. To be eligible for the credit, such plug-in vehicles must store at least 6 kWh's of electricity.

So, battery capacity, not actual EV range nor real world fuel economy, is how Congress judges plug-in quality? Does that really make sense?

Finish: $7,500 plug-in hybrid tax credit passes Senate - Too favorable to Volt?

House slices into plug-in hybrid tax credit

$3000 - $5000

The House of Representatives has passed a tax credit for plug-in hybrid vehicles as part of H.R 6899. The credit offers $3000 for 5 kWh plug-ins. For every kWh above 5, the credit offers an additional $200 up to a maximum of $5000. Like the same tax credit system that gave Toyota a $3,000 credit for the Prius, the total full credits would be 60,000, then the credit would be cut in half and then quartered.

Still, no reason to get too excited about the details yet. The Senate has yet to put its finger prints on this bill.

Plug-in Tax Credits: Toyota in shock?

To offer less than 6 kWh of electricity?

Yesterday, Robert Wimmer, the National Manager of Energy and Environmental Research for Toyota Motor North America, lobbied the Senate Energy and National Resources committee not to pass new legislation that will give tax breaks to the Chevrolet Volt, or other plug-in hybrids with batteries that hold at least six kilowatt-hours of electricity.

"Toyota believes this approach is counterproductive," said Wimmer in a statement before the committee. "It will discourage manufacturers from developing and consumers from purchasing 'blended' plug-ins that are affordable to the greatest number of consumers."

So, the plug-in Prius won't offer 6 kWh worth of electricity? Is it even worth it to make a plug-in hybrid if it doesn't offer at least 6 kWh? Has GM's Volt actually rattled Toyota?

Do hybrid tax credits still make sense?

Tax credits have helped Altima hybrid sales

The Toyota Prius has not qualified for a tax credit in some time, yet demand far outweighs supply. The demand supply ratio is so out of whack that dealers are adding as much as $5,000 to the MSRP, in addition to thousands worth of dealer add-ons - and they are still selling.

Many other hybrid cars, such as the Honda Civic hybrid and the Toyota Camry hybrid, are selling as fast as they can be produced - also with dealer markups. While a few hundred thousand new hybrids will be added to the hybrid supply starting some time in 2009, if gas prices remain high, these hybrids will probably not just sell easily, but many will sell with dealer markups.

So, are hybrid tax credits still necessary? For what, to help justify dealer markups?

Hybridcarblog has been an advocate of hybrid tax credits for years, but isn't new thinking required? For example, perhaps the focus should be on plug-in conversions, EVs, or vehicles that achieve at least 80 mpg. Of course, it's hard arguing against hybrid tax credits when, unbelievably, gas guzzlers STILL qualify for small business tax incentives.

Nonetheless, should Congress create new hybrid tax incentives and, if so, what should be the focus?

Fuel economy: Double jeopardy for tax payers?

Just let Congress manage our economy?

Yesterday, I blogged on how the city of Flint is providing millions in tax breaks to GM to help fund the Chevy Volt, and GM is also seeking millions from the state as well. Likewise, GM is also requesting part of $50 billion in low interest, government backed loans to help in the conversion to vehicles with better fuel economy, such as smaller vehicles and hybrid cars. And, when GM finally starts selling the Volt, it will probably need large tax incentives for consumers in order to make these vehicles affordable.

And, if Ford and Chrysler ever develop real plans to address fuel economy, they'll need just as much help.

Yet, the pain doesn't stop there. Automakers claim that CAFE will increase the price of all vehicles significantly. Thus, not only are tax payers committing billions in loans and tax breaks to Detroit, they're also going to have to pay more for the products their tax dollars are helping to fund.

Without doubt, US automakers provide great jobs for many Americans, but how did things get so screwed up? More important, can the US auto industry really be saved, or are we just delaying the inevitable?

Prop10 - Has California gone hybrid crazy?

A $5 billion bond for clean energy

A few times per hour I'm seeing Yes on 10 commercials on CNBC. What is Yes on 10?

"Proposition 10 is a five billion dollar bond measure which will reduce California’s dependence on foreign oil; clean our air of asthma and cancer causing chemicals; and create thousands of new green technology jobs in California."

These objectives will be achieved with consumer rebates on hybrid cars, EVs and other vehicles capable of achieving 45 mpg. Additionally, it will help retire old diesel vehicles, add more renewables to the electric grid and fund research.

Hybridcarblog wants to support this measure, but with a $22 billion budget shortfall, we wonder if such a proposition good for California right now, or should bond measures be limited until this massive deficit is under better control?

Fuel economy, cars and politics

Large gas-guzzlers still qualify for tax incentives

Democrats are the party for greens, right? So, why are solar tax credits set to expire? Why are tax credits for hybrid cars expiring while tax incentives for huge gas guzzlers are not?

We shouldn't be surprised according to an interesting chart The Fast Report sent to Hybridcarblog. The chart shows a strong correlation between gas prices and the ratio of small to large vehicle sales. Overall, higher gas prices lead to less guzzler sales, more small car sales and greater US fuel economy. Great for greens, right?

And yet Democrats want to tap into oil reserves, grill oil executives and whatever else to try to lower gas prices, an event that will only lead to more gas-guzzler sales and decreased fuel economy. Contradictions?

Republicans couldn't run Congress and now Democrats can't either. Talk, talk, talk. Spend, spend, spend. Man, I gotta run for office. What a job!

A $20 billion bailout for automakers?

America's automotive "Apollo Project"?

A bipartisan group of US senators is proposing a $20 billion package to help automakers achieve "the goal of transitioning 85 percent of America's new motor vehicles to non-petroleum-based fuels within 20 years."

The bulk of the money goes to automakers to both retool and to develop new battery-orientated technologies, including hybrid cars and electric vehicles. Additionally, in the short term, the plan would also significantly increase tax credits for hybrids and hybrid conversions. Of course, the plan also offers a few billion more for biofuels.

While there is a dire need for such an "Apollo Project", from where will the money come? Who is going to ensure that the tax money isn't wasted on pork and boondoggles with few conclusive results - Congress? Perhaps I'm just grumpy from driving more than 2000 miles in the last 36 hours, but I can't help but ask, do automakers deserve such a bailout?

Plug-in hybrids and fuel cells: Two peas in the distraction pod?

How many years until everyone drives a plug-in?

It takes about 12 years to recycle through today's fleet of automobiles. Thus, if everyone started buying $40,000 plug-in hybrid vehicles in 2010, it would be about 2022 before almost everyone in America was driving a plug-in.

Of course, if automakers sell even 100,000 plug-in hybrids, collectively, in 2010, or even 2011, I'll be shocked.

On the other hand, by 2010, Toyota alone could be selling well over a million hybrid vehicles, hybrid vehicles that scale plug-in hybrid costs downward by standardizing electric motors and other electric drive supplies, in addition to helping fund battery technology.

Yet, most hybrid tax credits are now expired, and the only ones being talked about are for plug-in hybrids. However, if Honda comes out with a 50+ mpg hybrid for less than 20,000 next year, and a $3,000 tax credit were added, an under $17,000 hybrid would be affordable for almost everyone, unlike plug-in hybrids. And then there's the competition.

Have plug-in hybrids become the new fuel cell vehicle - tons of potential, but a little too futuristic?

Ford can't make plug-ins without gov. help?

A plug-in hybrid Escape at NAIAS

According to Reuters, Ford will need "substantial government investment" to make plug-in hybrid vehicles a reality, including both research money and tax credits.

"While the basic architecture is similar to our current hybrid electric vehicles, there are engineering challenges," Mark Fields, Ford's North American President told a hybrid electric vehicle conference sponsored by the Brookings Institute think tank and Google.org.

"Japan, China, Korea, and India are significantly funding the research development and deployment of plug-in hybrid vehicle technologies. This is a race we must win," Fields said.

Volt success hinged to massive tax subsidies?

Much ado about tax credits?

According to Winding Road GM is engaged in a lobbying effort to have Congress create a tax credit for plug-in hybrid vehicles like the Chevy Volt.

"GM has been actively lobbying Congress in advance of the Volt’s arrival, for tax credits that would benefit, “extended-range electric vehicles” like the upcoming Chevy. Such a credit (or credits) could trim as much as $7,000 off the car’s sticker, making the Volt a far better potential value for the predicted 10,000 to 30,000 customers in year-one of the car, and helping to lay the groundwork for making it a high-volume seller in years to come."

I guess those German rumors of a $30,000 Volt were just the result of wishful thinking?

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?

Escape hybrid is the new tax credit king

Worth a $3000.00 tax credit

Lately, when the topic of hybrid tax credits arises, I usually spend my time advocating for more tax credits for hybrid cars. It just seems obvious that tax credits aren't just for influencing consumers, but they should also be for creating competition amongst automakers. While the IRS created some interest, it didn't force ANY competition. Of course, then again, there's the AMT, etc., etc.

Anyway, back to today. Both the 2008 Ford Escape hybrid and the 2008 Mercury Mariner hybrid qualify for a $3000.00 federal tax credit - a $400 increase over last year - making them hybrid tax credit kings. The Nissan Altima hybrid is second at $2350, followed by the Honda Civic hybrid at $2100.

If one of these tax credits is about to drive your next hybrid purchase, make sure you speak with your tax advisor about issues like AMT.

Chinese fuel shortages: The need for hybrid tax credits?

Give the Prius some credits

For some in China today, there isn't any gas or any diesel. Maybe tomorrow, maybe not. If any fuel does come, it will quickly be guzzled away. China, inevitably, must find more foreign oil - a LOT more.

Hence, even if America becomes a little more fuel efficient in the next few years, increased consumption from China will easily replace our demand.

The need to go hybrid

Yesterday, I posted studies demonstrating America's increasing demand for fuel efficiency, and the desire for more fuel efficient automobiles. Yet, other studies indicate that while American consumers definitely want more efficient vehicles, they don't want to pay any extra costs for such autos - even if those costs are more than recovered during the life of the vehicle.

Thus, isn't it time for some temporary government intervention? Finish: Chinese Fuel Shortages: The need for hybrid tax credits

Cupholders: Proof America needs a gas tax?

Cup placement more important than foreign oil dependency

Americans might be worried about foreign oil dependency, but they are still more worried about where they will put their morning cup of coffee on their drive to work according to the latest research. Ultimately, Americans are concerned about fuel economy, but not enough to pay anything extra.

Won't it be impossible for America to end foreign oil dependency without some sort of gas tax? Wouldn't a gas tax be a great way to fund tax credits for hybrid cars, including plug-ins and other clean vehicles?

Hybrid tax credits: A necessary evil?

Would tax credits speed plug-ins?

Tax credits for buying hybrid cars have long expired for Toyota, the hybrid sales leader. Likewise, a tax credit for plug-in hybrids was dropped from the House's energy bill, essentially, at the request of oil companies.

Yet, a huge gas-guzzler can still qualify for a tax deduction? What the hell? Finish......

Congress: Tax incentives for a 10 mpg Hummer, but not for a 50 mpg Prius?

Congress talks about hybrids, gives money to Hummers

Congressional contradictions? Hypocrites?

Fight foreign oil dependency and make gas cheaper? Demand more hybrid cars like the Toyota Prius and give small business tax incentives to buy 10 mpg gas-guzzlers, but not hybrids? Am I missing something? Read more......

Still no new hybrid vehicle tax credits: Let's take action

Give them credit

Congress has passed CAFE. By 2020 foreign oil dependency will end, significant reductions in global warming will be achieved, and all Americans will drive in any vehicle and achieve at least 35 mpg, while saving 100s of dollars in gasoline costs per year.

Now will reality please stand up?

It's time to put the power in the hands of the people. Tax credits for hybrid cars, clean diesel and bio-diesel conversion kits give the people the power to make smarter, clean and greener consumer purchases, while rewarding the companies making cleaner and greener energy and products. Power to the people, not the corporations! Join the Revolution! Read more.

WAKE UP Congress: Study shows hybrids better than E85

Time to move ethanol subsidies to hybrids and clean diesels?

Rising oil prices coupled with concerns about global climate change are driving debate about which fuels and engines should be used to power the 17 million new cars and trucks sold each year. Advanced diesel and hybrid technologies show very well in this study, in terms of benefits to the individual and society overall. E85 simply doesn’t provide the same benefits.

—John Graham, senior author and dean of the Pardee RAND Graduate School (more)

Just more confirmation of the crappy job that Congress is doing?

Study-after-study continues to question corn-based ethanol, yet Congress provides billions of dollars to subsidize corn-based ethanol. On the other, buyers of Toyota's hybrid vehicles - vehicles that can greatly benefit society - no longer qualify for tax credits?

When is the corny Congress going to start doing the right thing, instead of the earmarked, pork-barreled, lobbyist-influenced thing?

Oil gone crazy - Will America ever change?

$100.00 before $70.00?

Crude oil hit $84.00 per barrel today because a storm building in the Gulf of Mexico shut down a number of platforms, and if the storm actually develops into a rig-destroying hurricane, $100.00 oil could be just around the corner.

Many, such as Boone Pickens, have suggested that $100.00 oil is coming, but most have predicted that such a level would not be achieved until next year's summer driving season at the earliest. The sudden resurgence of hurricane season, however, has changed everything.

One wonders, how long can America's oil craze continue?

Iraq, 9/11, oil-funded terrorism, oil-funded takeovers of iconic American businesses and financial institutions. What will it take for America to declare war on foreign oil dependency? Will we drive the oil crazy train to economic collapse?

Isn't it time for Congress to reinstate Toyota's clean vehicle tax credits for hybrid cars to reward consumers for taking responsibility and to pressure automakers?

Isn't it time to consider a gas tax? Sure it will hurt, but the longer America waits to take serious action, the more it's going to hurt in the future, and it just might be fatal.

Energy Bill: Billions and Billions for nuclear power, but not for hybrids?

No help for efficient-minded consumers?

"A one-sentence provision buried in the Senate’s recently passed energy bill, inserted without debate at the urging of the nuclear power industry, could make builders of new nuclear plants eligible for tens of billions of dollars in government loan guarantees."(NYTimes)

This is not the forum for a nuclear energy debate, but it seems ridiculous that the government's biggest handouts always go to big business - big businesses that use billions in tax incentives to achieve billions in profits. Yet, the benefits provided by these businesses seem to cost American consumers more and more.

What about giving smart consumers the power to reward companies that make smart decisions?

Over and over I have been told how important the clean vehicle tax credit has been to the buyers of hybrid cars? Yet, Toyota's hybrid tax credits are essentially expired. Is that how you reward companies for doing the right thing? More important, isn't it essential to help citizens and consumers to make better choices, such as buying more fuel efficient vehicles?

If it was GM or Ford, rather than Toyota, that was the hybrid sales leader, would hybrid tax credits still have been capped by manufacturer? Would they have been capped at all?

Whether it is Democrats or Republicans, it seems there is one phrase that best describes America's politicians - pork-barrel pigs.