Thursday, April 23, 2009

Shouldn't we hybridize every car?

Isn't this the perfect time to try to hybridize every car? Hybrid cars not only reduce CO2 and help reduce foreign oil dependency, they also help develop green jobs in the US battery industry.Not really a good EV candidate?

By 2050, decades from now, there will still be many internal combustion-powered vehicles on the road. In fact, in 2050 the road might be equally filled with ICE, fuel cell and plug-in vehicles.

If true, that would mean 2/3's of all autos are going to need some kind of battery, as the smartest fuel cell vehicles will be battery-using fuel cell hybrid vehicles.

Unfortunately, the US lithium battery industry is just short of nonexistent, especially when it comes to cell manufacturing.

So, why not hybridize everything starting in the next five years to guarantee the need for US battery manufacturing immediately, or at least as soon as possible?

And this isn't just about somtimes expensive full hybrids cars or plug-in hybrids, GM is proving that cost-effective lithium-based BAS hybrid systems can improve overall vehicle fuel efficiency by 20 percent. Such a system will pay for itself. Thus, if the government is going to help GM retool its business, shouldn't incorporating, minimally, this kind of hybrid technology into every vehicle line be required?

In fact, make each hybrid capable of being a BAS hybrid, a dual mode hybrid, or maybe even a dual mode plug-in hybrid.

Certainly, GM could use other tricks to make every vehicle efficient enough for new CAFE regulations, but a focus on batteries is critical if the US auto industry is truly going to compete in the next few decades, as batteries will become significantly important supplies.

But we're so far behind, we can't move fast enough. We have to be aggressive.

Since the US auto industry is, essentially, largely dependent upon the government, isn't this the perfect time to step into the next century of automaking via government assistance?

Moreover, why not unlimited tax credits for every hybrid made with a US manufactured battery? And/or, for any hybrid assembled in the US?

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Tuesday, March 31, 2009

Volt Shock: How do we fight foreign oil dependency in the short term?

The Chevy Volt can't save GM and big battery plug-in vehicles can't save American from foreign oil dependency any time soon. Shouldn't we be doing more to fight foreign oil dependency.How many more oil wars before we're free?

According to Barack Obama's auto task force, GM's Chevy Volt will be too expensive to help GM's viability any time soon. Obviously, if GM is struggling to survive, it can't afford to make too many Volts if it can't make any money off of them.

So, how is the US going to fight foreign oil dependency in the short term?

Recently, Congress enacted tax credits for plug-in hybrids that strongly favor large battery vehicles, such as the Chevy Volt, versus smaller battery plug-in hybrids like a plug-in Prius. Yet, according to the task force, these large battery plug-in vehicles are going to be too expensive to help either GM or America any time soon. Likewise, some studies question whether large battery vehicles are even wise at all.

The point is, doesn't Congress have to do a better job of incentivizing the fight against foreign oil dependency? How many more decades of foreign oil dependency can America (and the world) survive?

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Friday, March 20, 2009

Taxing: A $50,000 Tesla Model S or a $33,000 Chevy Volt?

If you can afford a $50,000 vehicles, how impacting is a $7500 tax credit?Or neither?

In 2011 environmentalists and foreign-energy hawks will have a number of interesting choices available when purchasing their next car. Two of the top picks will, undoubtedly, be the Tesla Model S and the Chevy Volt.

After tax incentives, the Tesla Model S will cost about $50,000,the Chevy Volt about $33,000, although it seems the Model S will be more of a luxury sedan than the Volt.

The Model S will offer an electric range of about 225 miles between charges. The Volt should offer at least 300 miles, but the Volt also offers the ability to use gasoline to generate electricity.

Personally, I'd love to have both vehicles, but neither make sense for my driving needs. However, if I had to pick one, it would easily be the Volt and for one reason only, cost.

Which brings me to a touchy subject. Tax incentives for wealthy people. Or, more precisely, tax incentives for cars costing far above $30,000 - a number most Americans cannot afford. Shouldn't the government focus it's tax incentives on cars with the most mass-appeal? Cars that provide the quickest adoption for the greatest numbers possible?

If you can afford a $50,000 auto, how badly do you really need a $7500 tax credit?

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Tuesday, March 10, 2009

Do today's hybrids really need new tax credits?

Are tax credits for hybrid cars really need to push hybrid vehicles into the mainstream?Hybrid sales versus hybrid tax credits

I was just checking out some data provided by Hybridcarreview that seeks to find out the impact of tax credits for hybrid cars and the sales of hybrids.

Ultimately, this summer, Toyota Prius sales proved that tax credits are largely irrelevant when energy prices are higher. For other hybrids, the data isn't as convincing.

Even today, Prius sales are relatively strong, particularly considering that the third gen. Prius is almost set to launch.

Inevitably, over time - I believe - higher energy costs will naturally hybridize automobiles as America's fleet slowly but surely moves towards electrification. Keyword, as far as the next decade is concerned, is slowly.

However, if America were to set a goal of 1 million hybrids per year by 2012, hybrid tax credits for conventional hybrids would be needed.

So are new tax credits for conventional hybrids needed? It depends on how fast you want to embrace efficiency.

(Check out Hybridcarreview.com)

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Thursday, February 05, 2009

Tax credits for guzzlers - Does it ever end?

Tax credits for gas guzzlers. This is the big change? Why not tax credits only for hybrid cars, or only for cars that achieve at least 30 mpg in the city?One last dance on the Congressional gravy train?

I've had a hard time not commenting on the plan, now part of the stimulus package before the Senate, to give consumers a tax credit for buying new cars. So, I'm just going to get it out of my chest.

Are you kidding me? Foreign-oil sucking, 911-causing, gas GUZZLERS?

This is change?

I say, F cars right now, unless we're talking a serious change, such as a plan to end foreign oil dependency by 2020. If not, just give Detroit enough money to stay above water for now. That's it. We'll sort it out later when there is time for a better plan.

Besides, if it doesn't kill you, it only makes you stronger, right?

I mean, really, if you wanna spend a trillion dollars today, there should only be one focal point: the real estate and the mortgage mess.

Isn't that the root of our problems in the first place? So, why focus on anything else right now?

Don't have any ideas?

Here's one. Since the banks screwed us on this thing in the first place, let's just force them to lower rates on ALL mortgages significantly, or something like that.

They owe us, right? Direct and simple. Transparent.

But tax credits for gas guzzlers? Excuse me, I have to go to the bathroom right now.

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Wednesday, January 28, 2009

Senate seeks to double eligibility for plug-in tax credits

More tax credits for plug-in hybrid vehicles.Does this stimulate today's economy?

There is a proposal in the Senate to increase the amount of vehicles that can qualify for the plug-in tax credit from 250,000 to 500,000 vehicles. For vehicles that have a battery pack of at least 4 kWh's in size, a tax credit of $2500 to $7500 will be available for the first 250,000 vehicles. Under the new proposal, the first 500,000 vehicles would be eligible.

While I support the proposal, does this really stimulate the economy today, which is what I thought was the focus of this stimulus bill?

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Monday, March 03, 2008

Tax credits for PHEVs: Waste of time?

What about today's hybrid vehicles?

The US House of Representatives has passed the Renewable Energy and Energy Conservation Tax Act of 2008, H.R. 5351 that, if enacted, would provide tax credits for plug-in hybrid vehicles. The base credit would be worth $4000 for PHEVs with at least a 5 kWh battery pack. An additional $2000 in credits could be claimed by those with larger battery packs. Each kWh beyond 5 is worth an extra $200, up to an extra $2000.

The only problem, where are the plug-in hybrid vehicles?

Such a credit might push a few more hybrid owners towards converting their hybrids into plug-in hybrids, but wouldn't the best path towards PHEVs and significantly more fuel efficient vehicles be getting as many hybrid cars on the road today? Wouldn't tax credits for the Toyota Prius, for example, make more automakers address Prius success today, not 2 years from today?

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Tuesday, November 27, 2007

CAFE? Whatever! Give me hybrid tax credits today!

Today's hybrid cars are the quickest way to plug-in hybrids

A number of the candidates running to be the next President have done a lot of talking about foreign oil dependency, but have offered few actual details other than CAFE, funding for battery research and ethanol.

Sadly, a number of the candidates also have jobs in Congress and they have not done anything about extending Toyota's and Honda's hybrid vehicle tax credits. Sure, putting many more hybrid cars on the road won't significantly reduce foreign oil dependency immediately, but it will significantly increase battery research and competition to create cost effective, fuel efficient technologies, such as plug-in hybrid vehicles.

CAFE? Blah, blah, blah. Give me something now! Why do politicians always talk about what they can do tomorrow, without doing ANYTHING today? As I stated in my earlier post on the hydrogen highway, politicians have no real vision for the future of America - it's all soundbites.

Walking the walk just isn't a requisite requirement for today's politicians.

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Monday, November 12, 2007

Hybrid trucks: More proof its time to fire Congress?

FedEx would go hybrid crazy - with government help

So, tax credits for Toyota's hybrid vehicles are completely expired. Yet, even though a Rand study has shown that hybrids provide far more social benefits than E85, government subsidies for corn-based ethanol continue to increase. Who cares that hybrid tax credits could help put millions of fuel efficient, socially-beneficial hybrids on the road while encouraging technological competition and making the technology cheaper for even millions more buyers?

Sadly, the government isn't just blowing it on small hybrids, but on large hybrid trucks and buses.

"If we can get hybrid trucks at the same premium that hybrid cars are at ... the manufacturers will be able to sell as many as they can make," John Formisano, vice president for global vehicles of package delivery company FedEx, told Reuters.

Congress still provides large, uncapped tax credits for small businesses to buy the worst gas-guzzlers on the market, but it can't help large businesses save millions, even billions, of gallons of fuel? What's wrong, not enough pork?

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Tuesday, July 17, 2007

Hybrid interest dropped in 2007?

J.D. Power says interest in hybrids dropped in 2007

The DetroitNews is reporting that interest in hybrid cars has dropped 7 percent in 2007. "In the 2006 study, we found consumers often overestimated the fuel-efficiency of hybrid electric vehicles, and the decrease in consideration of hybrids in 2007 may be a result of their more realistic understanding of the actual fuel economy," said Mike Marshall, director of automotive emerging technologies at J.D. Power.

Ironically, as interest in hybrids supposedly dropped, and as Toyota hybrid tax credits have been reduced to almost nothing, the Toyota Prius has become one of the top 10 best selling cars in America as 2007 Prius sales have pummeled 2006 sales. Likewise, the Camry hybrid has seen stellar first year sales.

Somehow, I think this study is missing something.

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Sunday, July 15, 2007

Large SUV tax break almost over?

So, you need a Hummer to sell real estate?

There is another move in Congress to end the $25,000 tax deduction available to small business owners to buy the largest SUVs - those weighing over six thousand pounds.

It's amazing this deduction has survived this long with all the rhetoric coming out of Washington regarding foreign oil dependency and global warming. Hopefully, the tax deduction can be retooled to reward small business owners whom buy hybrid cars and other clean vehicle technologies.

Then again, we are talking about Congress and politicians here.

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Thursday, July 12, 2007

New hybrid tax credits only for plug-in hybrids?

No new tax credits for regular hybrids?

I have to hand it to Congress. Only Congress can create a lot of buzz while actually doing nothing, such as is with the proposed tax credits for plug-in hybrid vehicles (more).

Now, I'm as big a fan as any regarding plug-in hybrid vehicles, but America can't get enough buyers into conventional hybrid cars. So, how can tax credits for plug-in conversions accomplish anything?

The biggest seller of hybrids, Toyota, is facing the end of any tax incentives for buyers of Toyota hybrids, including the best selling Toyota Prius. With better tax incentives, imagine how many more Prii, Camry hybrids and Highlander hybrids would be selling.

Moreover, if there are not enough hybrids on the road already, how is converting a small percentage of them into plug-ins going to accomplish anything other than buzz among politicians, celebrity-advocates and a handful of rich treehuggers?

I say extend Toyota's tax credits first. If the Prius becomes the best selling car in America because of tax credits, so be it. Millions and millions of 45 mpg hybrids on the road is a good start and it is probably the fastest way to more hybrid competition amongst automakers, as well as the fastest path to mass-produced plug-in hybrids.

I mean, c'mon. How many Americans can really afford to buy a Prius and spend another $10,000 to convert it into a plug-in hybrid that voids the battery warranty? Move forward with the plug-in tax incentive, but not without extending Toyota's tax credits or making larger tax incentives for all hybrid buyers.

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Monday, July 09, 2007

Mazda Tribute hybrid tax credits announced

Coming later this year?

The Mazda Tribute hybrid will qualify for a $3000.00 clean vehicle tax credit, according to the IRS. However, if you purchase the 4-wheel drive version of the Tribute hybrid, then that vehicle will only qualify for a $2,200 tax credit.

(Source: Car&Driver)

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Friday, July 06, 2007

Tax incentives: Biofuels versus hybrid vehicles

Extended tax credits for Toyota hybrids?

When it comes to the energy package that will eventually make its way out of Congress, expect significant incentives for biofuels, but little for hybrid vehicles, according to some analysts.

"Later this year, when lawmakers finish dealing a new hand in the energy legislation game, the biofuels industry will clearly come up with the aces," states Jim Ostroff in Kiplingers recently.

Why no new incentives for hybrid cars? Well, mostly because Toyota is the one with the most to gain. GM and Chrysler, for example, still have not sold one full hybrid. Thus, since Congress capped the incentives by manufacturer, new incentives would really only help Toyota, since every other automaker is still sitting on a large supply of credits.

Good old government inspired competition? I understand the desire to try to get all automakers involved with such technology, however, shouldn't the government also be trying to get as many as-fuel-efficient-as-possible vehicles on the road?

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Saturday, June 09, 2007

Prius top selling Toyota vehicle at some dealers

A hidden gem at NAIAS?

Despite a severely reduced hybrid tax credit, the Toyota Prius is now the top-selling vehicle at some Toyota dealers, according to my sources at more than one Toyota dealership in Southern California.

Often Southern California is the barometer of U.S. auto trends. If this is true regarding the Prius and hybrid cars - the Camry hybrid is also a hot seller in SoCal - imagine the sales potential of the third generation Prius.

What would all the hybrid vehicle critics say if the Prius became the best selling vehicle in America?

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Friday, June 01, 2007

Toyota hybrids post record sales in May

The Camry hybrid was also hot

Ouch! That's all I can say regarding the sales of the Toyota Prius hybrid car this May.

With a tax credit that has been cut in half, then cut in half again, one might have expected a bit of a drop in the sales of Toyota's hybrid vehicles, or at least some stagnation. Instead, Toyota posted its BEST EVER month of Prius sales, selling some 24,009 Prius vehicles - almost equaling the total sales of Toyota's entire Lexus division.

----> Finish: Toyota hybrids post record sales in May

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Tuesday, May 29, 2007

Want an Altima hybrid, but its not available where you live?

Just gotta have one?

I've received a few e-mails from some hybrid car buyers that decided to purchase a Nissan Altima hybrid, rather than a Toyota Prius, simply for the Altima's full tax credit compared to the almost expired, significantly reduced, tax credit on Toyota's hybrid vehicles.

I can see the sense in that.

Yet, Nissan is only selling the hybrid version of the Altima in just 8 states; California, Connecticut, Maine, Massachusetts, New York, New Jersey, Rhode Island, and Vermont. Not all potential Altima hybrid buyers live in these states. So, many are driving hundreds of miles to buy one.

So, where will these 'out-of-area' Altima hybrids be serviced?

Nissan is warning Altima hybrid buyers outside of the 8 states where Nissan is selling the hybrid vehicle, that servicing outside of these 8 states will be very limited and might include several days of delay.

Hybrid tax credit, servicing hassles, tax credit????

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Monday, May 07, 2007

Hybrid tax credits - Give me something to believe in Barack

Time to give Toyota some credit!

Congress sucks. Numerous Democrats and Republicans have been speaking about foreign oil dependency and global warming for at least a couple of years now, yet they've done little, despite the fact that a majority agree action is necessary.

O.K. Forget the past.

Barack Obama has now claimed that if he becomes President, he's going to push and to help U.S. automakers to develop hybrid cars. In addition, he also wants to change the tax credit for hybrid vehicles so that there is no cap by manufacturer - something Obama has also proposed as a legislator.

So, what are we waiting for? Foreign oil dependency and global warming are important, but not important enough .......(more).

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Wednesday, May 02, 2007

Congress lobbied to lift hybrid tax credit cap

A123 Systems and Tesla both lobby Congress for help

A horde of auto-orientated lobbyists asked Congress for help yesterday with a number of clean vehicle and clean fuel technologies. Included in that lobbying was a request to remove the cap on hybrid tax credits, which was set at 60,000 hybrid vehicles per manufacturer. Consequently, the leading selling of hybrid cars, Toyota, is already down to a reduced credit that will soon expire completely. Most automakers, on the other hand, have yet to sell one full hybrid.

A123 Systems also lobbied Congress for help in its quest to develop plug-in hybrid vehicles, as did Tesla Motors regarding fully electric vehicles. (more)

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Wednesday, April 25, 2007

Hybrids and Biofuels: Forget the Politicians?

Does it really matter which Party is in control?

If you ask me, competition works better than politicians. I'm not saying competition works perfectly, but it works better than a bunch of rich, special interest-funded partisan politicians.

Consequently, I've been very bothered that Congress has not extended Toyota's hybrid tax credits - something both Republicans and Democrats have ignored. Yet, in the last couple of years, both parties have talked considerably about energy dependence, especially foreign oil dependence and/or global warming. Yet, very little has been accomplished to alleviate these problems.

Obviously, the task is not simple. Still, it seems to me that the quickest way to make automakers deal with fuel efficiency is simple competition. Force them to act or risk losing customers.

Thus, the more success Toyota has selling hybrid vehicles, the more pressure there is.....Finish Hybrids and Biofuels: Forget the Politicians.

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Thursday, March 29, 2007

Democrats suck: Why no Toyota hybrid tax credits? (Does America suck?)

Is leaving Iraq a solution or a distraction?

While Democrats keep beating the Leave Iraq drum, they continue to do little to resolve the problem that eventually pushed America into Iraq in the first place: oil. While there isn't anything that can be done to immediately end foreign oil dependency, there are small actions that create strong messages that could result in real action. Extending Toyota's tax credits is one such action.

Besides, Toyota deserves the extension. Hybrid cars, plug-in hybrid vehicles - these vehicles wouldn't even be on the world's radar if not for Toyota. Even today, the Big 3 - led by GM - can't get off the ethanol crazy train. Fortunately, even the mainstream media are finally starting to address the truth about flex-fuel vehicles and corn-based ethanol - its a scam (See BW).

--> Finish Democrats suck: Why no Toyota hybrid tax credits

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Wednesday, March 14, 2007

Toyota hybrid tax credits and Democrats

Why haven't Dems taken any action?

Many Democrats in Congress have made global warming one of their most important political issues - at least in terms of political speech. Yet, political action is still lacking.

Most of these hard-talking Democrats and some Republicans have demanded tough increases in fuel economy that could severely threaten the viability of U.S. automakers. Fine. This is an important issue and tough action will be required. Nonetheless, tough talk and little action accomplishes nothing.

Finish Toyota hybrid tax credits and Democrats

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Tuesday, March 13, 2007

Toyota tax credits set for another reduction

Are you in the market to buy a hybrid?

Have you been out shopping for hybrid cars recently? If so, then you know there are some pretty good deals being offered on hybrids. For Toyota hybrids, the deal might never be sweeter. The current tax credits offered on Toyota hybrids are set to again be cut in half in April. So, if you were thinking about a new Prius, Camry hybrid or Highlander hybrid, you might want to act now.

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Friday, February 23, 2007

Gas prices primed to skyrocket?

Another hurricane could blow hybrid vehicle sales much higher

Oil prices are back up over $60.00 per barrel, and those prices could easily continue to trend higher, rather than lower. Yet, the spring and summer driving season hasn't even begun to heat up. Unfortunately, the tension in the Middle East, on the other hand, only continues to boil as the U.S. and Iran engage in Persian Gulf war exercises. In addition, there is an election coming up in Nigeria that could dramatically escalate violence there if rebels feel cheated. Still, aside from all the geopolitics threatening the price of oil, one good storm in the Gulf of Mexico could make $70 oil and $3.00 gas, seem like the good ole days.

So, if you've been checking out hybrid cars, but you've felt a little unsure of your investment, don't worry. Oil prices appear primed to keep your investment quite secure. Now, if we could just get Congress to extend tax credits for Toyota hybrids.

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Friday, February 16, 2007

Why tomorrow's hybrid buyers should support extending today's hybrid tax credits

Today's hybrid success drives tomorrow's hybrid technology

"I'm not going to buy a new vehicle until I can buy a plug-in hybrid vehicle," is a statement I often hear.

Of course, I understand this sentiment. Yet, there are still many potential plug-in hybrid consumers whom need a car today. For these buyers, it is essential that they buy one of today's hybrid cars. Inevitably, the more success today's hybrids achieve, the faster tomorrow's hybrids - and plug-in hybrid vehicles - will become reality.

Hybrid tax credits are key to this process.

Consequently, even for those unwilling to buy any vehicle until plug-in hybrids are available, it is essential that they support today's hybrid vehicle tax credits. In addition, it is especially important that they also support extending and uncapping the current tax credit, or lack thereof, for Toyota's hybrid vehicles.

--> Read the rest of Why tomorrow's hybrid buyers should support extending Toyota's hybrid tax credits

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Tuesday, February 13, 2007

Hybrid tax credits: Why Congress still sucks

Automakers, especially America's Big 3, claim increasing CAFE is just too expensive. Apparently, ending foreign oil dependency just doesn't matter.

Nonetheless, in an effort to give automakers a little nudge, Congress created tax credits for hybrid cars and other clean technologies. Quite quickly, Toyota used all of their full tax credits. GM and Chrysler, on the other hand, have yet to sell one full hybrid.

Is that the sign of successful legislation?

Even with reduced tax credits, Toyota will probably sell more than 150,000 Prius hybrid cars this year. In all, Toyota might sell a quarter million hybrids in the U.S. in just 2007. Yet, how many more hybrid cars could Toyota sell if consumers still qualified for the full tax credit?

Extending tax credits for Toyota's hybrid cars isn't going to force the bankruptcy of American automakers. Extending tax credits for Toyota's hybrid cars will, however, force American automakers to take foreign-oil-dependency-reducing technologies much more seriously.

Besides, won't such competition be required to make a serious increase in CAFE possible? Or, is all this CAFE political buzz just another Congressional game?

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Monday, February 12, 2007

Consumers are key to gasoline dependence

Automakers claim gas-guzzling consumers are key

Can America achieve gasoline dependence? Not for many decades according to automakers. Quite simply it would probably take a decade just to replace America's new fleet with fuel efficient hybrid cars, clean diesels, etc. Right now, however, not enough hybrids are available, nor is there enough consumer interest in purchasing hybrids or clean diesels according to automakers.

Of course, I bet this would significantly change if there were more hybrids available in more segments, such as hybrid trucks. Also, pricing is hugely important, which underscores the vital necessity of extending and uncapping tax credits for hybrid cars.

Ultimately, if America is going to take foreign oil dependency and global warming seriously, it's going to be up to consumers and politicians - not automakers - to make it happen.

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Friday, February 02, 2007

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.

--> Read the rest of Congress, hybrids and clean vehicle tax credits

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Thursday, February 01, 2007

Hybrid Vehicles Dead? Toyota Prius sales soar in January

Are hybrid vehicles losing their appeal?

Despite lower gas prices and a federal tax credit that was reduced by 50 percent, the Toyota Prius had its best January on record, selling 8,299 units. The Camry hybrid posted sales of 2,801 units, the Highlander hybrid reported 1,810 sales, while the Lexus RX400h reported 1,245 units sold.

So, if Toyota sold more than 14,000 hybrid cars in January with only a reduced tax credit, how many more would Toyota have sold if it still qualified for the full tax credit? Considering the seriousness of foreign oil dependency, pollution and global warming, it is simply silly that Toyota is being punished for being too successful doing the right thing.

--> More on Hybrid vehicles dead? Prius sales soar in January

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Friday, January 26, 2007

What? You don't qualify for your hybrid tax credit?

So, you bought a Toyota Prius because you wanted to help the environment? Of course the car pool lane access and the $3150.00 in tax credits helped in your decision as well, right?

Well, hold on. According to Hybrid tax credit bait and switch, you might not qualify for your tax credit on the Prius, or any of the other hybrid cars that qualify for the hybrid tax credit.

"Few Californian families with income between $150,000 and $500,000 will qualify for a penny of the credit. And under this bizarre legislation, at lower income levels, the smaller your family, the bigger the credit allowed. Likewise, single taxpayers will mostly be OK."

Obviously, those making more than $150,000 per year can handle this news better than those making only $50,000. While I understand the writer's consternation, there were a lot of crazy things about the hybrid tax credit, such as why are U.S. automakers sitting on more than 150,000 tax credits as Toyota's tax credits expire? Isn't the point to get as many hybrids on the road as possible?

Congress!?!?

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Wednesday, January 24, 2007

The 'Admiral' calls 20 percent U.S. gas reduction impossible

Eric Bolling, known as the Admiral on CNBC's Fast Money, was on Morning Call this morning talking about oil prices. Consequently, he was asked about the President's State of the Union Speech and whether a 20 percent reduction in U.S. gasoline production was possible. He adamantly exclaimed that it was not possible, that ethanol would ultimately have little effect on gasoline consumption, and that the U.S. would be lucky if it could maintain its current gasoline consumption - rather than increase it as the U.S. seems to do year after year. Scary.

While Bolling might be correct, and based on his success he's hard to argue against, I think the U.S. must try. More important, I think it is desperately vital that the U.S. and consumers realize that alternative fuels, other than possibly hydrogen, are not going to be the answer. Fuel efficient technology, namely hybrid vehicles that can evolve into plug-in hybrid vehicles are absolutely critical.

I think it's even more evidence we need a gas-tax to clean energy tax credit policy.

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Tuesday, January 23, 2007

Isn't it time to give Toyota the Big 3's hybrid tax credits?

Give the Prius some credit

In advance of the President's State of the Union speech, Big 3 automakers are using the Auto Show circuit to show Congress and the President that they can be fuel efficient. Ford announced 20 flex fuel hybrids and a $2,000,000 hydrogen plug-in hybrid. DaimlerChrysler showed off the most fuel efficient, clean diesel heavy duty Ram pickup truck, and GM debuted the Chevy Volt concept at NAIAS.

Wow, I guess Detroit gets it, huh?

Well, why then are the Big 3 sitting on more than 150,000 tax credits available for hybrid vehicles as Toyota's hybrid tax credits expire because they sold too many hybrids? Why do we punish Toyota's clean and fuel efficient success and protect Detroit's complacency? Is this really how you drive innovation? How about some good old American competition?

As I blogged earlier today, it's time to put tax incentives into the hands of the people rather than the corporations. Give the people the money to afford hybrid vehicles and other clean technologies and to reward whoever makes the hybrids consumers want.

While I desperately want the Big 3 to succeed, it's time for real world vehicles, not fancy concepts and $2 million one-offs.

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State of the Union and Energy Independence: Power to the People!

Power to the people, not the corporations!

Energy independence is supposed to be an important part of the President's State of the Union speech tonight. So, when it comes to energy independence, where should the government place its tax incentive focus? Should it be on alternative fuels such as ethanol, bio-diesel, clean diesel and hydrogen? Should it be on advanced technologies such as hybrid vehicles, lithium-ion batteries, and fuel cells?

I say forget fuel. Forget ethanol. Ethanol already receives an incredulous amount of tax subsidies and is in danger of turning into a pork-barrel legislator's dream.

I say focus on hybrid vehicles, electric vehicles and lithium-ion battery technology. Let's invest in the kinds of technologies that can practically wipe out the need for any liquid fuel in just the next decade.

Of course not everyone will agree on the approach. Consequently, I say try to give the power to the people, and let's make the people accountable for their choices.

Yesterday, I suggested a gas tax. Why not make gas more expensive while using the gas tax revenue to reward consumers whom buy more fuel efficient technologies? Also, make that tax 85% less for E85, for example - let consumers reap the benefit of buying a flex-fuel vehicle if it works for them. Why should automakers receive CAFE credits - a tax saving loophole - for selling E85 functionality that is never used by the majority of consumers? In addition, empower the flex-fuel user to save even far more with a flex-fuel hybrid vehicle.

I say give the power to the people! It's fair, it's competitive, it's responsible.

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Monday, January 22, 2007

A gas tax to fund hybrid vehicle tax incentives?

Let gas-guzzlers fund hybrid tax credits?

It is not very common to hear support for a gas tax coming out of Detroit, but that is exactly what Daniel Howes is supporting in his DetroitNews column today.

"We Americans can have the collective attention span of 4-year-olds -- we want what we want when we want it and complain loudly when we don't get it," Howes begins his commentary as he ridicules consumers and "politicians-cum-nannies" whom have tried to blame everyone but gas-guzzling consumers for high gasoline prices.

Yet, once prices hit $3.00, consumer behaviour changed rather quickly, which is exactly why, Howes argues, that a gas tax - not the vilification of oil companies via taxes, etc. - would be the "quickest, if not the wisest, way to cut fuel consumption and change behavior".

Unfortunately, that's probably political suicide, even if it is the right thing. Inevitably and ultimately politicians are far more focused on maintaining power than on doing the right thing - but that's a whole other sad story.

Automakers and oil companies deserve blame, but consumers deserve at least as much blame. I think a gas tax is a great idea - as long as every cent of the tax incentive is given back to consumers whom buy hybrid cars and other clean energy technologies.

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Friday, January 19, 2007

Nissan Altima hybrid tax credit approved

The federal tax credit for the Nissan Altima hybrid has been determined by the IRS. The full credit for qualified consumers will be $2350. However, in order to qualify for the full tax credit, consumers will have to purchase the 2007 Nissan Altima hybrid by the end of March. Those whom buy the Altima hybrid between April and the end September will only receive half that credit, or $1175. During the last quarter of the year, the credit will be reduced to $587.50 (more).

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Wednesday, January 17, 2007

Is the Federal hybrid tax credit protectionist, anti-capitalistic, anti-American legislation?

Why not help Toyota produce as many hybrid cars as possible?

GM's future is now the Volt and even though GM doesn't like to admit it, the Volt is a hybrid vehicle. Consequently, the near future is ALL ABOUT hybrid vehicles - at least if you care about the environment or foreign oil dependency.

Every other automaker in the world will either have to develop hybrid cars, or something far better, or the world can to wait 20 to 30 years for the possibility of fuel cells and hydrogen.

Why? Why isn't America putting as many hybrid vehicles on the road as possible?

(Read Is the Federal hybrid tax credit protectionist, anti-capitalistic, anti-American)

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Tuesday, January 16, 2007

Toyota wants extended tax credits, other automakers fearfully say no

Toyota wants tax credits for hybrid vehicles extended, citing a drop in the sales of its hybrid cars corresponding to the reduction in the credit. Other automakers, aren't as certain. Honda, for example, called hybrids only a bridge to another technology and would prefer tax credits for hydrogen fuel cell vehicles. (more)

Hydrogen fuel cell vehicles? The same hydrogen vehicles that BMW just claimed are 30 years away from mass-production reality? What happened to Honda, the environmental leader? Yes, Honda developed its hybrids as a bridge to another technology, but their bridge is lost in the fog right now. Toyota, on the other hand, is developing its hybrid cars as an integral part of the path to fuel cell vehicles.

One battery break-through and hybrids could become twice as efficient as today. Moreover, they could be converted into plug-in hybrids for even greater fuel efficiency. In fact, with just one good battery innovation, electric vehicles - never powered by a fuel cell or hydrogen - might be the future.

Yes, extending the tax credit will further empower Toyota, but letting the credit slide will lull many automakers back into the 'maintaining the status quo' mentality that created the problems of foreign oil dependency and global warming in the first place.

Let's drive competition. Let's extend tax credits for hybrid vehicles.

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Wednesday, January 10, 2007

More momentum gaining in Congress for increasing CAFE

"There is a dangerous amount of momentum" in Congress behind tougher corporate average fuel economy regulations, General Motors Corp. Vice Chairman Bob Lutz said Tuesday at the North American International Auto Show. (more)

Of course, what costs will Congress be willing to accept to achieve an increase in CAFE? Will Congress risk tens of thousands of more auto jobs in Detroit to increase CAFE? That seems like political suicide.

Regardless, I say before Congress increases CAFE, extend tax credits for hybrid vehicles. Also, make buying a hybrid part of the small business tax credit. Give American companies some R&D money to develop lithium-ion technologies - the kind of technologies that have the ability to make any proposed increase in CAFE child's play.

--> More on increasing CAFE

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Toyota sees huge hybrid growth in 2007

Toyota is hoping to leave all other automakers in the rear view mirror when it comes to hybrid vehicles. According to Just-Auto, Toyota "plans to sell 250,000 to 300,000 hybrid cars in the US in 2007, up from 192,000 in 2006."

With gas prices dropping, are such sales figures a reality, especially when Toyota's reduced hybrid tax credits are considered?

I hope Toyota is correct, and I hope that Congress extends the tax credit for Toyota hybrids. Toyota's success has made all automakers take another look at hybrid technology and serious competition is brewing. Congress should help keep it brewing by ensuring that hybrid technology remains accessible to consumers - regardless of automaker and regardless of dipping gas prices.

This Toyota FT-HS hybrid concept, pictured above, demonstrates what hybrid investment can accomplish, and this is just the beginning.

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Tuesday, January 09, 2007

All hybrids save money in long run?

"Across the board, we found that all 22 hybrid vehicles have a better total cost of ownership over five years or 70,000 miles than the vehicles they directly compete against," said James Bell, Intellichoice.com's publisher.

"Hybrids are proving themselves to be an excellent alternative for car buyers," Bell said. "Even when factoring in the additional upfront costs for their purchase, the long-term savings hybrids generate makes them a sensible and attractive purchase."

While tax incentives probably make this fact true, mass production of these vehicles would bring the costs down to a point that tax incentives probably wouldn't be needed. As a result as well, massive amounts of money would be pumped into research and development for making hybrid cars better. For example, hybrid battery technology has the potential, by itself, to completely revolutionize the automotive industry.

More important, as this study indicates, we can bring costs down, fund R&D, and save money while doing it! So, make your next vehicle purchase a hybrid vehicle. If your favorite automaker doesn't make a hybrid, let them know you want a hybrid.

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Wednesday, January 03, 2007

Woolsey Plugs Hybrid Plug-Ins Again

R. James Woolsey, a director of the CIA during the Clinton Administration, has been a huge advocate for plug-in hybrid vehicles, and he has a featured article on the Wall Street Journal, Gentleman, Start your Plug-Ins. "Subsidizing expensive substitutes for petroleum, ignoring the massive infrastructure costs needed to fuel family cars with hydrogen, searching for a single elegant solution--none of this has worked, nor will it. Instead we should encourage a portfolio of inexpensive fuels, including electricity, that requires very little infrastructure change and let its components work together: A 50 mpg hybrid, once it becomes a plug-in, will likely get solidly over 100 mpg of gasoline (call it "mpgg"); if it is also a flexible fuel vehicle using 85% ethanol, E-85, its mpgg rises to around 500, " states Woolsey.

So keep buying those hybrid cars, it invests in the future of hybrid technology. Also, make sure your representative in Congress understands that tax incentives for today's hybrid vehicles and tomorrow's plug-in hybrids is an investment in the future.

Join our campaign for increased tax credits for hybrid cars.

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Wednesday, December 13, 2006

NO. Hybrid vehicles are not losing their appeal

Today, Roland Jones of MSNBC asked the question, Are hybrid vehicles losing their appeal?

No, Roland, they are not. Also, Roland, how can you utilize the Honda Accord hybrid to discuss hybrid vehicle economics? First, the Accord hybrid isn't a hot-selling hybrid, it's possibly the worst selling hybrid. Second, it's a performance hybrid, and was not produced purely to achieve fuel efficiency.

Sure, the sales of hybrid cars are down. Automobile sales overall are down and expected to be down into 2007. Yes, hybrids are down more, but that fact has nothing to deal with appeal, Roland. Obviously, the fact that Toyota's hybrid tax credits have been cut in half is a key issue since the Prius is by far the best selling hybrid, as is the drop in gasoline prices.

But there is also a bigger, non-hybrid issue. Why are automobile sales down and expected to be down next year? Are automobiles losing their appeal? Or, do consumers have a little less financial power? If economic times are tight, it isn't surprising fewer consumers can justify paying more for a hybrid when the tax credit has been cut in half and when gas prices are down.

Nonetheless, consumers are very interested in hybrid cars, especially the hybrids of the future. Consumers are not stupid, and they know the best of hybrid vehicles is yet to come. Currently, the public appears to be particularly fascinated with the idea of plug-in hybrid vehicles. So, since consumers have less cash and gas prices are low, many are waiting for next generation hybrid technology.

And no, Roland, diesel is not an alternative. Diesel might compete with hybrids today in some driving conditions, but reliance upon diesel instead of gasoline will NEVER end foreign oil dependency. Next generation hybrid technology, however, certainly has the capability to end foreign oil dependency.

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Friday, December 08, 2006

Tax incentives for oil drillers more important than clean vehicle tax incentives

Even in the final days of the current Republican led Congress, tax incentives for oil drillers are still of extreme importance. Even in these days of astronomical oil company profits, more tax incentives for oil companies are still far more important than tax incentives for hybrid cars and other clean vehicle technologies.

If filthy-profit rich oil companies can't afford to do more Gulf drilling without tax incentives, then too bad. If that means higher gas prices in the short term, then I guess it will just make alternative fuels and hybrid cars that much more cost-effective. Besides, the more we invest in alternative fuels and clean vehicle technologies, the less we'll have to be worried about the price of oil in the long term.

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Thursday, December 07, 2006

Capitalism, Competition, Free Markets & Hybrid Tax Credits

Today, the Pentagon is one of the biggest proponents of energy independence. Why? Quite frankly, the cost of protecting America's oil habit is very expensive, and it is possibly the greatest threat to American National Security. Most citizens are even starting to understand the problems foreign oil dependency has and is creating. As a result, Congress created a new tax credit to help Americans purchase clean, foreign-oil-dependency fighting automobiles, such as hybrid cars.

The plan worked so well, that Toyota met its quota in less than a year, long before GM has even sold ONE full hybrid vehicle. Consequently, sales of Toyota hybrids have slowed in recent months. Sure, high gas prices have dulled people's interest in fuel economy, but it seems obvious that reduced tax credits are also an important part of the skid.

In America, where the virtues of capitalism, competition and free markets are loudly promoted in corporations and Congress, shouldn't such ideals also be used to fight for energy independence? If Toyota could sell another 60,000 hybrid vehicles right now, utilizing GM's unused credits before GM even offers a full hybrid, shouldn't they have that right?

Isn't protecting National Security more important than protecting Detroit's failures? Is America afraid to end oil dependency too quickly? Is the status quo really more important than National Security? Why are we punishing Toyota for doing too much to help America fight foreign oil dependency?

Why are there even quotas on the tax credits? There are no quotas on the tax incentives given to small business owners that buy the worst gas-guzzlers, yet there is NO incentive for small business owners to buy fuel efficient vehicles.

I guess that only makes sense to members of Congress.

While GM's Rick Wagoner can complain about unfair trade advantages and currency manipulation in places like Japan, Toyota has every right to complain about protectionist legislation coming out of the U.S. Congress.

If GM were forced to compete for those credits in a free market, you can bet they would have gotten more hybrids on the road much faster. Instead, Congress has essentially given them a safety net NOT to act faster.

Great job Congress! I mean its only our National Security at stake!

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Tuesday, December 05, 2006

Hybrid tax credits not on Congress' radar?

Toyota spokeswoman Martha Voss told the San Francisco Chronicle that hybrid tax credits do not seem to be on the radar screen of Congress, at least not in the near term. "There was talk of some people on the House and Senate side wanting to introduce bills" that would extend the hybrid tax credit for at least another year, Voss stated. "Since Congress changed hands, they're taking care of other business right now. They have a lot to do before they come back next year. We don't have any signals that there is something urgently pending," Voss says.

I wonder whether if it was GM or Ford that was running out of tax credits for their hybrid cars if Congress would take the matter more seriously? For some reason I'm sure Congress doesn't mind slowing down Toyota's foreign-oil dependency fighting success.

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Monday, December 04, 2006

Is there an issue more important than energy independence, right now?

Oil dependence aids terrorists, funds dictators and gives millions around the world a reason to point their finger at the imperialist, capitalist and evil American empire. Gas guzzling greed has produced complacency and ignorance that has stunted automotive development by focusing on speed and power rather than than on efficiency and clean technology. This greedy, ego-driven focus - produced by cheap oil dependence - has severely weakened the U.S. auto industry and now threatens the U.S. economy.

And for what? So, that yours is bigger than mine?

American automakers, their unions and representatives in Washington complain about imports and outsourcing, yet turn a blind eye to our extremely dangerous oil imports. How can one import be so good, yet another so bad?

One political party protects the oil industry, the other political party protects the gas-guzzler builders. Yet, our environment and National Security continue to deteriorate as politicians blame each other for a problem each party has contributed in creating.

Now politicians on both sides of the aisle are preparing to make energy independence the core issue for 2008 - at least in terms of political soundbites.

Why are waiting until 2008? I don't care about the next election, right now. I don't care about lame ducks, right now. I care about today, right now.

Right now, Congress could renew tax credits for Toyota hybrid cars. Right now, we could give small business owners the same tax incentives to buy clean vehicle technologies that we currently give small business owners to buy the worst gas-guzzlers.

When America went to the moon, it inspired the development of so many technologies and industries. Right now, striving for energy independence could do the same, while increasing National Security and fighting global warming.

Why isn't America doing more? Shouldn't we be doing everything we can, right now?

--> More on hybrid tax credits, etc.

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Tuesday, November 28, 2006

Americans want 40 mpg cars, but how much will they pay?

A new survey by the Opinion Research Corporation demonstrates that, "more than three out of four Americans want the government to impose a 40-mile-per-gallon fuel-efficiency standard on American vehicles." (more)

Would those same Americans still want such a fuel efficiency standard if it was going to cost them an extra $5000 to purchase their vehicle? What if it was just $3000? What if it meant the collapse of the U.S. auto industry?

While surveys show that Americans are interested in fuel economy, far fewer Americans actually demonstrate this attitude in the show room. Sure, Americans might be moving out of some of the largest gas-guzzlers into slightly smaller gas-guzzlers, but the vehicles most Americans continue to purchase are nowhere near achieving 40mpg. Getting them to achieve 40 mpg isn't going to be cheap, at least not in the short term.

Consequently, I argued yesterday that tax incentives are key to achieving higher fuel economy. Ultimately, 40 mpg CAFE probably isn't going to happen, and if it does, there will be loopholes. Moreover, if Americans fully embraced advanced technologies, funded by consumer-based tax incentives, 40 mpg becomes a cake walk.

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Monday, November 27, 2006

CAFE or Tax incentives: Best path to increased fuel economy?

Whether you want to fight foreign oil dependency or to help reduce global warming, increasing the fuel economy of automobiles is one of the best paths to achieving both goals.

So, what is the best path towards increasing fuel economy?

Many environmentalists, for example, believe that increasing CAFE to 40 mpg in the next decade is the best path. Yet, critics point out that CAFE has achieved very little since its inception. As a result America continues to increase fuel consumption year after year, critics often point out.

Additionally, the majority of Congress - both Democrats and Republicans - believe that increasing CAFE to 40 mpg would destroy the entire American automobile industry.

While I am an advocate for increasing fuel economy and even increasing CAFE, I do not believe that simply raising CAFE to 40 mpg is a very good solution. Technology must be a key component.

Inevitably, America needs a vibrant auto industry to help keep the economy strong. Surely, inept leadership at the Big 3 deserves much blame for their current weakness and our oil problems, as does every President and Congress in the last 20 years. Nonetheless, however, the past is the past, and it is time to move forward.

I say we can do better than 40 mpg in the next 10 years, far better. Hybrid vehicle technology is proving that we can surpass 40 mpg in the next decade if we use new technologies and start thinking outside of the box, and we should.

By giving citizens the financial power to offset the cost of hybrid technology with tax incentives, there will be plenty of reasons for automakers to start building more and more such hybrid vehicles. Additionally, tax incentives and some auto industry subsidies are a move that will pay for themselves in the long run via less military protection of oil supplies. Furthermore, would you not rather help subsidize American auto-workers to build super fuel efficient vehicles based upon important developing technologies, rather than to pay for their unemployment benefits?

Ultimately, foreign oil dependency and global warming do not have to be a crisis. Instead, let foreign oil dependency and global warming be an opportunity for American automakers to fully embrace advanced technology as the path to high-tech American jobs, a strong American economy, and a clean and secure country.

Ending foreign oil dependency as quickly as possible is one of the most important things the U.S. can accomplish in the next couple of decades. Achieving this goal will take far more than CAFE, it will take open minded consumers and a lot of tax incentives.

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Thursday, November 16, 2006

Are Democrats AGAINST the hybrid vehicle revolution?

In a bid to support geothermal power, Harry Reid today accused the Bush Administration of being "so oil-friendly that we have been able to get their attention on virtually nothing that is not oil related," Reid said. "They’re not that interested in renewables."

Hmmm??? While Democrats are looking to bail out the fuel inefficient Big 3, Bush did have the courage to tell Detroit to produce 'relevant' vehicles. Bush has also, on numerous occasions promoted hybrid vehicles and lithium ion battery development. In fact, Bush even went so far as to say that hybrid vehicles were the best way to change consumer behavior.

Is that the definition of "lack of interest"? Maybe, for a politician.

Moreover, Bush asked Congress to extend tax credits for hybrid cars, something which Congress chose not to do. Yet, now that Democrats have taken over Congress I've heard very little about hybrid vehicles and even less about tax credits for hybrid cars.

Instead, the whole Democratic platform now seems fixated on E85.

Even worse Democratic ranking members of Congress have already voiced their disinterest in raising fuel economy standards in the U.S. because they don't want to sacrifice jobs - Democrat supporting UAW jobs - for increased fuel efficiency. Quite a different tune the Democrats are singing now compared to just a couple of years ago when Democrats blamed Republicans for not raising fuel economy standards, even though key Democrats joined Republicans on that vote.

Can we stop playing politics, for at least one year?

I really wish Reid and some other Democrats would quit the partisanship. Didn't America vote for change? Well, let's start changing, please? Let's take the high road, Democrats. Lead by example.

Obviously, the Democratic Party wants to do as much as possible to tarnish the President in an effort to claim the White House. However, if they don't focus on doing something these next two years just to try to win the White House, they might just catapult Republicans back into power.

For years Democrats have done a lot of talking about what should be done, what Republicans didn't do, and they were right, the Republican Party failed the people and America.

Still, now its time for Democrats to stop talking and to start acting. When it comes to foreign oil dependency and national security, even global warming, nothing matters more than fuel efficiency.

Ultimately, the benefits provided by E85 are not going to amount to much if our energy consumption keeps going up. Democrats and the rest of Congress must focus on fuel efficiency. If they are not going to mandate tough standards, then help Detroit develop fuel efficient technologies, particularly hybrids and plug-in hybrids, and give consumers tax incentives to buy these global warming and foreign oil dependency fighters.

Even oil man Bush understood that issue.

Let's hope Democrats and the rest of Congress can finally start helping America instead of just blaming each other for what is wrong with America.

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