Comments on: When Automakers Went Before Congress

By: Zan

Zan — Tue, 20 Mar 2007 18:28:17 +0000

If U.S. consumers paid for fuel directly, instead of through $Billions in industry subsidies, there might be a natural (read free-market) incentive to adjust their usage habits. But then pig oil wouldn’t like that and all lawmakers know this. :roll

By: Van

Van — Tue, 20 Mar 2007 13:07:02 +0000

The vast improvement from 1976 to 1986 was the result of a technological improvement, fuel injection replaced carburation.

From 1986 to 2006, no improvement in fleet average occured. But in the next few years, hybrid technology will bring about another significant increase in fuel economy. But this will be overwhelmed by the increase in the number of vehicles on the road globally.
CO2 emmission from transportation will continue to increase unless we shift off of fossil fuel to nuclear and renewable energy sources.

By: joe yan

joe yan — Sun, 18 Mar 2007 03:40:36 +0000

Americans shouldn’t feel cool to drive a big SUV or light truck to work. This is not a cool life style.

By: Mike

Mike — Sun, 18 Mar 2007 01:00:21 +0000

Something's wrong :roll

Didn't president Bush cater to the auto industry not too long ago by signing a cap on fuel economy increases, as well as making it more difficult to raise them in the future?

I suspect this is a PR stunt by the auto industry.

By: rgseidl

rgseidl — Sat, 17 Mar 2007 17:10:53 +0000

The Congressional committee that asked auto makers to testify is headed up by Rep. Dingell (D-Mich) who has long received substantial campaign contributions from them. The present hearings are therefore something of an exercise in damage limitation. The industry does not want EPA to be in charge of CO2, because that agency is hard to influence.

Laterally shifting the burden of taxation from income to fuel would indeed be the most sensible strategy. Unfortunately, for all the posturing, members of the US Congress simply don't have the leadership qualities it takes to sell that to the electorate.

Hopefully one of the Presidential hopefuls will do so. The key is to make the transition gradual, predictable and irreversible to minimize accelerated depreciation on legacy assets. Figure 10-12 years before prices at US pumps could match those in Europe today.