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As you may have heard, the Big Three automakers (GM, Ford and Chrysler) are in serious financial trouble. Now, in a bit of full disclosure, my Dad and two of my uncles each worked 30+ years at GM, and all have pensions, so I have a vested interest in keeping GM at least afloat.
At any rate, the Big Three are looking for a financial bailout. The Wall Street Journal has an editorial out on the subject. Although they are rather more pessimistic about GM's Volt plug-in hybrid then I am, the Journal makes a good point, namely, part of the reason the Big Three are in trouble is government regulations regarding fuel efficiency.
Making fuel-efficient cars isn't really that hard. From Making Light, I read of yet another fully-operational plug-in hybrid, this one from Dean Kamen of Segway fame.
The problem is, most Americans don't want to buy a fuel-efficient vehicle. They want a big, powerful vehicle, which is why they buy SUVs. Now that gas prices have fallen to around $2 / gallon ($2.35 in DuPage county on Sunday when I filled up), public interest in hybrids will fade.
Moreover, at that low gas price, alternative fuels become less profitable. Let's not kid ourselves here - to make alternative fuels actually happen, they need to be profitable. Nobody is going to spend billions on a 10 or 20 year investment if fuel prices fluctuate 40% in a single year. That means either a government mandate to use them or a fuel tax, which is the same thing in a different color.
So, I find myself in favor of both a bailout for the Big Three and a tax to support alternative fuels.
At any rate, the Big Three are looking for a financial bailout. The Wall Street Journal has an editorial out on the subject. Although they are rather more pessimistic about GM's Volt plug-in hybrid then I am, the Journal makes a good point, namely, part of the reason the Big Three are in trouble is government regulations regarding fuel efficiency.
Making fuel-efficient cars isn't really that hard. From Making Light, I read of yet another fully-operational plug-in hybrid, this one from Dean Kamen of Segway fame.
The problem is, most Americans don't want to buy a fuel-efficient vehicle. They want a big, powerful vehicle, which is why they buy SUVs. Now that gas prices have fallen to around $2 / gallon ($2.35 in DuPage county on Sunday when I filled up), public interest in hybrids will fade.
Moreover, at that low gas price, alternative fuels become less profitable. Let's not kid ourselves here - to make alternative fuels actually happen, they need to be profitable. Nobody is going to spend billions on a 10 or 20 year investment if fuel prices fluctuate 40% in a single year. That means either a government mandate to use them or a fuel tax, which is the same thing in a different color.
So, I find myself in favor of both a bailout for the Big Three and a tax to support alternative fuels.
