CAFE
reality: Most interested in hybrid vehicles, but few
buyers (Cont.)
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Nonetheless, Richardson stuck to his guns and insisted
that 50 mpg SUVs that consumers love were achievable by
2020 and that he would subsidize the industry to make it
happen.
When a twenty-something mpg Tahoe hybrid costs $50,000,
how much would a 50 mpg Tahoe hybrid cost?
Moreover, since the President doesn't legislate, would
Congress buy such a plan? Would the taxpayers electing
members of Congress approve of higher taxes for such a
purpose, especially if gas is $4.00 or $5.00 per gallon,
the housing market has collapsed and America is in a
recession? If Americans can't afford gas, how are they
going to afford more expensive fuel saving automobiles?
Today, the battery technology to achieve a 50 mpg SUV is
probably close to $20,000 or more. If economies of scale
could drop that cost to $10,000, a massive amount of
subsidies would still be required. Even if costs were
brought down to $5,000, the costs are still massive when
tens of millions of cars per year are in question. Where
will the money come from?
Politicians that are promising everything without
acknowledging the massive costs involved are simply
talking the talk - just as most Americans. Ultimately,
even after 2 Persian Gulf Wars, 9/11, Katrina and $3.00
gas, few Americans are making serious changes when it
comes to fuel economy. Cup holders are still more
important than fuel economy.
That's reality. America's consciousness, when it comes to
fuel economy, is in the gutter. There is no passion for
change. No vision of a better future. Unless politicians
can get everyday Americans to buy into - literally - fuel
economy and change, change just isn't going to happen.
Ultimately, many politicians are engaging in a
self-defeating debate and conversation. Too many
politicians seem to insinuate that automakers are hiding
more fuel efficient technologies which is pushing many
consumers to believe that simply forcing - regulating -
automakers to achieve 50 mpg will make solve all problems
without increasing any costs to consumers.
TINSTAFL! There is no such thing as a free lunch.
Technologically, achieving 50 mpg is probably achievable
by 2020, but it will take an insightful, visionary,
coordinated approach between industry, government and
consumer. Is America really to believe that such a
partnership is possible in today's divisive, partisan
political climate?
More important, achieving 50 mpg would take a MASSIVE
investment - a massive investment that will pay for itself
in the long run if done correctly, but it might hurt a
little in the short term.
Unfortunately, just as with the Toyota Camry hybrid, most
Americans are primarily concerned with today's costs, not
investments that will pay off in the future.
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