10/27/2004

New Cars With New Presidency

What will happen to the auto industry after the elections? Cars and gasoline are becoming an extremely popular topic lately. With oil prices up and cars sucking the gas, the two candidates for president are giving their thoughts on the topic. Also, the CO2 from the cars have been getting many scientists worried about global warming because one-third of CO2 is distributed from the vehicles we drive.
President Bush wants to increase the tax credit from purchasing a hybrid, $1,500 up to $4,000. He and Congress have also approved $300 million for the research of hydrogen fell cell cars. With the prices increasing for oil, we need to do something with the cars that we drive. Kerry also wants to raise the mile per gallon on economy cars from 24 to 36 within the next 10 years. The problem is the auto industry and the workers don't like it. So, Kerry will probably raise the tax credit up to $5,000 for the purchase of hybrid cars.
I believe that something has to be done about the rising prices we are seeing from oil. I don't believe the government should get involved with the gas prices or hybrid cars. If the market wants hybrid cars then the people will get the cars.

9 comments:

Student 01 said...

If these numbers are correct than what I would draw from this is that Kerry is taxing the poor more and giving the tax break to the rich. Does Karry know what he is saying, or is he just being a donkey, ass, or mule, wharever the democratic mascot is. Raising fuel effeciency on economy cars will hurt the poor, because that is what they buy, by makeing the economy car more expensive. Raising the tax credit higher then it already is helps the rich because they are the only people that can afford the hybrid cars.

Joe said...

I agree if the economy wants the hybryd cars then they are going to come. Will the tax benefit have a strong enough incentive to push more people to get the cars or will it just benefit the rich who probably would have bought one anyway? I dont know. I guess I will have to wait and see what happens in the future. I know right now I would not be in the position to afford one even if they had a $4,000 tax break.

Anonymous said...

global warming is a theory that is it. Sure, breathing smoggy air sucks, and it causes health complications, but global warming as a platform to rally a hybrid car is silly. I am just as down as anyone else to buy a ride that cuts costs of operating, but no so down when that same car has as much horse power as a horse and buggy, and the price of fixing it would cost me my liver in a black market auction. There will have to be a much larger push to get GM, Toyota, and Ford to restructure their operations to make way for the r&d of a hybrid car, then all the implications of the rest of the world market to make the change as well. Not to mention the conflict of interest of Oil companies to back off and support such a revolutionizing adjustment.

Bryce Larkin said...

I’m not sure that this tax break, for buying hybrids, is for the rich. The thought of rich people probably already having a hybrid may not be correct. I believe the upper class will not buy as many hybrids as the middle and lower middle class. The upper class does not care about a $1.00 increase in gas, they just buy it.

peter_parker said...

Now if Mercedes or BMW came out with a hybrid, the upper class would definitely buy it. They suck anyway, people just buy to be seen. They are as unreliable as me scoring 100% on one of Tufte's tests. It will be a hard transition from regular cars to hybrids due to the cost of repairs and what not. They might save a little on gas, but the cost of repairs can more than compensate for that.

Rufio said...

Hybrid cars are a great idea for the environment, but I don't think that the government should be getting involved with the automobile market. Let the demand for hybrid cars be increased by the producers of them. The producers of hybrid cars could do this by making a small, more affordable car just like Hummer did. The increase of demand in hybrid cars should not be the worry of the government, especially since there are so many other more important issues out there.

John West said...

I know that economists believe that an open, free market is always the end-all in getting sufficient results for whatever is needed. Say for instance, the comment about the government not doing anything as far as tax credits for hybrid purchases. The government does exist for some purposes and it is in this instance that I believe people may need some kind of incentive in order to want to purchase a hybrid.

Maudi said...

Bush is a smart man and he understands the fuel issue that the U.S. dealing with. Hydrogen cars are going to be a great alternative power source if we can harness that energy. BMW a britsh motor company already has a Hydro-car and it seems to be a bright idea. I commend Bush for trying help ease the burden of finding more fossill fuels.

Dr. Tufte said...

Two of the three suggestions here bother me.

Giving a surplus to producers to do R&D is sensible - it may help them overcome fixed costs that might keep them out of the market.

But subsidizing buyers is a bad thing. This cash goes straight to the producers.

I also don't agree with the increase in MPG requirements. The standard way the automakers achieve this goal is by making lighter cars, that are also less safe. You have to be really dumb to think that's a good tradeoff.