James A. Croce, CEO NextEnergy
Originally published in the Michigan Energy Report
The massive controversy surrounding CAFE standards, or Corporate Average Fuel Economy Standards, is so intense that it’s difficult to escape the hype coming from all sides.
The fundamental issue is whether an increase in CAFE standards is an effective means to drive the U.S. market towards a sustainable energy future.
From the pro-CAFE standards camp; American automakers are losing market share to the more fuel-efficient vehicles produced by foreign automakers and need the “tough love” only CAFE standards can provide. Plus, CAFE standards will ultimately help force the U.S. to sever our ties to foreign oil, and CAFE standards will also help reduce harmful emissions from our vehicles by reducing the amount of petroleum we burn.
It’s the first part of this argument, the “tough love” argument, which is most troubling to me. I don’t buy Congress’ contention that if the Detroit Three simply bought into CAFE sooner, they would be on a better financial footing today. There is no evidence to suggest that. And other huge and critical issues such as health care costs and unfair international trade agreements are not given due consideration in the CAFE logic. Only recently have we seen a migration among consumers towards energy efficient vehicles and yet, Detroit 3 market share has been on a steady decline for decades. The ailment goes far deeper than the cure CAFE can provide.
Washington is frustrated with the Detroit automakers over their “just say no to CAFE” history and are determined to “help” by enacting an arbitrary set of CAFE mandates that, ultimately, will not lead Michigan’s auto industry to future prosperity. Michigan’s right-minded Congressional delegates are like voices in the D. C. wilderness arguing on behalf of the Detroit 3 and Toyota. They care for our state, understand the real issues, and are our strongest advocates.
Not so with a majority of delegates from other states. I was invited to Washington D.C. on June 6th by Sen. Debbie Stabenow and Senate Majority Leader Harry Reid to a Senate Democrats “Manufacturing Summit” and heard their anger first hand. The Summit focused on three core issues: health care, trade, and energy. After much discussion, health care and trade issues emerged as far greater detriments to the Detroit 3’s prosperity than their track record of building fuel efficient cars and trucks.
And yet, for now, it is far more expedient for Congress to “save” Detroit by rubber stamping CAFE than to accelerate resolution to the thornier issues of national health care and unfair trade practices. To Congress, it’s “win-win” for the country. But it does not help Michigan. And only exacerbates our problems. Furthermore, the perception of Michigan as a “clean technology” innovation leader greatly suffers as our incumbent automotive industry and Congressional delegation struggle for reason in the CAFE debate.
There is no silver bullet solution to fix Detroit’s automotive market share decline and there’s certainly no silver bullet solution to address our nation’s energy woes. However, it is in our nation’s national security interest to prod consumers towards adopting fuel efficient vehicles as well as a diverse portfolio of domestically-derived alternative fuels.
But it’s a mistake for us Michiganders to expect CAFE to fix the economic woes resulting from a decades-long decline in our manufacturing sector. And, by itself, CAFE isn’t enough to drive our nation’s energy security either. The better solution is a sustained commitment to funding alternative energy innovation (a la the Manhattan Project or the Apollo program), and a demonstration of real political will to “just say no” to large corporate fossil fuel interests.
That’s when real progress will occur. That’s when we will really make a dent in fossil fuel imports. Only then will our nation and the State of Michigan achieve economic security through energy diversity.
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Thursday June 28th, 2007
Toyota Motor Corp. might postpone the launch of the third-generation Prius gas/electric hybrid model by six months — to the spring of 2009 — Japanese industrial daily newspaper Nikkan Kogyo Shimbun reported. According to the newspaper, Toyota is delaying the launch to ensure quality after it decided to forego replacing the nickel-metal hydride battery used in the hybrid gas/electric system with a lithium-ion battery for the first version of the upcoming model.
Toyota and battery partner Matsushita Electric Industrial Co. are developing a lithium-ion battery that many expected would find its way into the next Prius. The newspaper reported last month that those plans were also delayed due to safety concerns.
Toyota is boosting production of the Prius by 40 per cent this year to 280,000 units. Toyota sold 186,000 Prius sedans in 2006 and 313,000 hybrid gas/electric vehicles in total.
Another sign of the green tech revolution sweeping the auto industry: Ford Motor Co. and the Chrysler Group have followed General Motors Corp. in joining the United States Climate Action Partnership, a coalition that wants to reduce greenhouse gases tied to global warming.
The alliance of big business and environmental groups told President Bush in January that mandatory emissions caps are needed to reduce the flow of carbon dioxide and other heat-trapping gases into the atmosphere.
Ford and Chrysler on Wednesday announced their membership in the coalition.
“We are at a critical stage in the conversation on climate change, energy consumption and environmental protection,” Ford President and CEO Alan Mulally said in a statement. “We all recognize it is time for action.”
Mulally and Tom LaSorda, Chrysler Group president and CEO, both said their companies support the partnership’s push for cost-effective, but quick, new technologies.
“We have been actively developing a range of advanced technology vehicles to address the climate change issue, reducing our energy consumption on a global basis and working to create vehicles with the environmental innovation our customers desire,” Mulally said.
By Alistair Scrutton, Reuters, June 27, 2007
NEW DELHI - It may be an Indian consumer’s dream — cheap cars for $2,500-$3,000 within reach of millions of a swelling middle class. But it could also prove to be a traffic and environmental disaster.
Nissan Motor Co.and Renault SA announced last week they were studying a $3,000 car to compete in India against Tata Motors Ltd.’s planned low-cost “People’s Car” targeted at around $2,500 to hit the market next year.
For its supporters, cheap cars like these are what the Volkswagen Beetle was to Germany or the Mini to England — the spoils of an economic boom for aspiring middle classes. To its detractors, India will see an explosion in traffic and pollution on its already clogged roads from its more than 1.1 billion inhabitants.
It will add to India’s CO2 output just as many Western nations push the Asian giant to control emissions.
“India just can’t cope with this kind of pace of expansion,” said Anumita Roychowdhury, associate director at the New Delhi-based Centre for Science and Environment.
“It’s just not sustainable, whether from an environmental point of view or in terms of congestion.”
Read more of the Reuters article on alertnet.org.
[Airhybridblog Editor’s Note: Scuderi Group executives have been in discussions with major OEMs in India about potential licensing opportunities. The low production costs and sharply lower emissions of the Scuderi Engine provide special advantages to fast-growing, developing markets like India. To read about our most recent trip to India, click here.]
The Scuderi Group’s award-winning DVD informational series now has a home — a channel on YouTube. The Scuderi Group’s YouTube channel name is “ScuderiGroup”.
The company will keep the channel current with new video as news develops.
The Scuderi video channel URL is www.youtube.com/user/ScuderiGroup.
