Future of the Automotive industry in the US
11-23-05, 05:32 PM
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Future of the Automotive industry in the US
Ford pushes government to put on an energy summit By James R. Healey, USA TODAY
Wed Nov 23, 6:46 AM ET
In a striking move, Ford Motor CEO Bill Ford said Tuesday that automakers need to help reduce America's oil use and that the government should convene an energy summit with carmakers and energy companies to make that happen.
Ford (F) told the Business Roundtable in a speech here that he has bet his company on alternative power, such as gas-electric hybrids, ethanol, clean diesel and hydrogen. The goals, he said, must be "to provide relief to Americans at the pump and to lower our country's dependence on foreign oil."
For an auto chief to decry the petroleum dependence his industry has helped create is "very unusual, and it's a hopeful thing," says Deron Lovaas, in charge of vehicle issues for the Natural Resources Defense Council, an environmental group.
Ford sells the only 2006-model SUVs rated 30 miles per gallon or more in highway driving, according to the U.S. Environmental Protection Agency. Some '06 Ford Focus small cars and Fusion and Mercury midsize sedans are rated 30-plus.
Rival General Motors (GM) offers more 30-plus mpg models than Ford does, and import brands dominate the high-mileage lists.
Nevertheless, Ford's plan to emphasize fuel economy and alternative fuels in the future "is important because the head of a major auto company is admitting that things have to change. It's taken a while to get there, but better late than never," says David Friedman, director of clean vehicles research at the Union of Concerned Scientists.
Ford called for government tax breaks and other incentives to companies developing alternative-fuel vehicles and to buyers as a way to erase the price premium of hybrids, diesels and others. He suggested that government money could help convert outdated factories "into high-tech facilities" to manufacture "advanced technological vehicles and components."
Ford "might be looking for love in all the wrong places. Every time the government does something for you, it does something to you," warns Fred Smith, president of the Competitive Enterprise Institute, a free-trade think tank.
Ford met with what Ford Motor described as "senior White House officials" after the speech to discuss "the goal of (the U.S.) becoming energy independent." Ford Motor said the White House hasn't rejected the idea of an energy summit but wouldn't elaborate.
Ford made clear that he isn't being wholly altruistic. Placing more emphasis on developing and marketing alternative-fuel vehicles "will help our bottom line," he said, if he's correct in forecasting that buyers will switch to cars and trucks that go farther on a gallon, use fuel that's not based on petroleum, or both.
The guy writing the article makes the point that the automotive industry has made much of the mess themselves but they have to be going nuts. A couple of hurricanes go through, gas goes to $3+ a gallon and the US consumer dumps sputes overnight. Now, gas has dropped by almost a buck a gallon here and gas mileage could become a non event. The dimwits running Detroit have to figure out how to keep paying for all those retired UAW workers and the thought of betting on hybrids just to have the price of gasoline plummet would make their little world worse. Unless of course they can figure out some way to have the US taxpayer pay to cover whatever ridiculous business plan they decide to try and implement.
So let's hold an energy summit to make sure if we develop hybrids and the price of gas stays low that the tax payer will give us money to keep our stock price high. Unbelievable. Maybe I am reading too much into it but if they believe that fuel efficiency will sell cars, that is making the decision that they are paid to make based on their experience in the car business. But when I read this story I can't help but think that these guys haven't a clue what to do to revive their business and all they are looking for is somebody to cover their poor management.
Wed Nov 23, 6:46 AM ET
In a striking move, Ford Motor CEO Bill Ford said Tuesday that automakers need to help reduce America's oil use and that the government should convene an energy summit with carmakers and energy companies to make that happen.
Ford (F) told the Business Roundtable in a speech here that he has bet his company on alternative power, such as gas-electric hybrids, ethanol, clean diesel and hydrogen. The goals, he said, must be "to provide relief to Americans at the pump and to lower our country's dependence on foreign oil."
For an auto chief to decry the petroleum dependence his industry has helped create is "very unusual, and it's a hopeful thing," says Deron Lovaas, in charge of vehicle issues for the Natural Resources Defense Council, an environmental group.
Ford sells the only 2006-model SUVs rated 30 miles per gallon or more in highway driving, according to the U.S. Environmental Protection Agency. Some '06 Ford Focus small cars and Fusion and Mercury midsize sedans are rated 30-plus.
Rival General Motors (GM) offers more 30-plus mpg models than Ford does, and import brands dominate the high-mileage lists.
Nevertheless, Ford's plan to emphasize fuel economy and alternative fuels in the future "is important because the head of a major auto company is admitting that things have to change. It's taken a while to get there, but better late than never," says David Friedman, director of clean vehicles research at the Union of Concerned Scientists.
Ford called for government tax breaks and other incentives to companies developing alternative-fuel vehicles and to buyers as a way to erase the price premium of hybrids, diesels and others. He suggested that government money could help convert outdated factories "into high-tech facilities" to manufacture "advanced technological vehicles and components."
Ford "might be looking for love in all the wrong places. Every time the government does something for you, it does something to you," warns Fred Smith, president of the Competitive Enterprise Institute, a free-trade think tank.
Ford met with what Ford Motor described as "senior White House officials" after the speech to discuss "the goal of (the U.S.) becoming energy independent." Ford Motor said the White House hasn't rejected the idea of an energy summit but wouldn't elaborate.
Ford made clear that he isn't being wholly altruistic. Placing more emphasis on developing and marketing alternative-fuel vehicles "will help our bottom line," he said, if he's correct in forecasting that buyers will switch to cars and trucks that go farther on a gallon, use fuel that's not based on petroleum, or both.
The guy writing the article makes the point that the automotive industry has made much of the mess themselves but they have to be going nuts. A couple of hurricanes go through, gas goes to $3+ a gallon and the US consumer dumps sputes overnight. Now, gas has dropped by almost a buck a gallon here and gas mileage could become a non event. The dimwits running Detroit have to figure out how to keep paying for all those retired UAW workers and the thought of betting on hybrids just to have the price of gasoline plummet would make their little world worse. Unless of course they can figure out some way to have the US taxpayer pay to cover whatever ridiculous business plan they decide to try and implement.
So let's hold an energy summit to make sure if we develop hybrids and the price of gas stays low that the tax payer will give us money to keep our stock price high. Unbelievable. Maybe I am reading too much into it but if they believe that fuel efficiency will sell cars, that is making the decision that they are paid to make based on their experience in the car business. But when I read this story I can't help but think that these guys haven't a clue what to do to revive their business and all they are looking for is somebody to cover their poor management.
11-24-05, 11:27 AM
#2
Lexus Fanatic
Interesting article.
I agree that some things in the long run will have to change, but IMO it is not just on the backs of corporate shoulders. The auto companies will have to do their part, but so will unions, the government, and yes,.....us, the public.
In fact, as far as saving gas goes........one of the main points bill Ford brings up.......I myself did a whole CL thread in the aftermath of the hurricanes with many suggestions on how we, the public, can help do just that :
https://www.clublexus.com/forums/sho...=ways+save+gas
I agree that some things in the long run will have to change, but IMO it is not just on the backs of corporate shoulders. The auto companies will have to do their part, but so will unions, the government, and yes,.....us, the public.
In fact, as far as saving gas goes........one of the main points bill Ford brings up.......I myself did a whole CL thread in the aftermath of the hurricanes with many suggestions on how we, the public, can help do just that :
https://www.clublexus.com/forums/sho...=ways+save+gas
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