Lawmakers Weigh Credit for Hybrid Cars

[Rose Siding]

WASHINGTON -- The White House promoted it and there was widespread support in Congress, so a tax credit for buyers of gasoline-saving hybrid cars seemed certain to find a way into the energy bill.

But lawmakers have not decided whether to include the tax break in legislation even though it is one of the few offerings that would directly affect consumers and fuel consumption.

Many Democrats and other critics of the energy policy blueprint developed largely by Republicans say the struggle over the hybrid car tax credit reflects the bill's tilt toward production at the expense of efforts to cut energy use.

When it comes to energy efficiency "it's a bologna sandwich ... while (energy industry) lobbyists are feasting on steak," complains Mark Hopkins, head of the Alliance to Save Energy, a private advocacy group that promotes energy conservation.

snip>

Last year and again in the summer, the Senate approved a measure that would save consumers an average of $2,000, through a tax credit, for people buying a hybrid vehicle such as the Toyota Prius or Honda Civic, which already are on the market. But the House in its energy bill ignored the credit.

http://www.newsday.com/news/politics/wire/sns-ap-energy-consumers,0,7992476.story?coll=sns-ap-politics-headlines

[tlb]

1. I'd forgotten about this from the 2000 campaign

but I vaguely seem to recall both Gore and Bush endorsed such credits. If I had given it any thought at all I would have assumed this was already law.

[The Zanti Regent]

2. Where are the American hybrids?

Oh, why even waste the time asking...

[Mika]

3. Arnold is working on hybrid Hummers

After all, a business can get a $100,000 tax credit for 'heavy' vehicles.

And another $2000 for a hybrid Hummer?

Soon, hybrid Hummers will cost the business buyer almost nothing - us US taxpayers will gladly foot the bill (with decreased social services, and a higher roadkill rate).

[leesa]

5. Hybrid Hummer is sure to get 12 miles per gallon!

What a joke these thieves in the fossil fuel industry are.

[pasadenaboy]

4. Hummers get a tax break

hybrids don't

Thank you GOP!

Shortsighted A-holes!

[Chango]

6. The problem with this proposal is.....

If buyers received a tax break, the dealers would increase the price. They are already gouging the few buyers who are in the market. I'd like to buy a Hybrid, but I'll be damned if I'm going to pay $20,000 or more for a compact car.

[evworldeditor]

7. Hybrids Get $2000 Tax Credit for 2003

Buy a new Prius, Honda Civic Hybrid or Insight before the end of this year and you can take $2K off your taxable income.

http://evworld.com/databases/shownews.cfm?pageid=news081003-06

As for where are the American hybrids? About five years behind the Japanese. Ford Escape HEV delayed now until late 2004. GM keeps saying they will offer a hybrid pickup next year, but I didn't see it at the Michelin Challenge Bibendum last month in Sonoma. Maybe they'll have it at EVS 20 in Long Beach next month.

Chrysler killed their hybrid Durango and are now talking about a hybrid Dodge Ram pickup. I've seen the prototype at Chrysler's Liberty technology center, but that's all I've seen in the last two years.

Why has it taken so long for the Big Three to come up with hybrids? Because they've been unwilling to lose money to establish market share, which both Toyota and Honda have been willing to do. It's far easier to make huge profits -- $15K per SUV is typical -- on sport utes than lose money on a relative handful of HEVs. But I believe this strategy is very shortsighted. The Big Two -- Chrysler is now a German company -- are continuing to lose marketshare to Toyota and other foreign manufacturers. The reasons are more complex than just technology related, but the bottom line is, Detroit's shortsightedness will ultimately undermine an industry that has more retirees on pensions than active employees.

You can't continue to focus on near-term profits without eventually harming your company, its employees and shareholders.