never thought I'd hear this: Automakers asking for more fed. Gas Taxes

[nthfinity]

http://www.usatoday.com/money/autos/...ar-sales_N.htm

By Sharon Silke Carty, USA TODAY DETROIT — The auto industry is warming up to the idea of higher taxes on gasoline to force buyers to keep considering fuel-efficient and small cars. Automakers have shifted dramatically to production of small cars and expensive fuel-saving technologies partly to meet looming stricter government fuel-economy regulations. The carmakers acknowledge that raising the gas tax is an unpopular idea, but they also saw how fast consumer preference shifted toward small cars when gasoline prices topped $4 a gallon last summer. Without that economic incentive, the tide is turning back to bigger cars, crossovers and trucks. And that could be a problem for automakers such as General Motors, (GM) which are investing millions to get fuel-saving technology on the road. At the North American International Auto Show Monday, GM CEO Rick Wagoner said taxing gas or providing rebates on fuel-efficient cars "is going to be the most effective way to move the needle fast." Gas now is taxed at the federal level at 18.4 cents a gallon. States tack on their own taxes, as do some metro areas. But the total pales in comparison with what European drivers pay. Taxes are about 60% of the pump price in Europe — pushing fuel prices as high as $6 a gallon now. Automakers want to be able to charge premium prices for their smaller cars to make up for profits lost when sales of high-margin trucks fell off a cliff. They also must cover the cost of fuel-economy-related hardware and materials needed to meet federal rules — as much as $1,000 a car. The issue could be crucial even for Toyota, considered financially stronger than the U.S. automakers. On Monday, Toyota unveiled the new Prius hybrid, which will get more than 50 miles per gallon in the city and is coming to the U.S. this summer. Bob Carter, group vice president and general manager of the Toyota division, says consumers respond to gas prices: When they're high, Prius sales are strong; when they're low, Prius sales fall. That doesn't surprise Mike Jackson, CEO of car-shopping site AutoNation, who has pushed for higher fuel taxes for more than a year. He says consumers talk about wanting fuel-efficient cars but don't buy them until gas prices are sky-high. "We watched the consumer stampede to fuel efficiency in May, and now the herd is getting ready to stampede back to their old ways," says Jackson. "We have the most unbelievable technology around fuel efficiency, but no one will buy it if gas prices are this low."

It's a sign, and perhaps a result of the bailout; forcing Detroit to make cars that people don't feel bound to buy... further deepening a looming bankruptcy...

Meanwhile, this is why I LOVE Ford's current position. They have no requirement that the other two have hanging like a cold shadow over them

[RC45]

This smacks of insider manipulaiton by the left.

We will never know what happened behind close doors.

[nthfinity]

http://www.reuters.com/article/vcCan...50B1D620090112

Quote:
By David Bailey

DETROIT (Reuters) - The electrification of the car industry will need assistance from government energy policy to spur demand, though the method remains an open question, Ford Motor Co Executive Chairman Bill Ford said on Sunday.

Speaking to reporters at an event in conjunction with the North American International Auto Show, Ford also said the demand for vehicles such as an electric small car Ford Motor has plans to produce in a partnership with Magna International, is also uncertain.

"I do think we are going to need some help in the marketplace with the new administration in terms of an energy policy that would drive demand for these vehicles," Ford said of U.S. President-elect Barack Obama's administration.

Energy policy could take the form of a gas tax, purchase incentives, a program for scrapping older vehicles to spur demand for replacement cars, or some combination, he said.

"With gasoline still below $2 per gallon in some parts of the country, I think we are going to need some help."

Ford burned through $7.7 billion of cash during the third quarter and has told lawmakers that it would like access to a line of credit of $9 billion as insurance against a worsening in the economy. It does not want to tap the line.

The automaker has been in a turnaround plan for several years that includes white and blue collar job cuts, plant closings and asset sales including brands Aston Martin, Jaguar and Land Rover from its former premier auto group.

"Despite some of the economic issues we have gone through the last two years, we have kept our R&D spending alive and we have kept it in a myriad of alternate technologies," he said.

The development of lighter and more powerful batteries has been a key stumbling block for developing electric vehicles, plug-in hybrids and other vehicles, something on which Ford has seen progress in recent years.

"We don't know what the volumes are going to be, we have no idea what the demand is going to be, but it is a road that makes a lot of sense," he said of the electrification program.

One risk to Ford's electrification strategy is the threat that gas prices stay low and sap consumer demand for electric vehicles. U.S. gas prices peaked at a national average above $4 per gallon in the summer, but are half that now.

"We are betting long-term that fuel becomes dear and that energy independence becomes important not only to Americans, but people around the world," Ford said. "The bigger risk is to do nothing."

Ford Motor on Sunday announced plans to deliver electrified vehicles to the market by 2012, including a small full battery electric car in 2011 that will use the Focus compact car platform and a drivetrain from Magna.

The automaker also plans to have a full battery electric commercial van in 2010 and next generation hybrid vehicles, including a plug-in version, by 2012.

"If we go ahead and launch these v"But I don't believe that is going to happen, because I believe that the new administration and the new Congress are going to make this a high priority," he added.

(Editing by Lincoln Feast)ehicles and there is no infrastructure to charge them, the utilities aren't on board and there isn't incentive for the customers ... we could launch these vehicles into dead space," Ford said.

[RC45]

Thats fucked up = so now they want to "fix" the market... so much for naturl supply and demand.. they willl just try force it their way.

We are doomed.

[Mattk]

As unpalatable as the situation sounds, it all makes business sense. Automakers have warmed to the idea of making fuel-efficient cars so they will do everything to keep fuel prices at the high level required to make consumers want to buy them. Sucks for everyone else.

[RC45]

Originally Posted by Mattk As unpalatable as the situation sounds, it all makes business sense. Automakers have warmed to the idea of making fuel-efficient cars so they will do everything to keep fuel prices at the high level required to make consumers want to buy them. Sucks for everyone else.

It makes no business sense at all.

Artificially manipulated price controlled markets and monopolies have always failed in the long term.

[gigdy]

Dear Who ever came up wiith this idea. Go Fock yourself.

[10000rpmlover]

Originally Posted by RC45 This smacks of insider manipulaiton by the left. We will never know what happened behind close doors.

actually, we of course know it is some kind of left motion...

and we all know what happened behind closed doors... lots and lots of Oral sex and anus-tongue action...

I am still convinced that Rick Wagoner bought hookers for the members of congress and then it was supposed to be Ford to pay for ho's for the senate, however as always Ford forgot to pay his tab...

[nthfinity]

Originally Posted by 10000rpmlover actually, we of course know it is some kind of left motion... and we all know what happened behind closed doors... lots and lots of Oral sex and anus-tongue action... I am still convinced that Rick Wagoner bought hookers for the members of congress and then it was supposed to be Ford to pay for ho's for the senate, however as always Ford forgot to pay his tab...

Speaking of the Deuce... Never complain, never explained. There were stories of the Deuce with Colman Young inside a room in the RenCen during an F1 race... Once, the Deuce was pulled over, arrested for drunk driving; while there were two supermodels in the car with him... He was released, and said to the press "Can't complain, and I wont explain"

[Mattk]

Artificially manipulated price controlled markets and monopolies have always failed in the long term.

Russia seems to do pretty well with its natural gas.

[RC45]

Originally Posted by Mattk Russia seems to do pretty well with its natural gas.

Only by the threat of war - hardly a free market at all.

[10000rpmlover]

I saw a G8 today on my commute home, it was white, had the hood that has all the holes on it, I must say, thing looks rather nice for a grand prix replacement, I think GM would do well to start selling more of them here, if only because with depreciation, we can all have them in 2 years for less than 10k, just look at used GTO sales