Ford (F) wants the Feds to help it build and market an electric car. The vehicle manufacturer argues that if Congress does not give incentives to citizens who want to buy the expensive motor cars, they will go unsold. A car with a battery is more costly than the current generation of gas cars. But, if everyone had one, the Arctic ice ledge would stop melting.
The odd thing about this is that Toyota (TM) and Honda (HMC) plan to launch battery cars of their own. They have not been around to see anyone in Washington about getting a special deal for their customers. Or, if they have done it, the meetings have been kept from the public eye.
Detroit has evolved to the point where it does not want to really be in the car business, using the normal economics of profit and loss. It wants to be in the business of having part of its support from the government and part from its customers. Rebates are a way to drive revenue just as certainly as getting a check is.
Does the electric car have a future? It may, if it is left in the hands of the Japanese. They have made money selling tiny cars when the profits on SUVs and pick-ups were better. They have made money on hybrids, which cost more than comparable gas models.They make money because they make more efficient use of capital and their manufacturing facilities.
Congress may help Detroit with the marketing of the electric car, but the legislative body ought to get a commission.
Douglas A. McIntyre
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