President Obama’s Budget Plan for Automobile Industry
President Obama’s budget plan, which was unveiled a few months ago, includes plans to bolster the automobile industry not just in Detroit but across the United States, and is a major boon for manufacturers of alternatively-fueled automobiles. It’s a tax credit for manufacturers of vehicles that not only run on alternative fuels, but ones that are not commonly used and that also exceed the miles-per-gallon equivalent by at least 25% (per automotivedigest.com). The credit would go up to $10,000 and instead of going to the purchaser of the automobile it would go to the manufacturer.
This is great. Manufacturers of alternative energy vehicles don’t currently have much incentive to explore various avenues and really buckle down and try to make a better car. This is a great move by Obama in the sense that it will definitely bolster the manufacturing and advertising of vehicles that are even better than the ones that are around now. Let’s face it: while alternatively-fueled vehicles are nothing new, they’ve never gotten past the “cheaper-than-gas-powered-cars” hump that they’ve been stuck at. Now, though, they may finally start pushing up the hill and really setting the tone for development into new energy sources and a decrease in our consumption of foreign oil.
This is great for auto transporters as well because the logistics drivers are always looking for new energy sources to power their vehicles. They don’t like being saddled with paying over $4.00 for a gallon of diesel fuel; it’s a killer for large trucks like that. So finding new energy sources that can power their trucks is great, but what’s even more important at this stage is simply getting more people into the mindset that alternative energy is a growing and lucrative idea that should be explored further.