Summit- How to boost fuel efficiency? Raise taxes say execs

Reuters ^ | 11/04/09 | Scott Malone

[Egg]

DETROIT (Reuters) - There's a simple way to get Americans to drive fuel-efficient cars, according to auto executives, but they are not going to like it -- sharply hike the gas tax.

[snip]

Gradually raising gas taxes to the point where fuel costs $4 to $5 at the pump will do more to stimulate demand in next-generation vehicles like General Motors Co's forthcoming Chevy Volt plug-in hybrid than any other policy initiatives...

[j-damn]

*Yeah, make Americans sink all their money into gas tanks and heat, leaving them starving and forced into bankruptcy, and then they will buy a smaller eco-car. Are these people born this stupid? Or did they have to work at it?*

What would make more sense is to just have GM and/or Chrysler build everyone a 40 mpg car and delivery it to each American family—hell, we’ve ALREADY PAID FOR IT.

[DustyMoment]

There's a simple way to get Americans to drive fuel-efficient cars, according to auto executives

I have a much better idea to get Americans to drive fuel efficient cars - put an "auto executive" out front pulling it!!!



(I'd pay real money just to SEE that, much less experience it!!)

[ROCKLOBSTER]

There is an old saying, from hotrod circles..."there ain't no substitute for cubes"...meaning high performance and torque come from large engines...of course...so does low fuel mileage.

I think Chrysler and Ford were on the right track back in the early eighties with small displacement four cylinder turbocharged gas engines. That is the true substitute for "cubes".

A turbocharger gives you high performance out of a small displacement engine while you have your foot in it (getting out into traffic) and then it reverts to being a small efficient engine after you attain cruising speed.

Small diesel turbos are also pretty good...same logic.

The only other thing to make them better would be a heavy flywheel for more torque, instead of the quick revving sporty car mentality.

[jonrick46]

Such increases in gas prices helped knock people out of their houses. Foreclosures began going through the roof when gas went over $3 a gallon.

My question is how can anyone in the position of an auto executives put forward such a bizarre idea of artificially raising gas prices and be so ignorant of the economic realities?

When exec Mike Jackson says, “If we migrate slowly over years to $4 or $5 a gallon, everybody will adjust, everybody will manage. It's not a problem,” he is showing us the short sighted thinking that took the US auto industry down the rat hole. Now he wants to use that same thinking to send the US economy down the rat hole.

[DustyMoment]

No, I agree with the premise about raising taxes to accomplish three things, IMO

Why stop there? Let's add another $1 a gallon tax on top of all your taxes to build a "fitting memorial" to Teddy Chappaquiddick.

We can also add ANOTHER $1 a gallon tax so that "underprivileged" children in Uganda can have a shopping spree at Walmart!!

And, if we toss in a couple of more dollars per gallon on top of that, Obama will be able to be tossed out of the WH in '12 and never have to worry about collecting unemployment!!

As long as we're just tossing stuff in, here, let's just raise the price of gas to $25,000 a gallon (along with all of the gratuitous taxes) and that way, when Jed Clampett discovers oil on his property while hunting for food, he can not only afford to move to Beverly Hills, he'll be able to buy California!!!

[Egg]

Small diesel turbos are also pretty good...same logic.

We could really use the new diesel technologies, but our useless federal government and their "CAFE" standards prevent their employ.

[Egg]

My question is how can anyone in the position of an auto executives put forward such a bizarre idea of artificially raising gas prices and be so ignorant of the economic realities?

They are partnered with government now. Economic realities no longer matter.

[Conservative Vermont Vet]

No, I agree with the premise about raising taxes to accomplish three things, IMO.

1) $4 or $5 per gallon fuel will conserve fuel and lead people to buy less fuel per year and more fuel efficient vehicles. That's been proven three or four times in the last four decades.

2) Add a $1 per gallon tax just to better fund the US military -- with even just the basics: more and better body armor, more ammo, new rifles, more close air support platforms, more C-17 airlift planes (so that our troops don't get hung out on the end of a vulnerable logistical thread), and better veterans' health care, etc. etc.

3) Add another $1 per gallon tax, the revenues to be turned over to States to fix roads and bridges (and no swiping that fuel tax for airports and mass transit rail, etc.)

Oh great and why not another $1.00/gal to fund ACORN; another $1.00/gal to give everyone another $4,500 for Cash for Clunkers and another $1-2.00/gal just on GP.

Sheesh!

Apparently you don't need your vehicle (like some of us do) to earn a living

Don't you realize what a ripple affect this would have on just about everything everyone buys or service they use?

Just because Big Auto has been mandated by DEAR LEADER and his EnviroNut minions to build junk POS vehicles nobody wants, they now advocate Fascist European Socialist measures to force us to have to make changes in our lifestyle few want or will accept gracefully or "willingly."

[Spktyr]

It isn’t CAFE keeping diesels out, but the EPA.

This one I have to go with the EPA on, diesel particulates are nasty and carcinogenic.

[FrankR]

Actually, I wouldn't buy a GM, or "electric" car if gas was $10.00 per gallon.

Ya know, whenever truck drivers go on strike, commerce comes to a standstill. Why? Well, they bring the things people buy to the stores...basically.

So, I thought, what if we turned it around and people didn't go to the stores to buy the stuff they bring? Wouldn't it have basically the same effect, I mean, over the long run?

So, let them raise gas prices, we'll consolidate our trips, stay home rather than eat out, and tell Aunt Sally that you can't come visit this year.

Invest in laptops, high speed lines and webcams, so you can call your loved ones and look at them at the same time. Almost...almost...as good as seeing them in person.

That will eventually back things up, and merchants won't sell as much, therefore won't buy as much, retail, wholesale, and factory workers will get laid off, and then NOBODY will be buying any of their "electric" cars...or any cars, for that matter.

They might think if they make the wheels squeak, we'll "grease" their palms with money to buy the cars, however, sometimes the squeaky wheel doesn't get greased, it gets REPLACED.

You can fool all of the people, SOME of the time....

[B Knotts]

I oppose such taxes, but agree they make more sense than the current regulatory regime (CAFE).

[Egg]

Diesels have come a long way in terms of emissions, including particulates. In most respects, their emissions are better than sparkers.

[Aroostook25]

American auto manufacturers could make a 50 mpg all wheel drive version of the Smart ForTwo or the Tata Nano -- if fuel cost at least one Big Mac per gallon.

[Covenantor]

Others have replied to your first 2 points. Add another $1 per gallon tax, the revenues to be turned over to States to fix roads and bridges....

What do you think the original point of the gas taxes was.

(and no swiping that fuel tax for airports and mass transit rail, etc.)

Yeah. well that was already supposed to have been in the original law, not to go into general funds. But there's that nasty, 'stroke of the pen, law of the land" thing again. Nukes, nukes, and drill, baby, drill.

[Aroostook25]

And upon what basis do you flippantly recommend significant nationwide taxes upon one of the most vital commodities in the nation?

User fees -- those who use roads and those who benefit from national defense and use of military force against islamastan.

[Aroostook25]

I agree with the nuclear power plants. But it will take a decade or two to build enough -- especially with green nimbies being hypocrits (like California where all incoming power and fuel lines should be cut).

Meanwhile...
Our domestic oil industry could use an extra $100 per barrel incentive to drill more.

[jonrick46]

Obamanuism has turned them into K Street whores working to destroy Capitalism with the syphilis of Marxism.

[Aroostook25]

So make a defense surcharge of $42 per barrel tariff on oil imported from anywhere but Canada (Nigeria is a major supplier and it is sinking into Islamic civil war).

[HANG THE EXPENSE]

So the makers of the general motors shitbox hybrid thinks raising our taxes will win us over?Never by a gm anything.

[HANG THE EXPENSE]

I sure as hell hope you are not a representative or senator because your opinions are right in line with the marxist whitehouse.