The American auto industry had barely had time to grasp the green concept when its three major carmakers saw their profits slump as a result of steep oil price rises and a global economic crisis. It was hoped that a green car revolution, brought about by a short-term bailout plan, would be the industry’s saving grace – now however, those plans appear dead in the water.
So what now for America’s green car future?
While the proposed bridge loans did not include any specific provisions relating to fuel efficient vehicles, it was clear that the package was meant to open the door to more oversight from Washington which would have pushed US automakers to make their line-ups more eco-friendly. Indeed executives from the major companies promised a spate of new green cars, including the eagerly anticipated Chevrolet Volt from General Motors.
It appears as though the White House may be reconsidering its objections with talk about dipping into the $700billion Wall Street care package but nevertheless General Motors and Chrysler are both teetering dangerously close to bankruptcy.
In terms of green car production, it may be increasingly difficult for American manufacturers to justify the outlay. Green cars are typically more expensive to make than their counterparts and with petrol prices falling steeply from around $4 a gallon to less than $2 a gallon, the powers that be may prefer to bank on what they already know.
It seems that for now at least smaller, more efficient cars remain a niche product. However, failing to move their ideas forward may only leave the ‘big three’ struggling to float in a sea of uncertainty.
