He may only have been in office for a week, but it’s clear that President Barack Obama is wasting no time in pushing green cars to the forefront of his agenda.
Despite the fact that General Motors and Chrysler appear to be hanging by a thread courtesy of a government loan while sales continue to plummet, Obama wants a wholesale change in the industry including smaller cars, more hybrids and advanced fuel-saving technologies.
However, these new technologies will come at a price – and that could hit consumers at the worst possible time.
According to consulting firm IHS Global Insight, the upgrades for the vehicles could add anything from $2,000 to $10,000 on to the typical retail price. On Monday, General Motors announced that it would be slashing 2,000 jobs at plants in Michigan and Ohio.
Nevertheless, there appears to be no backing down from the President. On Monday he directed the Environmental Protection Agency to review whether California and 13 states should be allowed to introduce tougher emission standards. He also plans to introduce new fuel efficiency requirements for 2011 vehicles in what will be the first step towards an energy law requiring the industry to boost efficiency to at least 35mpg by 2020.
The question remains however, as to whether these goals can be fulfilled or not. With the industry in shambles, the long term benefits of forcing companies to produce more fuel efficient vehicles may be lost on the manufacturers.
