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Bipartisan group proposes $84 billion auto package

Bipartisan group proposes $84 billion auto package

Alex Kaufmann August 4th, 2008 Alex Kaufmann By Alex Kaufmann Author August 4th, 2008
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December 31st, 1969 A group of 10 U.S. Senators representing both the Republican and Democrat parties have proposed an $84 billion package that aims to drastically change the current automotive landscape of America. Around $20 billion of the package would go to a project to "support the goal of transitioning 85 percent of America's new motor vehicles to non-petroleum-based fuels within 20 years." The package comes in the wake of stunning losses sustained by the Detroit 3 and general concern about America's automotive future. The package itself consists of several key ideas, including $7.5 billion to encourage the development of alternative fuel vehicles, as well as another $7.5 billion to allow manufacturers to "re-tool and re-equip" in order to make alternative fuel vehicles. In addition to this, tax incentives would also be provided to the tune of $7,500 for every consumer purchasing a vehicle that primarily runs on non-petroleum fuel, as well as $2,500 to those who modify their current vehicles to run on alternative fuels. Other tax incentives have also been proposed in order to encourage the growth of necessary infrastructure to support alternative fuel vehicles. There will also be a $500 million grant for innovations that improve fuel efficiency in areas other than powertrains, such as lighter materials, as well as $2.5 billion component for researching biofuels and implementing the necessary infrastructure to make them viable.
Bipartisan group proposes $84 billion auto package

Bipartisan group proposes $84 billion auto package

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A group of 10 U.S. Senators representing both the Republican and Democrat parties have proposed an $84 billion package that aims to drastically change the current automotive landscape of America.

Around $20 billion of the package would go to a project to "support the goal of transitioning 85 percent of America's new motor vehicles to non-petroleum-based fuels within 20 years."

The package comes in the wake of stunning losses sustained by the Detroit 3 and general concern about America's automotive future. The package itself consists of several key ideas, including $7.5 billion to encourage the development of alternative fuel vehicles, as well as another $7.5 billion to allow manufacturers to "re-tool and re-equip" in order to make alternative fuel vehicles.

In addition to this, tax incentives would also be provided to the tune of $7,500 for every consumer purchasing a vehicle that primarily runs on non-petroleum fuel, as well as $2,500 to those who modify their current vehicles to run on alternative fuels. Other tax incentives have also been proposed in order to encourage the growth of necessary infrastructure to support alternative fuel vehicles.

There will also be a $500 million grant for innovations that improve fuel efficiency in areas other than powertrains, such as lighter materials, as well as $2.5 billion component for researching biofuels and implementing the necessary infrastructure to make them viable.

Tags: Industry

Posted in: News


Comments (4 total)

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  1. By autoque #1, Posted: 8/4/2008

    non-petroleum-based fuel = ethanol????

    If it is, then forget about it. Hate even 10% of ethanol.

  2. By Gus #2, Posted: 8/4/2008

    No, I think they want electric, Hydrogen, etc. Something that doesn't have oil as a base.

    Pure, cellulosic ethanol would be great, but right now we have E85, whihc is 85% ethanol, 15% gasoline, and which is made from corn. This is proving unsustainable due to the corn required.

    As far as the overall topic is concerned, it seems to me one of the biggest issues facing American automakers is the cost of labor. The cars are well made, they have models that people like, and obviously they don't need to be shipped from overseas, so in theory it should be simple. But all the jobs getting outsourced to countries whose standard of living is so far below ours will not help this country in the long run. I understand why it is so, if the laws permit it, and your competitor is doing it, then you have to to survive...

  3. By Stephen #3, Posted: 8/4/2008

    People are quick to rule out ethanol because of the corn thing but there are alternatives, for example there is a bacteria that can break down most organic waste into sugar which can then be made into ethanol (this is what they do with the corn as well) but this means that we can made fuel from essentially trash! Also, with diesels being able to run on veggie oil the possiblities for better fuels are there, I know food prices are skyrocketing but with all this demand eventually a lot of farms producing non-edible produce will pop up and increase supply, and relieve the strain of using the edible produce land and resources.

    http://www.livescience.com/technology/080709-pf-mold-biofuel.html

  4. By Gus #4, Posted: 8/4/2008

    That's what I meant by cellulosic ethanol.
    I think we are on the cusp of something great if that can be perfected...

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