During this week’s “The Business of Plugging In” conference in Detroit, Michigan, Jonathan Lauckner, the GM VP of Global Program Management, told the audience that the government needs to increase incentives for plug-in hybrids in order to generate more consumer interest. According to Lauckner, the costs for these vehicles are high, and volumes are low. Lauckner also talked about GM’s upcoming Chevy Volt plug-in vehicle.
While I agree that the government needs to take a more pro-active approach in stimulating alternate fuels/technologies in transportation (in general), I do not agree that the government needs to do this by dishing out cash. Instead, I think the US needs to follow what many European governments have been doing; they need to increase the tax on gasoline. This will ultimately generate interest in vehicles that are more fuel efficient, such as hybrids, plug-ins, electric vehicles, and even small and efficient diesels.
I’m sure nobody will be ecstatic about an increase in taxes; therefore, the government could compensate by reducing income taxes, for example, or fixing roads, building mass transit systems, etc. In the long run, this will not only help US’s economy, but also the environment.
Let us know what you think in the comments.
Read the full article at The Detroit News.
Tags: Chevy Volt, GM, Government, Hybrid, incentives, plug-in, Prius, taxes, Volt
