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Hybrid Technology a Presidential Campaign Issue

Obama promises $4 billion in support for plug-in cars

By Joe Benton
ConsumerAffairs.com

August 5, 2008

The future of the American automobile is a central issue in Michigan where Obama and Republican John McCain are battling for the state's 17 electoral votes.

High gasoline prices have not only ravaged consumers in the state, they have shaken the automotive industry there causing widespread uncertainty and worry among autoworkers throughout Michigan.

"I know how much the auto industry and the auto workers of this state have struggled over the last decade or so," Obama said. "But I also know where I want the fuel-efficient cars of tomorrow to be built, not in Japan, not in China, but right here in the United States of America. Right here in the state of Michigan."

The Obama proposal would provide assistance to automakers to develop batteries for plug-in hybrids and provide consumers a $7,000 federal tax credit to purchase the fuel efficient cars.

Plug-in hybrids will be expensive. The Chevrolet Volt is likely to cost almost $40,000. General Motors hopes to make the Volt available to consumers by 2010 but developing battery technology is still proving to be troublesome and expensive for the automaker.

Industry analysts suggested $4 billion would help jump start plug-in hybrid production in the U.S., but also think Obama's goal of a million hybrids on the road by 2015 will be difficult to achieve.

Michigan Congressman John Dingell a Democrat and the auto industry's strongest ally on Capitol Hill, has said that U.S. automakers will require more like $30 billion in federal help to make plug-in hybrids a reality for consumers.

Republican candidate John McCain is also in the state promising Michigan voters strong support more offshore drilling to increase domestic oil supplies.

While Obama was speaking in Michigan, McCain supporters handed out free tire pressure gauges, mocking Obama's comments that Americans can reduce gas consumption by keeping their car tires properly inflated.

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