Shortly after the University of Michigan released a report indicating that auto executives believe gas prices and CAFE standards will increase dramatically in the next decade, Rick Wagoner said, "With the price of oil at its lowest level in 19 months, we run the risk of reverting back to our traditional energy policy, that is, relying heavily on the lowest-cost energy available on world markets, including imported oil, without providing adequate support for developing alternative sources.

"One of the things that government has to do to really promote energy diversity is proactively support the development of alternative fuel technology, And incentivize consumers through tax credits, fuel subsidies and so on to adopt these exciting new technologies."

Wagoner and GM have been focusing a good deal of research and development towards alternative energy vehicles in the past few years. This is evident by the release of the Chevy Volt, which was preceded by their hydrogen fuel cell platforms and the EV1 electric car programs, and even as far back as the 70's hydrogen tests. Also, don't forget their plug-in plans for the Saturn Vue hybrid. Additionally, GM has been producing E85 capable vehicles for a few years now, and last year advertised them heavily.

Although Wagoner believes that the government could and should help out, he fell short of suggesting that the federal gas tax be enlarged, as did Tim Leuliette, chairman and CEO of Metaldyne Corp. as mentioned today in a different post. These are certainly hot-button topics to many, and if you have an opinion you would like to share,
feel free to do so in our comments.

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[Source: Detroit News]

(Whoops. Edited to correct name)

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