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Technology Stocks : Ballard Power -world leader zero-emission PEM fuel cells -- Ignore unavailable to you. Want to Upgrade?

To: Hawkeye who wrote (3658)	1/11/1999 9:02:00 PM
From: Hawkeye	Read Replies (2) \| Respond to of 5827

Another article I found. Note the comments re new incentives being planned and tax credits being considered. This is consistent with other comments I've made about Clinton upping the ante. GONYEA Q&A FOR WEEK OF 1/11/99 Powering Tomorrow's Clean Cars An interview with America's energy “czar” By Don Gonyea Energy Secretary Bill Richardson was among the dignitaries touring the North American International Auto Show during press preview week. While in Detroit, he held a roundtable discussion with a small group of journalists to explore the status of the joint government/industry Partnership for a New Generation of Vehicles (PNGV), the gas/electric hybrid vehicles being brought to the U.S. market this year by Toyota and Honda, as well as the ongoing sport-utility vehicle sales boom. Richardson was joined by Assistant Secretary of Energy Dan Reicher. Here are highlights of their conversation with reporters: RICHARDSON: This is my first trip to the Detroit Auto Show, the most important international auto show in the world. I came to Detroit because I believe we're in the midst of a fast-moving revolution in personal transportation. The concept vehicles fully support the idea that in the next 10 to 15 years we will see more improvements in automotive technology than occurred in the entire 20th century. This revolution will provide supercars that are significantly more fuel efficient, and with dramatically reduced emissions than today's vehicles. TCC: While there have been some breakthroughs in alternative fuels, we still see consumers wanting bigger cars and bigger SUVs, and gas is somewhere around 90 cents a gallon. How do you get consumers to get excited about these new technologies? RICHARDSON: Admittedly, the low cost of gasoline has been a factor, but we believe that with innovative new technology we are looking at working with the auto companies on a potential tax credit that would reward those that purchase fuel-efficient vehicles. We are looking at a number of other marketing innovations. We are trying to find ways to incentivize a tax credit that is environmentally sound and market-based. I think we need to take other steps to show that this is important to reduce greenhouse gas emissions. REICHER: Even with the sport-utility vehicles there's a great amount of opportunity there to make some dramatic progress in fuel economy. We're seeing some evidence today with the fuel cell-powered Wagoneer. Additionally, advanced clean diesels could have a major impact on fuel economy in the larger vehicles. So, our focus in PNGV and beyond is not only on the small, highly fuel-efficient vehicles, but also moving high-efficiency technology into larger vehicles as well. TCC: The goal of the PNGV program is to develop an 80-mpg family car (i.e. Taurus, Lumina, Camry, Accord) by the year 2004. Please assess the status of the program, which has reached the midpoint of its life. RICHARDSON: This program has been a success. We're going to seek a budget increase. This is part of our climate change objectives of this administration that are going to get renewed interest this year. TCC: Do you have projections regarding how long low fuel prices will stick around the current level, and when fuel efficient vehicles may become more of an economic necessity? RICHARDSON: We anticipate oil prices will stay at about $15 per barrel, at least over the next year. Beyond that, it's difficult to speculate. Our view is that the market should dictate energy prices. We don't support artificially imposed numbers or timetables by any nation. TCC: As sales of SUVs rise, the average fuel economy of vehicles coming onto the road is falling and the United States is becoming ever more dependent on oil imports. Does that concern you? RICHARDSON: We have a strategy at the Department of Energy to help our domestic gas and oil producers to find ways to conserve energy, to develop alternative sources of energy, by new technology initiates. We have a very active approach to reduce our dependence on oil imports. TCC: There are two gasoline/electric hybrid vehicles coming to market in the U.S. this year from Honda and Toyota, neither of which are PNGV members. Given that, is PNGV playing catch-up with them? Also, given those vehicles' introductions, is PNGV doing enough? RICHARDSON: We think that PNGV has been very successful. It's primarily a domestic American initiative. We commend the Japanese for taking these hybrid steps, but our American manufacturers are doing the same. They are working to develop some of these initiates and we commend them as well. We don't see it as playing catch-up. We want to see progress on all fronts. REICHER: It's not catch-up because PNGV has a more robust goal, which is to produce a larger car meeting the 80-mpg fuel goal, which is higher than what we expect the two Japanese cars to get. (What we are working toward is a car with) five- to six-passenger room, all the safety and affordable characteristics of a similar car. Obviously what Toyota and Honda are putting into the market is a very important step and we welcome those steps, but we need to push on to this higher-mileage, bigger automobile that is the goal of the PNGV program. TCC: GM has an electric vehicle it is selling, the two Japanese hybrids are coming, but all of the alternative fuel vehicles out there need to be heavily subsidized by manufacturers to sell them. Given that, is there a danger that manufacturers will lose interest in this process? RICHARDSON: It doesn't sound like that to me. We think there's a lot of potential. When you develop research-and-science-based technology, you know, there's a curve where technology reaches a point where it starts working effectively, and we're going through that stage. · Home · News and Features · Columns · Consumer Driven · Calendar · · Links · Photo Gallery · Talk Back · TCC Mall · Copyright © 1999 by The Car Connection(tm), All rights reserved. The Car Connection is a Trademark of DA Acquisitions, Inc.