Excerpted from this week's Automotive News.
Significant negative economic impact of hybrid sales, according to the author. An interesting point of view to consider:
As Toyota's Prius is the market-dominating and iconic hybrid, it is the logical subject for a discussion of hybrids and economics.
By the numbers
Although a discussion of the economy, and particularly economics-based numbers, is often boring, a quick review of only four numbers is all that is required to cover the basic points here.
The first number is $3,000. A Prius, driven five years and 125,000 miles (rather than one of the 20-some nonhybrid small cars on the market) will reduce our national crude oil trade debt by approximately $3,000.
The second number is $13,000.
Importing a Japan-sourced Prius will immediately add, in round numbers, $13,000 to our national trade debt.
The next number is $1,700. In 2006, the federal government will give an average $1,700 tax credit to buyers of the Prius.
Another interesting number is $1,000. Some studies indicate that the owner (or series of owners ) may never break even with a Prius hybrid because of higher initial price, costlier insurance, license, general maintenance and battery replacement. Others indicate that the owner (or series of owners) ultimately can save about $1,000.
The money trail and economic consequences of those counteracting trade and ecological policies range from odd to incomprehensible.
There are alternatives
Our federal government, deep in debt and without sufficient funds to repair our highways or provide decent health care, will borrow from a domestic or overseas source, possibly Japan, the $1,700 to provide each Prius buyer with the tax credit, thus adding a net $10,000 (the $13,000 minus the $3,000) to our trade debt and $1,700 to our federal debt.
Hybrids may or may not be the ultimate environmental solution, but there are alternatives to the current practices.
The Prius could be manufactured in the United States, thus eliminating much of the per-unit trade debt.
Also, more of the clean and fuel-efficient PZEV-configured small cars (PZEV stands for partial zero emissions vehicles) could be added to U.S. production schedules. So the tax credits that support the often negative-economic hybrids could be reallocated.
Additionally, cleaner, reformulated gasoline, alcohol, diesel and meaningful gas-guzzler laws could be equally productive.
There must be a balance between ecological and economic requirements.
Significant negative economic impact of hybrid sales, according to the author. An interesting point of view to consider:
As Toyota's Prius is the market-dominating and iconic hybrid, it is the logical subject for a discussion of hybrids and economics.
By the numbers
Although a discussion of the economy, and particularly economics-based numbers, is often boring, a quick review of only four numbers is all that is required to cover the basic points here.
The first number is $3,000. A Prius, driven five years and 125,000 miles (rather than one of the 20-some nonhybrid small cars on the market) will reduce our national crude oil trade debt by approximately $3,000.
The second number is $13,000.
Importing a Japan-sourced Prius will immediately add, in round numbers, $13,000 to our national trade debt.
The next number is $1,700. In 2006, the federal government will give an average $1,700 tax credit to buyers of the Prius.
Another interesting number is $1,000. Some studies indicate that the owner (or series of owners ) may never break even with a Prius hybrid because of higher initial price, costlier insurance, license, general maintenance and battery replacement. Others indicate that the owner (or series of owners) ultimately can save about $1,000.
The money trail and economic consequences of those counteracting trade and ecological policies range from odd to incomprehensible.
There are alternatives
Our federal government, deep in debt and without sufficient funds to repair our highways or provide decent health care, will borrow from a domestic or overseas source, possibly Japan, the $1,700 to provide each Prius buyer with the tax credit, thus adding a net $10,000 (the $13,000 minus the $3,000) to our trade debt and $1,700 to our federal debt.
Hybrids may or may not be the ultimate environmental solution, but there are alternatives to the current practices.
The Prius could be manufactured in the United States, thus eliminating much of the per-unit trade debt.
Also, more of the clean and fuel-efficient PZEV-configured small cars (PZEV stands for partial zero emissions vehicles) could be added to U.S. production schedules. So the tax credits that support the often negative-economic hybrids could be reallocated.
Additionally, cleaner, reformulated gasoline, alcohol, diesel and meaningful gas-guzzler laws could be equally productive.
There must be a balance between ecological and economic requirements.
