Coming to a gas pump near you !

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   Auto Execs Urge Government to Tax Fuel up to $8/Gallon to Increase Fuel Efficiency

CEO at leading parts supplier: "Energy independence...ultimately means that fuel has to be more expensive"

It's no secret that when gas prices dropped early in the year and with the recession in full swing, hybrid sales saw their first drop in years.  Faced with tough new fuel economy restrictions, auto executives had come up with all sorts of unusual suggestions -- such as cutting crash testing -- but now had to puzzle over a new dilemma; what if consumers don't want the higher-priced electric vehicles that they plan to start flooding the market with in less that a year?

At a special Reuters summit in Detroit, numerous auto industry executives are cited as suggesting that the government raise taxes on gasoline substantially to spur the adoption of fuel efficient vehicles.  States Tim Leuliette, chief executive of privately held parts supplier Dura Automotive, "In the United States, we're afraid to touch the fuel price.  We've got to continue to raise taxes in the United States so that, by the end of the next decade, gas is about $8 a gallon in today's terms."

He adds, "What you have to do is do it in a manner that is slow enough and predictable enough that vehicle selection and choices by people over the cycle can be made in a logical way."

Eight dollars-per-gallon gas?  The idea certainly sounds absurd.  However, the idea of the government pouring over $100B USD into the auto industry and partially nationalizing GM and Chrysler might have sounded ridiculous a decade ago too.

Mike Jackson, chief executive of AutoNation Inc., offered similar sentiments, complaining, "The U.S. allows the price of gasoline to go back and forth across this line where the consumers don't care about fuel efficiency and where consumers do care about fuel efficiency."

He suggests a near term fix of taxing gas to around $4 or $5 a gallon to help vehicles like GM's 2011 Chevy Volt EV grab marketshare.  Jerry York, a former GM board member and an adviser to billionaire investor Kirk Kerkorian, concurred.  He states, "Unless gas is $3.50 or $4 a gallon, consumers are not going to want to buy those cars."

Hearing such pleas for government intervention and taxation certainly seems a strange one coming from the business sector, which normally argues and lobbies for minimal government involvement.  However, a growing number of industry executives feel that a $25B USD advanced technologies loan program and the expensive cash-for-clunkers program just aren't doing enough to boost the sales of clean autos.  The solution, they argue, is for the government to hit consumers where it hurts -- in the wallet.

Some are suggesting tax rebates at the end of the year for customers with hybrids and a food-stamp-like subsidy for poor citizens.  But at the end of the day the general message is the same; tax fuel.  Concludes Dura's Leuliette, "Energy independence in this country ultimately means that fuel has to be more expensive."

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Hermes Members Profile Send Private Message Find Members Posts Add to Buddy List Prominent MUSA Citizen Joined: May 19 2009 Location: Middletown Status: Offline Points: 1637	Post Options Post Reply Quote Hermes Report Post Thanks(0) Quote Reply Topic: Coming to a gas pump near you ! Posted: Nov 06 2009 at 5:47pm
	Auto Execs Urge Government to Tax Fuel up to $8/Gallon to Increase Fuel Efficiency CEO at leading parts supplier: "Energy independence...ultimately means that fuel has to be more expensive" It's no secret that when gas prices dropped early in the year and with the recession in full swing, hybrid sales saw their first drop in years. Faced with tough new fuel economy restrictions, auto executives had come up with all sorts of unusual suggestions -- such as cutting crash testing -- but now had to puzzle over a new dilemma; what if consumers don't want the higher-priced electric vehicles that they plan to start flooding the market with in less that a year? At a special Reuters summit in Detroit, numerous auto industry executives are cited as suggesting that the government raise taxes on gasoline substantially to spur the adoption of fuel efficient vehicles. States Tim Leuliette, chief executive of privately held parts supplier Dura Automotive, "In the United States, we're afraid to touch the fuel price. We've got to continue to raise taxes in the United States so that, by the end of the next decade, gas is about $8 a gallon in today's terms." He adds, "What you have to do is do it in a manner that is slow enough and predictable enough that vehicle selection and choices by people over the cycle can be made in a logical way." Eight dollars-per-gallon gas? The idea certainly sounds absurd. However, the idea of the government pouring over $100B USD into the auto industry and partially nationalizing GM and Chrysler might have sounded ridiculous a decade ago too. Mike Jackson, chief executive of AutoNation Inc., offered similar sentiments, complaining, "The U.S. allows the price of gasoline to go back and forth across this line where the consumers don't care about fuel efficiency and where consumers do care about fuel efficiency." He suggests a near term fix of taxing gas to around $4 or $5 a gallon to help vehicles like GM's 2011 Chevy Volt EV grab marketshare. Jerry York, a former GM board member and an adviser to billionaire investor Kirk Kerkorian, concurred. He states, "Unless gas is $3.50 or $4 a gallon, consumers are not going to want to buy those cars." Hearing such pleas for government intervention and taxation certainly seems a strange one coming from the business sector, which normally argues and lobbies for minimal government involvement. However, a growing number of industry executives feel that a $25B USD advanced technologies loan program and the expensive cash-for-clunkers program just aren't doing enough to boost the sales of clean autos. The solution, they argue, is for the government to hit consumers where it hurts -- in the wallet. Some are suggesting tax rebates at the end of the year for customers with hybrids and a food-stamp-like subsidy for poor citizens. But at the end of the day the general message is the same; tax fuel. Concludes Dura's Leuliette, "Energy independence in this country ultimately means that fuel has to be more expensive."

VietVet Members Profile Send Private Message Find Members Posts Add to Buddy List MUSA Council Joined: May 15 2008 Status: Offline Points: 7008	Post Options Post Reply Quote VietVet Report Post Thanks(0) Quote Reply Posted: Nov 06 2009 at 8:19pm
	8 bucks a gallon on gas? I can't think of a quicker way to incite a nation-wide riot than to do something as asinine as that. Apparently, these 's want to see a repeat of the Watts riots of the 60's again. Burning and looting is such a pleasant thing to see on your evening news. These other nimrods are wanting to see 4 and 5 bucks per gallon on a continual basis which is just as bad. Even the clown proposing $3.50 to $4.00 per gallon is out of touch with what the average person can afford these days. They would be advised to keep it under $3.00 per gallon or less. I would say that's about all most can handle.

Hermes Members Profile Send Private Message Find Members Posts Add to Buddy List Prominent MUSA Citizen Joined: May 19 2009 Location: Middletown Status: Offline Points: 1637	Post Options Post Reply Quote Hermes Report Post Thanks(0) Quote Reply Posted: Nov 07 2009 at 11:20am
	They claim that all this climate change save the world crap will escalate gasoline prices as well as home utilities and food. I really don't understand the need to save the world. Save it from what for what ? All I see are people like Al Gore and others who stand to make $billions off some scam while the poor and working class poor go deeper into the black abyss. Middeltown is a fine example of saving the world. Example : the funds spent on the bike path versus spending it to improve the fire houses etc. To me that proves it's all a gigantic scam.