Clinton wants to gas up enthusiasm for fuel-efficient cars

Lightweight steel may be used for better fuel efficiency

February 2, 1998
Web posted at: 11:28 p.m. EST (0428 GMT)

DETROIT (CNN) -- President Clinton's plan to provide tax breaks for buyers of fuel-efficient cars shows faith in the emerging technology, but the proposal could face many obstacles.

GM and Chrysler say they're in favor of any plan that encourages fuel economy and puts money back in the taxpayers' pockets. Ford says it is not ready to comment.

"It is a signal that the government thinks fuel economy and new alternative or fuel-cell vehicles are a good idea," said J. Ferron of Coopers and Lybrand.

The credits would begin in 2000 and be phased out by 2010.

Clinton wants to offer a $3,000 tax credit after December 31, 1999 for the purchase of a vehicle that gets twice the fuel economy of other vehicles in its class. Beginning January 1, 2003, he'd offer a $4,000 tax credit for buying a vehicle with triple the gas mileage of a similar car or truck.

The tax credits are part of a wide-ranging plan to improve energy efficiency in the United States.

The move is designed to spur the auto industry into producing more efficient cars and getting them quickly into their showrooms.

Each of the Big Three automakers is working on fuel-cell vehicles that get twice the gas mileage of conventional vehicles.

The U.S. Council for Automotive Research (USCAR) consortium is also working on improving battery technology for electric vehicles and on using lighter materials such as aluminum and lightweight steel to coax extra miles from each gallon of gas.

With sales of gas-guzzling sport utility vehicles and pickup trucks at an all-time high, the president's offer may be a hard sell. Gas now is cheap, and alternative fuel vehicles are too expensive.

Some buyers might think the tax credit isn't enough, or that the new vehicles wouldn't necessarily be better in terms of maintenance.

Said one customer: "I gotta go with the internal combustion."

Detroit Bureau Chief Ed Garsten contributed to this report.

Related stories:

• Clinton Unveils His Balanced Budget - February 2, 1998
• The Budget: Nitty-Gritty Details - February 2, 1998
• Republicans Criticize New Spending In Clinton Budget - February 2, 1998

External sites are not endorsed by CNN Interactive.

---

 

---

Sound off on our message boards & chat

© 1998 Cable News Network, Inc.
A Time Warner Company
All Rights Reserved.

Terms under which this service is provided to you.
Read our privacy guidelines.