Friday, May 22, 2009

Mr Obama More in a week than Bush In Eight years




Efficiency standards for autos sold in USA since 2016, are up
What environmentalists were not able to enforce, was achieved by those who use the oil prices to push Americans into an economic crisis which could be the worst in history or influence USA foreign relations.

Fuel economy standards are going up by 8 miles per gallon per vehicle by 2016, which means at least 1.8 billion barrels over the life of the cars sold in a five years period, more than the oil imported from Saudi Arabia, Nigeria, Venezuela and Libya combined for the last year, or taking 58 millions autos off the road for a full year.
It has been ironic at least to see how American dollars are going into non friendly pockets. Whether the economic and environmental side of the savings is important, the impact on security is enormous as there are less dollars for non friendly countries and there are more dollars to expend inside.

An step like this was almost impossible or at least politically complicated just a year ago. However, Mr Obama, flanked by CEOs of world automakers, like General Motors, Ford, Chrysler, Mercedez-Benz, BMW, Volkswagen, Nissan, Toyota, Honda, and the United Auto Workers, governors, democrats and republican leaders gave us the news about the higher standards for oil consumption and better energy use, which is a very important change. GeneralMotors plans to retool its Lordstown plant to make the Chevrolet Cruze, a vehicle expected to get more than 40 miles per gallon.

Mr Obama´s announcement goes beyond what was expected from the auto industry which estimates were to 33 miles per gallon by 2020. Even though as of February 2007 there were 113 cars available abroad with consumption levels of 40 miles per gallon or better, only 2 of these cars were sold in the USA.

It is obvious the environment is receiving great help from this step ahead, but the reasons behind Mr Obama´s announcement are based on economic, political and strategic motivations. Mr Obama has done for energy savings and the environment, more in a week than George Bush did in eight years at the White House.

Oil global demand is growing steadily to fuel high prices. The USA consumption is about a quarter of total oil consumption, which means an increase of one third compared to two decades ago.

To achieve higher levels of independence from the oil powered engines, the hybrid technologies are increasing their share in the transportation industry. The third generation of the Toyota Prius and the return of the Honda Insight are being joined by the first generation of the Hybrid technologies from Mercedez and BMW. Also there are contribution to overall fuel consumption with more efficient Fords, Chevrolets, Saturn and Hondas. It is expected that 2009 will see at least 500.000 new hybrids on American roads.

During 2008 15 models of hybrid vehicles were on the road, which are now going up to more than 20 models. Fuel economy ratings are expected to go over 50 mpg as new models are being reengineered to use power trains that extend the range of all electric gas free driving.

HEVs or Hybrid electric vehicles combine the benefits of gasoline engines and electric motors which can be configured for fuel economy, increased power or additional auxiliary power for electric devices and power tools.

EV or electric vehicles are propelled by electric motors which are energy efficient, environmentally friendly and provide quiet, smooth operation with stronger acceleration and require less maintenance.

Electric vehicles have lower pollutants emissions. Electric vehicles however, can go 150 miles or less before recharging, while gasoline vehicles can go twice the distance before refueling.

Simultaneously, there are several technologies which are not new but which improvements are helping lower gas consumption and giving engines a power push.
Besides the technological side which is promising, there are many question marks about the future of the big three which are responsible of achieving the new standards provided they survive the difficult times they are facing.
Ford, General Motors and Chrysler are more than traditional names tied to our feelings. They are closely associated to the economic power of America. Patriotic feelings awaken those remembrances when their names were brands close to every transportation requirement around the world.

Now, competition, oil prices, economic troubles and management problems work together against the survival of these emblematic names too close to our lives for us to think their problems are some bodies else problems. Science, technology, management and regulations must work together to achieve the goal of fuel efficient vehicles, lower pollution and high rates of efficiency will make future vehicles environment friendly, engines more powerful and efficient, cleaner air and high performance are dreams that are on their way of being an everyday reality.

Jose Damaso Ramon