Presidential hopeful Barack Obama has already been pretty outspoken about the auto industry while out on the campaign trail, but the Illinois Senator outlined a much broader energy plan earlier this week at an event in Lancing, Michigan.
Obama’s speech included some pretty ambitious goals, the biggest of which put forth the goal of having 1 million plug-in hybrid vehicles on U.S. roads by 2015 – a tally that took conventional hybrids 9 years to hit, according to Green Car Congress. In order to help achieve that goal, Obama’s plan also outlined a tax incentive system that would offer consumers a $7,000 tax credit for purchasing such advanced technology vehicles.
Obama’s energy plan also calls for all White House fleet vehicles to be plug-in hybrids — “as security permits” – within a year of Obama taking office, with half of all federal government vehicles to be plug-in or electric vehicles by 2012.
Other points of Obama’s speech included a 4 percent increase in fuel economy standards per year, a $4 billion tax credit to help automakers and suppliers build more fuel efficient vehicles and a mandate that would require all vehicles to have flex-fuel capabilities.
While Obama’s energy plan looks great on paper, it remains unclear exactly how realistic it is. Plug-in hybrids aren’t slated to hit the market until late 2010 or early 2011, and they will likely only be available in very limited quantities for the first year or two. The government tax credit should make plug-in hybrids more attainable, but the technology will still likely price many consumers out of the segment. However, a lot could change in the auto industry in the next 7 years so Obama’s plan might not look so far out there in a few years, given he is elected to office.
