The Bush administration enacted a law that allows the Department of Energy to disburse about $25 billion through the Advanced Technology Vehicles
Manufacturing incentive Program. After seating on the funds for eight months, DOE released a big chunk of the money last week.
The move in the House was made by passing the bill with the legislation on climate-change. The proposal will then go to the Senate before being enacted as a law. A similar bill was rejected by the Senate in 2008.
In the program, car manufactures will be able to get government loans of as much as 80% to cover for the cost of R&D, and production of highly efficient vehicles. The payback is stretched to 25 years with approximately 4% of interest. The company needs to issue security interest for the acquisition of any property using the funds.
Assembling a car using the DOE grant has a requirement of making a car that is 25% more efficient than the current standards. So performance cars, trucks, and SUV is out of the picture.
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Auto Industry, Government
Department of Energy, Ford, Government, Nissan, Tesla
A recent study by JATO Dynamics showed that average U.S. market cars release 85% more carbon dioxide (CO2) and incinerate twice as much fuel compared to Japanese and European market cars. The study also proved that Japanese and European vehicles are fast becoming environment-friendly.
In France, Germany, Italy, Spain and the United Kingdom, the average emission of CO2 for all new cars in all categories (SUVs included) is 3.26 tons/year (since the beginning of 2008) based on 12,000 miles/year. While in Japan, the average emission of CO2 is 3.10 tons/year. In the U.S., the average CO2 emission for new cars is a surprising 5.77 tons/year.
When it comes to consumption of fuel, the study found that cars, minivans, and SUVs in the U.S. market consume 10.6 lt/100 km. While European cars consume 5.83 lt/ 100km and Japanese cars consume only 5.79 lt/100km. I suppose American drivers should counter this by reading up on some fuel efficiency tips.
Note that the European CO2 results are affected by the big proportion of compact cars and diesel engines, and the Japanese CO2 average is affected by the large proportion of minicars. While SUVs make up 30% of the total U.S. new car market.
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Auto Industry, Carbon Dioxide, Diesel, Emissions, Micro Cars
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