The Chief Executive of Ford Motor Company, in an interview with CEO Magazine, stated “the internal combustion engine has a lot of room for improvement.” He went on to mention direct-fuel injection, turbo-charging, integrated electronic, new light weight materials, and improved air flow. J.D. Power and Associates identified other ICE improvements, such as variable valve timing, cylinder deactivation, and start-stop technology. Together these technology improvements could result in a 40% reduction in oil use, according to the NAS. The newest generation diesel engines, although more expensive than ICEs, could also increase miles-per-gallon efficiency by 30% or more.
Electric cars are turning out to be a typical example of what happens when the government picks winners in the marketplace rather than letting the market pick the winners. We now have government inefficiently using tax dollars to create a market that isn’t there. There is a reduced incentive to improve battery technology as long as the government subsidizes the market. The government will have to continue to subsidize the hybrid, hybrid electric, and electric car marketplace for the foreseeable future or else it will collapse from the reduced demand.
And here’s something for all the “redistribution of income” progressive types. Even with the government subsidies the costs of these vehicles are prohibitive to lower income families, that means that the US Government is giving money to those “rich types” to buy these cars. Ironic isn’t it?
If you would like to read the entire study it is embedded below: