Obama’s EV Strategy and Energy Department Spending Questioned by House Panel

The Obama administration has put a lot of weight behind electric and alternative-fuel cars, offering tax incentives in order to increase their sales and reduce fuel consumption and CO2 emissions.

According to a DetNews report, the chairman of the House Science Committee’s panel on energy and environment, Andy Harris, has sent a letter to Energy Secretary Steven Chu requesting information about Obama’s proposal to spend more than US$1 billion in tax incentives and related infrastructure.

In his letter, Harris questions the proposed increase of tax incentives by US$2,500 for buyers of “clean” vehicles. He says that, according to GM, the average Chevrolet Volt owner has an annual income of US$170,000.

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GOP Budget Committee wants to Axe All “Green” Loan Programs and High-Speed Rail Funds

Five years ago, U.S. President at the time George W. Bush created the Advanced Technology Vehicle Manufacturing Program. It was a legislation providing up to US$25 billion of low-cost government loans to automakers in order to restructure their facilities and develop fuel-efficient vehicles.

The same program continued under the Obama administration, which has made reducing greenhouse gas emissions and promoting the use of alternative energy sources one of its priorities.

However, after the bankruptcy of solar panel maker Solyndra, LLC which had received US$535 million in federal loans, the Energy Department has frozen all funding pending a review. This had a negative effect on upstart companies, such as Fisker Automotive, which relied heavily on these subsidies.

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Volvo CEO Criticizes EU’s Strategy on CO2 Emissions Reduction and Electric Cars

Stephan Jacoby, President and CEO of Volvo Cars, said today at an industry seminar in Brussels that the European Commission’s plan of reducing CO2 emissions and promoting electrification throughout Europe is mistaken.

Jacoby believes that a lack of a cohesive incentive strategy and over-optimistic targets set by the EU will not have the desired effects. He said that the high cost of hybrid and all-electric vehicles is currently preventing European car buyers from adopting them.

“Volvo Car Corporation urges the EU to coordinate incentives while supporting research and development”, said Jacoby, adding that if this does not happen, European carmakers will have to deal with the consequences.

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Obama Strikes Back Over Rising Fuel Prices, Accuses Republicans of "Liking Gas Guzzlers"

The election battle in the U.S. is heating up and the issue of increasing gas prices is at the agenda of both the Democrats and the Republicans.

One of the three candidates for the Republican Party presidential nomination, House Speaker Newt Gingrich, has called President Obama “President Algae” for his commitment to alternative sources of energy.

Obama, who has made efforts to reduce America’s dependence on oil by offering incentives for vehicles powered by alternative sources, responded to his opponents during his speech at students in Maryland, according to a DetNews report.

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Opel Ampera to Run at the 2012 Rally Monte Carlo

The Chevrolet Volt's European twin, the Opel Ampera, will be making its inaugural appearance at this year's edition of the international Rally Monte Carlo.

All in all, six Ampera sedans will participate in the “Alternative Energy” version of the rally, which starts in Annecy-le-Vieux, Clermont-Ferrand and Lugano on March 22 and finishes three days later in the capital of Monaco, Monte Carlo.

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U.S. Senators Criticize DOE of Mishandling “Green” Federal Loans

In 2007, the federal government created the Advanced Technology Vehicle Manufacturing initiative to help automakers and suppliers develop alternative technologies.

According to DetNews, on Tuesday, March 13, during an Energy and Natural Resources Committee hearing, many senators accused the Department of Energy (DOE) of mishandling the US$25 billion program.

They said that the DOE had not offered a new retooling program in a year and no new major loans in the past two years. Republican Senator Lisa Murkowski said that the department had made the program “virtually dormant”, while others, like Senator Rand Paul, went as far as saying that “we need to get out of this business” as the program makes no sense at all.

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