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I don't thinks so, but read this article and you
will find out why not all news that's printed is
fit.<br><br>Bush's credits for hybrids hailed, details wanted
<br><br>Updated 5:07 PM ET May 17, 2001 <br>By Justin
Hyde<br>DETROIT (Reuters) - Environmentalists and the auto
industry welcomed President Bush's plan Thursday for a set
of tax credits to promote high-tech vehicles that
offer large gains in fuel efficiency.<br><br>But there
was some wariness on both sides, which want more
details about the size and scope of any credits for cars
and trucks powered by fuel cells and gas-electric
hybrid engines. Automakers want the credits to apply to
the widest variety of designs, while some
environmentalists want credits tied directly to fuel economy
improvements.<br><br>The credits "get to what (the federal fuel economy
standard) doesn't get at, namely the demand side." said Tim
McCarthy, president of the Association of International
Automobile Manufacturers, a trade group of foreign
automakers. "It's one thing if you provide the supply, but
it's another thing if people won't buy
them."<br><br>President Bush's plan provides $4 billion for consumer tax
credits between 2002 and 2007. Some bills in Congress
would set up similar incentives.<br><br>Two automakers,
Honda Motor Co. Ltd. and Toyota Motor Corp., already
offer hybrid cars, which combine a gas engine with an
electric motor and a battery pack to increase fuel
efficiency. The two-seat Honda Insight gets 70 miles per
gallon at highway speeds -- the highest fuel efficiency
of any car sold in the United States.<br><br>While
hybrids have been held out as one of the most promising
ways to improve fuel economy, current hybrid cars
carry a severe price penalty, and sales have been held
to about 17,000 a year. The Toyota Prius hybrid is
based on the Toyota Echo compact, but costs about
$5,400 more with similar options. Even at $2 a gallon
for gas, a driver who puts 15,000 miles on the Prius
a year would have to own the Prius 22 years to make
up the difference.<br><br>General Motors Corp., Ford
Motor Co. and the Chrysler side of DaimlerChrysler AG
have all committed to offering hybrids in 2003, but
have said production will be limited due to the high
cost and uncertainty about their popularity. Their
first vehicles will be either trucks or sport utility
vehicles, which offer greater potential fuel savings over
small cars.<br><br>Environmentalists said the credits
would help drive demand, but said improving the fuel
economy of all vehicles was still the top
priority.<br><br>"Tax incentives are in no way a substitute," said
Therese Langer, transportation program director for the
American Council for an Energy Efficient Economy. "They
are a promotional measure which would help meet a
stricter (fuel economy) standard."
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