Detroit Automakers Unveil Cleaner Cars, Push for Oil Industry's Help

Strategic Insights -

At the recent North American International Auto Show in Detroit, the Big Three U.S. automakers - General Motors Corp., Ford Motor Co., and Chrysler Corp. - showcased their latest designs for cleaner, more fuel-efficient cars. The unveiling came as the industry faces increasing pressure to reduce tailpipe emissions and meet the goals of the Partnership for a New Generation of Vehicles (PNGV), a joint effort with the federal government to develop a car achieving at least 80 miles per gallon fuel efficiency. The concept cars, such as GM's ESX 2, demonstrate progress toward these goals but also highlight the significant hurdles that must be overcome, including high costs and infrastructure challenges.

Key Takeaways:

  • The Big Three automakers have rolled out concept cars that approach the goals of the Partnership for a New Generation of Vehicles (PNGV), aiming for at least 80 miles per gallon fuel efficiency and reduced emissions.
  • General Motors Corp. has earned a reputation as a leader in developing cleaner cars, with a focus on working with the petroleum industry to make its family of advanced-technology vehicles more viable.
  • Ken Baker, GM's vice president of global research and development, emphasized the need for low-sulfur, cleaner-burning gasoline and a new formulation of diesel fuels to reduce particulate and nitrous oxide emissions.
  • Tosco Corp. has advocated for a 75% cut in the sulfur content of US gasoline, in response to the automakers' call for cleaner fuels.
  • The Big Three are shying away from producing electric vehicles and instead moving toward hybrid vehicles, which run on a combination of alternative fuels and a diesel-injection engine.
  • Chrysler's Dodge ESX 2 concept vehicle, powered by batteries and diesel, would get 70 miles per gallon, but its higher price point is a significant challenge to overcome.
  • Amoco Corp.'s partnership with GM aims to develop cleaner-burning fuels, including di-methyl ether or di-methoxy methane, which would require a coalition of the federal government, energy companies, and auto companies to establish an infrastructure and technologies.

Statistics:

  • At least one concept car introduced at the show meets some of the PNGV goals.
  • The Partnership for a New Generation of Vehicles (PNGV) aims for a car achieving at least 80 miles per gallon fuel efficiency.
  • The Dodge ESX 2 concept vehicle would get 70 miles per gallon.
  • Chrysler estimates that its costlier alternative-fuel vehicles would increase the price by about $15,000 more than a traditional vehicle in the same class.

Sources:

  • "Tosco Corp. Plans 75% Cut in Sulfur Content of Gasoline." The Oil Daily, January 12, 1998, p. 1.