The government has made it no secret that its opinion is that electric and hybrid-electric cars are the future, even though many industry professionals, including analysts and engineers seem to think otherwise. Fiat-Chrysler CEO Sergio Marchionne spoke out against this in his address to the Society of Automotive engineers last Thursday. "Regulators are rushing precipitously toward embracing [electric vehicles] as the only solution. Doing that on a large scale will be masochism in the extreme."
He thinks that the electric car subsidies, when they get phased out, might cause an electric car bubble to collapse, and potentially leave us in a worse situation than when we started. Marchionne stated that at our current technological level, he believes compressed natural gas to be the best alternate fuel, and asks governments to stay "technology neutral."
We think that, if governments should remain technologically neutral. Rather than subsidizing specific technologies, it might make sense to take the 19th and early 20th century approach of offering cash prizes to inventors who can overcome the world's largest technological challenges.
[via Detroit News]