Chrysler, GM plans due Tuesday | Freep.com | Detroit Free Press: "Since his Detroit Economic Club speech in 2007, Obama has challenged automakers over their reluctance to meet tougher fuel economy standards. Since taking office, Obama has tied environmental goals to economic revival, suggesting Detroit would become competitive only when it catches up with foreign automakers in efficiency.
The president has long been a booster of plug-in hybrids, a technology he's frequently referred to while pushing his economic stimulus. He also has vowed to let any state set its own limits on greenhouse-gas emissions from vehicles, which automakers oppose, and promised a review of federal fuel economy standards.
But greener vehicles come with higher costs in design and manufacturing and, ultimately, higher sticker prices. Will consumers be willing to pay significantly more for hybrid or plug-in vehicles, especially if gas prices remain depressed, giving them less incentive to buy a 40 m.p.g. car? The Bush administration was ready to set higher fuel economy standards last year but passed, partly because of the price tag: $31 billion for Detroit automakers alone through 2015.
Despite the focus on hybrids, they accounted for 2% of the market last year, and plug-ins aren't expected to be available in large numbers until at least 2015."
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