Do hybrid-car tax credits go the wrong way?
Incentives fall as sales rise
http://www.cleveland.com/autonews/plaindealer/index.ssf?/base/business/1151224430315680.xml&coll=2Sunday, June 25, 2006
John Funk and Christopher Jensen
Plain Dealer Reporters
...Uncle Sam's credits for hybrids made by Toyota - the hybrid sales leader - will be cut in half at the close of business Sept. 30. They will be halved again at the end of the year and slashed to zero at the end of the first quarter in 2007...
The tax cut for buying a Toyota Prius is now $3,150; for a Camry, $2,600. That's off the bottom line on your Form 1040, what you owe the government...
Full tax credits will remain available from the domestic automakers - because they are selling so few hybrids. Of the Big Three, only Ford currently offers hybrids that are eligible for a tax credit: the Escape Hybrid and Mercury Mariner Hybrid.
General Motors plans to offer a hybrid model of its Saturn VUE this summer, but it has not yet been certified by the IRS for a tax credit...
Auto's clout tested
U.S. carmakers face challenge on fuel economy
June 25, 2006
FREE PRESS WASHINGTON BUREAU
http://www.freep.com/apps/pbcs.dll/article?AID=/20060625/BUSINESS01/606250588/1002/BUSINESSWASHINGTON -- Like fireflies at dusk, lobbying receptions pop up most evenings on Capitol Hill when Congress is in session. Corporations and organizations typically count themselves lucky if they lure a lawmaker or two.
But when the heads of General Motors Corp., Ford Motor Co. and the Chrysler Group held a reception May 18 on Capitol Hill, they drew about 60 senators and more than 250 House members. That came after the three chief executive officers -- Rick Wagoner, Bill Ford and Tom LaSorda -- marched through a series of meetings with every leader in both parties from both chambers, a level of attention rarely granted even heads of state.
It was an uncommon public display of Motown's influence in Washington, where the three automakers spend about $25 million a year lobbying lawmakers and federal officials. Detroit's lobbyists have earned back those investments many times over, winning victories on topics from fuel economy standards to arcane portions of bankruptcy laws.
Yet after successful lobbying in 2005, the automakers face a challenging 2006. High oil prices have pushed more lawmakers to favor tougher fuel economy standards, a move Detroit vigorously opposes. The carmakers have lobbied for a stronger response to trade and currency issues, with little result. And at a time when GM and Ford have slashed jobs and closed plants, the automakers have been forced to fight a perception that they're looking to Washington for large-scale relief on health care and pension obligations...