Obama Cuts Funding To Clean-Diesel, Fuel-Cell Vehicles

Obama Cuts Funding To Clean-Diesel, Fuel-Cell Vehicles

Last year, the Obama Administration heavily backed Detroit’s automakers with a big helping of government funding. The bail-out money that was partly provided to General Motors and Chrysler, was for these companies to develop and sell hybrids, plug-in hybrids and pure electric vehicles. The end result was the hardly amazing Chevrolet Volt.

However, the Obama administration still wants to help the electric and hybrid car industry, and their latest move to help move such products is to cut funding for clean-diesel and fuel-cell technology.

So while $80-million was budgeted for clean-diesel development in 2010, for 2011 that budget is cut down to zero. Congress had originally promised $500-million over 5-years for this project. Similar cuts have been made towards the development of hydrogen fuel-cell vehicles.

The money that is being cut from clean-diesel and fuel-cell vehicles will now go to plug-in hybrid vehicles. Under the new plan, the $7500 tax break will be given to the customer at the dealership, not when taxes are claimed at the end of the year.

So while this might be great news for anyone who is looking to buy a plug-in hybrid vehicle, this will have an effect on manufacturers who had invested in other technologies. Essentially, those who manufacture clean-diesel or hydrogen fuel-cell vehicles will see marketing their vehicles in North America pointless.

[Source: Bloomberg Photo Credit: egmCarTech]

  • Mitchell Oates

    Since when is it the job of the government to pick winners and losers in the marketplace? Apparently the government has decided we should all be driving ethanol powered hybrids, and now they’re going to legislatively stack the deck to eliminate the competition to Government Motors and ensure that happens.

  • Jairo

    I didn't rlieaze they were going to bring those back. Thanks for pointing that out! I've been trying to understand why VW stopped selling these because they are right in line with what I want.