With everything happening in the auto making industry, experts say that higher fuel economy has been overlooked by many. University of Michigan researchers have concluded in a recent report that increasing auto efficiency 30 to 50 percent could have yields as high as 3 billion dollars gross profit annually.
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The same report suggests that the auto maker General Motors will not be able to adapt quickly enough while still exiting bankruptcy court and restructuring efforts are being made. Industry and political officials have mentioned that the mandates should be relaxed while G.M. and Chrysler finish up their legal proceedings.
Market demand for more fuel efficient autos has been placed on the back burner for quite some time because of the cost associated with new technology that is necessary for the transformation. The report suggests that this cost will be offset by the profits generated.
In a related report this week, the Obama administration has created a new council on behalf of the auto industry and the workers associated with it. The loss of over 40,000 auto related jobs in the past ten years sparked the creation. The White House Council on Automotive Communities and Workers was signed in Tuesday. Vice President Joe Biden traveled to Perrysburg, Ohio to make the announcement.
New auto companies starting up in the country, committees, and higher fuel efficient autos. Is this the secret formula to jump starting the auto industry? Time will tell, but it looks like the mighty wheels of America are starting to turn in a big way.
