Steven Chu

White House Report: GM Volt Is Not Ready for Prime Time

The US only has the production capacity for hamsters - but Asia has horses. And they are Li-ion horses being sold in massive quantities.

The dumbest thing we could do is not stimulate these firms. Of course they are losing. And that is partially due to poor historical policy to create incentives for better technology, manufacturing, and cost reduction. Subsidized gas instead of subsidized EVs and batteries.

It will be expensive. But stimulating these companies is necessary.

Battery technology and vehicle design must be parallel processes and must be continuous. We may end up driving GM/Segway PUMAs instead of sedans, but it won't happen with US batteries if we sit on the sidelines.

And remember, half of the battle is getting consumers used to the idea of using a different type of vehicle - this needs time, momentum, and marketing. It won't happen unless there are incentives from the consumer and producer sides, and unless alternatives (combustion horses) ado not have their carbon mitigation costs priced in.

$27 billion manufacturer incentives, $7500 consumer subsidy, government purchase of EV fleets, and gas tax for $3.50 gas. This is the formula for change.