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Wasted in Detroit history

With all of the automotive bailout activity recently occurring in the USA, it may be instructive to review some Detroit automotive history dating back to the mid 1990s that makes one somewhat skeptical of the long range planning capabilities of the Detroit Big Three management.

In 1993 the US Clinton/Gore Democratic administration and the US automotive industry joined in a Partnership for a New Generation of Vehicles (PNGV) to develop fuel-efficient, low-emission vehicles. This effort included federal agencies, national laboratories, universities and suppliers, as well as the limited participation of the Detroit Big Three. The goal was to develop and demonstrate a vehicle that houses five passengers and can achieve a fuel economy rating of 80mpg. The program also aimed to put fuel efficient vehicle (60mpg) in production by 2004. Approximately 50% of the cost (US$3 billion) was paid for by the US taxpayer. Vice President Al Gore was in charge of the PNGV program since its inception. By the year 2000 each of the Big Three had developed prototype hybrid electric vehicles that achieved a minimum of 72mpg: so the GM Precept achieved 80mpg, the Ford Prodigy achieved 72mpg and the DaimlerChrysler ESX-3 achieved 72mpg.

In early 2001, after the Bush/Cheney Republican administration was elected, and as a result the PNGV program was scrapped with the full support from the Detroit Big Three. Today, hybrid electric vehicles are being offered by every major automotive manufacturer in the world. The hybrid electric system is now acknowledged as one of the most effective approaches to achieve very high mileage and very low carbon dioxide emissions in typical consumer driving, probably for the next 10 to 15 years.

So in summary, the USA Detroit Big Three (GM, Ford and now Chrysler without Daimler) were given a huge technology and market opportunity to lead in this area of automotive technology. In my opinion they missed a trick and wasted the fine gift the then US government gave them.
 

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