There’s only one natural gas car available in the United States and made by a mainstream auto company, and that’s the Honda Civic GX, but despite this, General Motors formed an agreement to work with Westport, a manufacturer of natural gas engines, on the joint development of small compressed natural gas (CNG) engines that could be incorporated into future GM models. When he spoke with the press last week, executive Micky Bly said that his company has no plans to be left behind on CNG technology. He also told Reuters reporters that CEO Dan Akerson has, “…has made it pretty transparent this is an area we need to get back into in the North American environment.”
While GM is primarily focused on smaller engines – as tiny as half a liter – Westport’s area of expertise is mainly with medium and heavy-duty truck engines.
GM isn’t the only American automaker hoping to overtake Honda in the CNG market, however. Earlier this spring, Bloomberg reported that Chrysler has an aggressive CNG development plan in place, and is working in partnership with its parent company, Fiat. Fiat already has six natural gas models for sale in European markets, and is likely to use its experience with that technology to aid Chrysler in complying with federal fuel efficiency standards that are likely to increase as much as 6 percent a year over the next decade. Rumor has it that there’s a CNG-powered Dodge Ram in the works that could be available in American markets by 2017.
So why is CNG suddenly so popular? There are several reasons, not the least of which is that while gasoline prices continue to soar, natural gas remains fairly inexpensive. Then, too there are those afore-mentioned increases in fuel economy standards for cars and light trucks (read: pickups, vans, SUVs).
There are also a bundle of proposed federal incentives likely to pass by the end of the year, including the NAT Gas Act that is credited to T. Boone Pickens, a Texas energy billionaire. It’s recently picked up bipartisan support in Washington, D.C., thanks to Pickens’ history as a natural gas-as-transportation-fuel activist and his ability to court heavyweight allies like the White House.
If it passes, the NAT Gas proposal could be a $4.1 billion bundle of incentives, including purchase credits of as much as $7,500 per personal vehicle and a subsidy of up to fifty cents a gallon on natural gas at the pump. Retailers willing to install CNG pumps would benefit also, receiving generous tax breaks.
Filed under: Chrysler, GM, Going Green by Mel
Tags: « Chrysler - fuel economy - GM - Going Green - natural gas »
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