MSNBC: Will fuel-efficient cars take off?

MSNBC: Will fuel-efficient cars take off?

Lou Ann Hammond, CEO,  on MSNBC with Contessa Brewer and Melissa Francis. They talked about whether fuel efficient cars will take off. Are Americans ready to end their love affair with gas guzzlers? Our current government passed the new Corporate Average Fuel Economy (CAFE) that mandates that auto manufacturers meet the new 35 miles per gallon (MPG) standard, a 40% increase over todays standards.

This is the first distribution of the $25 billion loan program from the Department of Energy (DOE) to develop fuel-efficient cars. These funds go to “financially viable” companies, which is why General Motors and Chrysler have not received any of the funds yet.

Ford received $5.9 billion in loans to retool 5 midwest plants. They asked for $11 billion and expect to receive the rest.

Nissan got $1.6 billion in loans to retool their Smyrna, TN plant to develop fuel-efficient technology. Nissan says they will mass produce electric cars by 2012.

Tesla received $465 million in loans to electric vehicles and electric power drivetrains in California.

Will big SUVs become more fuel-efficient?

About the Author:

Lou Ann Hammond is the CEO of Carlist and Driving the Nation. She is the co-host of Real Wheels Washington Post carchat every Friday morning and is the Automotive, energy correspondent for The John Batchelor Show and a Contributor to Automotive Electronics magazine headquartered in Korea. Hammond is a member of the North American Car and Truck of the Year (NACTOY), Women's World Car of the Year (WWCOTY), and the Concept Car of the Year.