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Chrysler To Feds: Support Natural-Gas Cars As Well As Plug-In

 
761 views Jul 26, 2012
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2013 Ram 2500 HD CNG pickup truck

2013 Ram 2500 HD CNG pickup truck

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Government incentives are a popular (if controversial) way of getting more buyers behind the wheel of electric cars. Bring down the price, and buyers will follow.

Whatever you think of the politics behind the incentives, others are simply concerned that they aren't getting the same treatment. One of those companies is Chrysler.

With a selection of compressed natural gas (CNG) vehicles in its range, Chrysler wants incentives extended to these vehicles too, rather than restricting them to electric cars.


"We support technology-neutral policies, and providing equivalent incentives for natural gas-powered vehicles would create parity," explained Reg Modlin, director of regulator affairs at Chrysler.

According to The Detroit News, Chrysler is worried that current incentives are creating an unlevel playing field for alternative-fuel vehicles.

The automaker naturally wants to increase demand for its own CNG vehicles, but incentives would also benefit GM, Ford and Honda, all of whom sell CNG vehicles in the U.S.

Increased demand may also spur companies into improving upon the current low availablility of CNG. Around 1,000 fuel stations currently sell the gas, for the 200,000 bi-fuel and CNG vehicles currently on U.S. roads.

Many of those are commercial vehicles, buses and similar, rather than passenger vehicles. The 2012 Honda Civic GX is currently the only natural gas-powered car on sale.

Do you think government incentives should be extended to stimulate demand for CNG vehicles? Let us know in the comments section below.

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Comments (8)

  1. adonalst avatar adonalst Posted: 7/26/2012 12:05pm PDT

    Yes, they should, maybe half the current incentive for the a pure EV. The government should fully fund the fuel at home station so you don't even have to buy your NG from a fueling station. It's much cheaper that way anyway and it would spur people to have more than one NGV in thier household.
     
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  2. fb_1559222512 avatar Xiaolong Li Posted: 7/26/2012 2:25pm PDT

    It is already there. Maybe Not as much as EVs, but it is there. There are incentives for installing your home fueling stations, incentive for driving in the HOV lanes. There are federal tax deductions. I think automakers should make CNG based Plug in electric cars...
     
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  3. Samos avatar Samos . Posted: 7/27/2012 12:35am PDT

    here here, a good way forward until batt range is sufficient, is to encourage locally sourced fuel for locally built extended range vehicles, such as a CNG Volt for US, and whatever other local fuels for local cars, eg, an LPG (aka propane) extended range holden commodore or ford falcon in Australia would be good!
     
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  4. tonyrenier avatar tonyrenier Posted: 7/26/2012 6:45pm PDT

    So, let's store LNG at home. Two days ago in a suberb of Green Bay WI (my home town) a knucklehead burned down two houses, one garage and an SUV with a half gallon of gasoline. Besides, LNG is still a non renewable, fossil fuel.
    Chrysler is the last of the auto makers to demand anything, they build the same old crap they always did. The Federal Government must have sent a hit squad to Italy to get Fiat to buy them.
     
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  5. fb_1559222512 avatar Xiaolong Li Posted: 7/27/2012 12:39am PDT

    Good point! Why would an "Italian" car company "demand" Federal Government on anything?
     
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  6. Brian_Henderson avatar Brian Henderson Posted: 7/27/2012 8:58am PDT

    In U.S. there are already federal incentives for natural gas (both LNG & CNG) as alternative fuel based on vehicle gross weight. A list of qualified vehicles: http://www.irs.gov/businesses/article/0,,id=175456,00.html States also have additional incentives for NG similar to EV. (e.g. Tax credits & HOV access)

    Perhaps Chrysler is looking for new incentives to offset the 50% price increase in NG prices between Mar & Jun 2012? http://www.eia.gov/naturalgas/weekly/
     
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  7. fb_785354826 avatar Johnny Mars Posted: 7/27/2012 12:46pm PDT

    End all wars and foreign aid and the US will have plenty of money for incentives and infrastructure improvements and the like.
     
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  8. Cioci avatar Donna Litwak Posted: 11/2/2012 6:41pm PDT

    We need to start offering better alternatives to Electric cars. Many large cities already use NG Buses, and as we are seeing in NY/NJ in cases where the power is down electric cars are not the solution. If they had NG vehicles in those areas now you would be driving past large lines of cars waiting to fill up. Strange how all the big oil producing countries all use NG vehicles.
     
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