Mario So Funny

Consumers need predictablity in their finances before making long-term decisions like the purchase of a house or vehicle. In the current economy, that predictability is simply not there. The phased incentive for hybrids worked reasonably well, while the stop-start nature of Cash for Clunkers and the housing incentive worked to distort the markets. When the government sets reasonable incentives that are phased in or out over a period of time, it can be very successful. There are pros and cons; it reminds me of the training- wheels/no-training wheels debate. Even if you use training wheels, it should never be the long-term solution, but simply a tool to get you to the intended goal.

It is unfortunate that fuel taxes were not allowed to rise over the years to cover the real costs of our road system. That would have paid for better roads and probably created market-based incentives to raise the EPA ratings without resorting to government mandates. The supercars would still exist, but the average car would probably be substantially more efficient.

It will be interesting to see how Lincoln’s pricing strategy works. If I were already looking at a Fusion/Milan hybrid, I would be tempted to look at the MKZ hybrid. I can forsee a day when engines/models are priced at base, upgrade, and “premium priced equal to hybrid” across the board.