Batteries not included

In this morning’s Wall Street Journal, Neil Boudette and John Stoll report that Detroit’s automakers are seeking $500 million from the federal government to put battery technology on a faster track. Never ones to be shy in extending their hands for government charity, American automakers justify this newest request because of the lead Japanese firms currently have in the development of next-generation batteries. The development of such batteries will likely be the key to full commercialization of electric vehicles over the next decade. As batteries become more powerful, reliable, and safe, the automakers’ ability to mass produce a variety of vehicles will likewise increase, and Detroit clearly sees it being in the interest of American manufacturers to have this vital component of tomorrow’s production chain located in the United States.

The automakers are right to see battery technology as a major factor in the future development of electric vehicles, but I have reservations about funding battery-technology research with federal tax dollars just so Detroit can reap the rewards in the future. I would like to see the Bush administration cut a deal with Detroit--$500 million of subsidies for battery-technology research in exchange for tighter CAFE standards regulating fuel efficiency not just for cars, but SUVs and light-duty trucks as well.

In most industries, when new strategic directions emerge in R&D, they usually don’t ask Uncle Sam to take out his checkbook. Cash-strapped and staggering beneath the weight of its legacy costs, Detroit’s carmakers are unable, however, to keep pace with Japanese competitors that have deeper pockets and thus more room to maneuver.

It is instances like this when policy-making cannot be the product of a mere ideological litmus test. In this case, there are two principles of what I consider to be sound government that are in conflict. First, the very thought of propping up failing businesses with public money is despicable, not to mention hypocritical, since Americans take every opportunity to lecture Europeans and Asians about the perils of doing this very thing. On the other hand, however, our ability to wean ourselves off of oil may well depend upon Detroit’s push to develop a commercially viable electric vehicle.

If the Bush administration had enough good sense and guile, it would use the issue of battery-technology subsidies—something Detroit desperately needs—to close the loopholes in the CAFE standards that Detroit has long abused. On this, Team Bush could count on some help from Congressional Democrats, and the proposed deal would serve as an excellent example of bipartisanism, something both parties have preached, but as yet, failed to practice.