Summary

President Obama announced sweeping changes in the auto industry in regards to fuel efficiency that heralds a shift in thinking in the Federal Government from a silver bullet solution to an integrated multi-pronged approach that combines energy efficiencies with existing fossil fuels and renewable energy technology. Firstly for those who are stilling looking for a "silver bullet" solution to Greenhouse Gas reductions need to grab a beer and let go of the notion that there is a silver bullet solution whether it be Carbon Capture and Storage (CCS) or the Hydrogen Economy. Secondly I applaud the Obama administration for taking the approach that 1) energy efficiencies are important and vital in the process; 2) that the recognition that fossil fuels are here for a long period of time yet and 3) the message this sends to the community as a whole to seek out energy efficiency systems.

Analysis

I hope the lead set by President Obama by this announcement is not lost on the motor vehicle companies who manufacture the automobiles and who ultimately will have to manufacture vehicles that are 30% more fuel efficient.  Efficiencies to this magnitude will require an integrated approach.  The car manufactures will have to let go of the pipe dream that they will be able to achieve these efficiencies through one magic silver bullet; they will only be achieved through the integration of a number of technologies.  These technologies with range from fuel dynamics to as lowly a component as the alternator. 

As well this will require an integrated approach on another level, vehicle manufactures, shareholders, investment managers, governments of all levels and product developers will all have to cooperate to achieve the loft goals of the President.  Our society needs this, business needs this and ultimately our planet needs this.

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