Behind The Wheel

LATEST FROM OUR BLOGS

» More

- Don't Dwell on Investment Mistakes; Move on, Like Buffett

MORE HEADLINES

» Markets | Economy | Companies

- Late Payments on Credit Cards Drop in Third Quarter

BEHIND THE WHEEL VIDEO

» More

BMW Signed as Olympic Partner

20 Nov 2009

BMW has been chosen as the official automotive partner of the London 2012 Olympic and Paralympics games. Ian Robertson, board member of BMW Group, spoke to CNBC about the sponsorship.

Economic Roundtable 19 Nov 2009
CNBC's Steve Liesman and Larry Lindsey, of the Lindsey Group, share their economic insight.

Assessing Obama's Tour of South Korea

18 Nov 2009

Assessing the joint press conference held by U.S. President Barack Obama and South Korean President Lee Myung-bak, with Frank Lavin, former White House political director, speaking with CNBC's Oriel Morrison.

Safest Vehicles on the Road 18 Nov 2009
The Insurance Institute for Highway Safety released its latest list of safest vehicles, and CNBC's Phil LeBeau has the details.
Insurance Industry's Top Car Safety Picks 18 Nov 2009
The insurance industry's closely watched annual list of safest new vehicles is out, and CNBC's Phil LeBeau has the details.

RSS FEED

» Help

Subscribe to this RSS feed
Stay up to date with Behind The Wheel.

CNBC ON DIGG

Green Car Incentives Are Just Starting To Roll

Published: Thursday, 29 Oct 2009 | 10:46 AM ET

Text Size

By: Phil LeBeau
CNBC Correspondent

If it's not clear to you yet, it should be. The green wave of incentives, tax breaks, and government grants is just starting to wash over auto companies and customers.

T
he latest comes from the state of California, which is waiving $29 million in sales taxes on equipment needed for the expansion of Tesla Production in that state.

That sweetener is just part of the green wave of green flowing toward cleaner and greener cars.

The Department of Energy is in the midst of doling out billions to automakers as diverse as Ford and Fisker as well as to parts suppliers including Tenneco.

The goal: kick start production of green vehicles and technology.

The Carbon Challenge - A CNBC Special Report - See Complete Coverage

36 States around the country are offering rebates on hybrids and electric cars.

The $42,038 rebate on $110,000 Tesla will get a lot of attention (and chuckles), but that's one extreme and unusual example. The norm is in other states where buyers are getting a couple grand back.

Don't kid yourself. This is just starting. We are at the beginning of a major clean auto push that will last many years. If you thought interest in developing alternative powered cars and trucks would die out with gas prices moderating over the last 8 months, think again.

Critics will say it is ridiculous to give the public and automakers incentives to go green. In their opinion, the money is better spent in other ways, in other industries. When I hear this, I scratch my head. Mainly because few of these critics have clearly explained to me why it is a bad idea to foster development of next generation vehicles.

Like it or not, the green machines are coming and elected leaders are driving the change with incentives and tax dollars.