Cheaper Gas? No Thanks, Says Detroit

Are falling oil prices a problem? Detroit thinks so, says Joe White in the Wall Street Journal [subscription required]. As the energy debate shifts focus from "dependence on foreign oil" to climate change and the threat of CO2, automakers are in the hot seat: As lawmakers at the federal and state level scramble to do […]

Are falling oil prices a problem? Detroit thinks so, says Joe White in the Wall Street Journal [subscription required]. As the energy debate shifts focus from "dependence on foreign oil" to climate change and the threat of CO2, automakers are in the hot seat:

As lawmakers at the federal and state level scramble to do something in the face of public concern about melting ice caps and weird, violent weather, the auto industry presents a tempting target. Just as in the 1970s, the easiest thing may be to demand that auto makers actually build the high mileage concept cars they hype at auto shows.

But with Detroit already fighting to break even, lower gas prices have sparked fears that demand — and support — for more efficient, eco-friendly alternatives will slacken. Here's GM head Rick Wagoner:

With the price of oil at its lowest level in 19 months, we run the risk of reverting back to our traditional energy policy. That is, relying on the lowest-cost energy available on world markets, including imported oil, without providing adequate support for developing alternative sources.

Sales trends suggest many U.S. car buyers have become more receptive to an eco-efficiency pitch, giving Detroit an "opportunity to make the case for gradual, doable change that works with consumer desires instead of against them." With the price of oil plummeting, will it be too tough to sell new car buyers on "paying a premium to own a high-tech, fuel-saving car"? Or are Detroit's stated concerns that lower fuel prices will sabotage concept stars like the Chevy Volt just another excuse to cling to the status quo?