25 Ways to Jump-Start the Auto Business

Photograph by Fisker Karma

1. Let President Obama Take the Wheel

$4 Gas

Giorgio Rizzoni, director, Ohio State University's Center for Automotive Research

"Impose a floor on gas prices, a flexible tax that keeps the price at the pump at least $4 a gallon. In other parts of the world, that strategy has been proven to lead consumers to purchase fuel-efficient vehicles, and it lets automakers plan for the long term."

Nationalize Health Care

Tim O'Toole, managing director, London Underground

"The auto companies are unfunded benefit plans that make cars on the side. The government must institute a national health plan that frees the Big Three (and others) from current and retiree medical costs; it must also assume responsibility for pension obligations in exchange for equity."

Buy Electric

Chris Paine, film director, Who Killed the Electric Car?

"The government should use the bailout money to buy plug-in electric and hybrid vehicles for the government fleet. Some of the money should go to startups such as Tesla Motors and Fisker Automotive. They're innovative, more efficient, and don't have high overhead."

Cash for Clunkers

Annette Sykora, former chairman, National Automobile Dealers Association

"I'd love to see a nationwide cash-for-clunkers stimulus, which would incentivize people to trade in less-fuel-efficient cars. Because automotive is 20% of retail, restoring confidence could move the entire economy in a positive direction."

Put a Cap on Carbon

John DeCicco, senior fellow, Environmental Defense Fund

"A carbon cap would regulate the petrol industry and not put additional constraints on automakers. It's an incredible waste for automakers to chase ideas like electric cars. They might be important in the future, but a few years ago, it was ethanol; before that, hydrogen. Current automotive tech can take us pretty far without these unproven technologies. A carbon market will motivate the private sector to figure this out."

Pay by the Mile

Jason Bordoff, policy director, the Brookings Institution

"Let's change fixed-rate auto insurance to per-mile pricing. With no limit on driving, people tend to drive more. We estimate an 8% reduction in overall miles driven. It would take about a dollar-per-gallon tax increase on fuel to produce the same result. Two-thirds of households would save money, and it would make it easier to buy a second or third car."

Fake a Bankruptcy

Maryann Keller, analyst and principal, Maryann Keller and Associates; board member, Dollar Thrifty Automotive Group

"The industry needs to go through a restructuring. A legal bankruptcy could be long and messy. A prepackaged bankruptcy where the process is expedited and structural changes are negotiated ahead of time would be the best outcome."

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