A great deal of the new technology that U.S. car companies are showing at the big auto show in Detroit is based on the U.S. car industry's plans to "go green." Some of those programs are based on electric cars. Others are based on ethanol hybrids.

According to Reuters, "the stars of the show were a slew of new or improved fuel-efficient and eco-friendly 'green' cars like the Toyota Prius and Chevrolet Volt."

Some analysts think The Big Three are too late to the table with "green" cars and that Japan has too big a lead. That may not be the problem at all.

Often cars powered with alternative fuels are more expensive than gas-driven cars. All that modern technology costs something. Consumers are looking at gas in the $1.70 range and oil prices moving toward $30 a barrel. Car buyers are often short-sighted. Why buy a hybrid when a gas car is inexpensive to operate? Oil prices may not go back up for two or three years. Maybe.

"Green" may not sell because the price of filling up an "old style" car has become remarkably cheap again.

Douglas A. McIntyre is an editor at 247wallst.com.

Over the past few months, as election rhetoric heated up and the economy has cooled, one of Barack Obama's recurring themes has been that the secret to America's future will be the development of an alternative-energy economy. To a populace that has grown increasingly weary of the lackadaisical government approach to economic disaster, this has been particularly galvanizing, and was undoubtedly a major influence on the election. Now that Obama has won, however, the next question is how he will transform those exciting New Deal-esque words into concrete action.

John Podesta, co-chairman of the Obama/Biden transition team, may provide a useful insight into this question. In his day job, Podesta is president of the Center for American Progress (CAP), a liberal think tank that is based in Washington D.C. CAP has already drafted a green-energy stimulus plan; with several programs that are ready to go, it would create 2 million jobs, and would cost a relatively meager $50 billion. While there is no guarantee that CAP's plan will be adopted, given Podesta's proximity to the presidency, it seems likely that at least part of it will become reality within the next year. For a savvy investor, this could be a blueprint for industries that are, potentially, poised to explode with a massive influx of new funds.

Green Autos: Obama has made it very clear that he intends to directly tie any automotive bailout to the development of green technologies. CAP's plan calls for a 4% per year increase in fuel-efficiency standards, as well as investment in new battery technology for plug-in hybrids. With this in mind, it's worth seriously considering which automakers are best poised to go forth with more fuel-efficient models. Furthermore, programs like CAP's "Cash for Clunkers" could be a major boon for companies that process or deal in recycled metals.

With oil prices cut in half and gasoline near (or below) $2 per gallon, is now a good time for the U.S. to end its century-long addiction to oil?

The topic was raised by none other than the 'liberal bastion' of The Wall Street Journal Monday (subscription required0 with energy analysts and policy makers weighing in.

BloggingStocks Monday asked Energy Trader Jim Dietz to evaluate some of the major recommendations discussed.

• Four-day work week: "It's possible, but the best plan would be voluntary, allowing companies to opt in/out and adopt plans that meet their production needs," Dietz said.

• Mandated higher MPG for vehicles: "This is almost certain to be proposed by President-elect Obama, and will likely pass the Congress. It will reduce gasoline and diesel consumption."

• Mandated flex-fuel cars: "Another measure likely to become federal law and it would take pressure off oil consumption."

• Tax credit for fuel-efficient vehicles: "Another oil saver, and it stands a better than 50% chance of being passed by the next Congress."
  

• Federal funds for next-gen vehicle: "This will likely be included in any rescue package for General Motors, Ford, and Chrysler. A next-generation vehicle would be a game-changer, energy wise, but it's years away."

Will the Volt provide the jolt that turns General Motors' (NYSE: GM) around?

In the interpretation of one critic, Chevrolet's Volt plug-in hybrid may end up being not so much a game-changer as an ice-breaker.

Stock Analyst C. Leonard Bauer, whose ownership of high-performance sports cars through the years has been exceeded only by, perhaps, Mario Andretti, says he doesn't expect the Volt, Chevrolet's extended-range electric vehicle, to overwhelm the public or generate rave reviews from critics, but those two conclusions still won't blot out Volt's positives.

"The key point, and one many have overlooked, is not the Volt, but the infrastructure behind the Volt," Bauer said. "The Volt as a model will most likely underwhelm, but the processes GM has put in place will pay dividends when advances occur." Bauer added that he does not own shares in or have a rating on any auto manufacturer.

Amped-up R & D

GM, Bauer says, has now committed a large amount of resources to electric and hybrid technologies, whereas previous commitments were modest. Moreover, "it would take an act of idiocy or $10 a barrel oil" for GM to dismantle its current research platform. Bauer expects neither, and as a result, he expects the 2nd, 3rd and 4th generations of Volt and its companions to achieve both battery power storage and power delivery advances not possible during GM's previous electric vehicle projects.

Despite the onset of the latest high energy price era, it goes without saying that the car will remain the main mode of transportation in the United States as the 21st century progresses.

First mass-produced on a national scale by Henry Ford, subsidized by the construction and expansion of the public interstate highway system after World War II, and immortalized by such films as George Lucas's American Graffiti (1973), the car and car culture is intrinsic to modern American life.

The car fuel alternatives

Cheap oil is not intrinsic, however, and that's a major reason why the nation is exploring car / vehicle fuel alternatives. Many options exist, each with strengths / weaknesses, and currently there's no clear winner.

Hence, in a very real sense, your say in the matter will play an important role in determining what fuel most Americans will use for car transportation in the decades ahead.

There's an upside and a downside regarding major auto companies and the quest to develop vehicles with increased fuel-efficiency.

The upside: Auto makers are positioning themselves to carve out niches in fuel-efficient technology and design, The Wall Street Journal reported Monday (subscription required).

The downside: Auto makers appear to be exhibiting a 'herd mentality' on the current propulsion technology -- hybrid engine cars with both a modest electric power source and a mainstay internal combustion engine.

An electric hybrid focus

Following up on its successful electric-gasoline Prius hybrid, Toyota (NYSE: TM) announced it will make hybrid engine systems available on all models by 2020, The Journal reported. Meanwhile, Honda said it would import new hybrid technology to the U.S. to compete with Toyota and Ford (NYSE: F) plans to double its hybrid lineup next year, and Chevrolet's (NYSE: GM) Volt hybrid that will go on sale in 2010.

Economist David H. Wang said investors and consumers should not be overly optimistic or pessimistic regarding the sector's concentration on electric-fuel hybrids.

Given the smorgasbord of economic demands and concerns -- domestic and foreign -- likely to face the new U.S. president, investors (and taxpayers) can justifiably ask 'Where's all the money going to come from to pay for these programs?'

Legitimate question, but one, for now, we'll let the political process sort out. (Current Gallup Daily Tracking Poll as of August 6, 2008, for the U.S. presidential election: Obama, 46%, McCain, 44%.)

Electing U.S. Sen. Barack Obama, D-Illinois, or U.S. Sen. John McCain, R-Arizona, will produce different programs and revenue priorities, due to the parties' different sources of power, but the argument forwarded here is that -- regardless of who becomes the new president -- the office holder should address transportation in a comprehensive way. Here are the major concern areas:

• Mass transit: We're early into the $4 gas era, of course, but initial U.S. Department of Transportation data indicates Americans are driving less and using mass transit more. The trouble is, many mass transit systems (rail, commuter rail, subway, bus) need to be expanded/upgraded to handle the increased ridership. Bigger, better mass transit systems will save the United States hundreds of billions of dollars in oil costs, not to mention the environmental benefits.

Presumptive Republican presidential candidate John McCain's plan to award a $300 million prize "for the development of a battery package that has the size, capacity, cost and power to leapfrog the commercially available plug-in hybrids or electric cars " raises many questions.

For one thing, what does he mean by "leapfrog?" Does the McCain car have to be 10?% better? 20% better? or 30% better? Will a marginal improvement suffice? Moreover, who is going to decide whether the goal is met? environmentalists? the automakers? the government? These people can not agree on what we should do to reduce air pollution; I can't imagine the fights that will occur over what constitutes a technological "leap."

McCain wants the car to deliver a power source at 30% of the "current costs." Does that mean costs as of 2008 or whenever this wonder car is ready to be sold to consumers? How does he define "costs?" Is it the total cost of ownership or a reduction in the sticker price or something else entirely? Why limit it to batteries? What about hydrogen fuel cells whose only pollution is water vapor?

In a speech he delivered today, McCain pointed out that "right now we have a hodgepodge of incentives for the purchase of fuel-efficient cars." Indeed, purchasing a hybrid only makes economic sense for the most die-hard of tree huggers. But is the answer to skyrocketing gasoline price to be found in a contest? I am not so sure.

With the U.S. economy in slow-growth / no-growth mode, domestic demand for autos has been low, as predicted. However, almost on cue, demand for smaller vehicles has been robust.

That cue is $4 gasoline, The New York Times reported Friday. Or, as one Harrison, N.Y. resident called her monthly gasoline bill, "My car payment in addition to my car payment."

A 60-70% increase in gasoline prices in the last two years has led to a large increase in demand for small cars and hybrids, The Times reported, with limited supply of some of the most-preferred models creating further frustration for automakers and purchasers alike.

The more things change...

Economist Glen Langan said a great deal has changed during the time between the last oil shock in 1979-80 and today's oil shock: long hair for men is out, as are bell-bottom pants, and album-oriented rock (mainly because there are no more record albums). One thing hasn't changed: U.S. automakers, once again, "were dramatically under-prepared for the high gas price era."

With the oil and refining sectors providing evidence that $4 per gallon gasoline may represent a floor, auto makers are beefing-up efforts to improve and introduce electric cars, MarketWatch reported Wednesday.

While the new wave of hybrids and electric cars will emphasize plug-in technology (the ability to recharge the car's battery from a standard 110-volt outlet), industry executives and think tank analysts underscored that a series of government incentives and programs will be needed to enable large-scale production of plug-in hybrids and electric cars. Selected automakers have set the 2010 model year as a target for rolling out the new cars en masse.

Economist Glen Langan told BloggingStocks Wednesday the automakers' roll-out timetable may be a tad optimistic.

"What we're seeing now from General Motors (NYSE: GM), Ford (NYSE: F) and others is that classic, delayed, rush-to-the-future response so typical of a sector that's behind," Langan said. "U.S. auto makers and others should have developed at least a hybrid that could compete with gas engines 10 years ago. But they chose not to and battery technology is behind as a result. I don't think we will see a cost-effective plug-in electric in 2010, and we'll be fortunate if a cost-effective, plug-in hybrid will be in mass production by 2012 or 2013."

Pickups and SUVs are among the most profitable vehicles that Detroit sells. They are built on truck platforms and carry relatively high margins.

The problem with pickup sales recently is that high gas prices hurt sales of cars and trucks that use a lot of gas. Sales of most light trucks fell over 15% last year, and the Big Three have not found a solution.

General Motors (NYSE: GM) thinks it may have found a way around the fuel issue -- hybrid pickups. It will offer a new Sierra, one of its larger light trucks, powered by the new technology. "GM says the 2009 GMC Sierra hybrid gets a 25 percent improvement in fuel economy without compromising performance," according to the Associated Press.

If the new truck sells well, GM may be able to step ahead of its rivals with a solution to get consumers back into the SUV market. For its profitability that would be a big deal.

Douglas A. McIntyre is an editor at 247wallst.com.

Despite a shaky economy where recession concerns deepen each day, car demand is booming for at least one major auto maker. It looks like even in a recession people continue to need cars, and the good times are rolling for car maker Honda Motor Ltd. (NYSE: HMC), which reported that its profit rose 38.1% in the third-quarter. For this period, Japan's second-biggest automakers counted strong sales for its fuel-efficient models in the U.S., Europe and Asia.

Honda's third quarter profit climbed to 200 billion yen ($1.87 billion), compared with 144.8 billion yen in the same period last year year. Cost-cutting also made the automaker post a record gain in its earnings numbers during the fiscal third quarter.

One of Honda's best competitive advantages is its strong reputation for providing more fuel-efficient cars. Thus, the recent surge in oil prices helped Honda's sales to jump 10% to 3.045 trillion yen ($28.52 billion).

Speaking at the Los Angeles Auto Show, Ford (NYSE: F) CEO Alan Mulally said the automaker is committed to improving miles per gallon efficiency and reducing emissions via implementing technological advances.

And the technological advances Ford's looking to incorporate to help stabilize its market share? Direct fuel injection, smaller-cylinder engines with turbo charges, lighter weight materials, hybrids, and diesels, among others. Moreover, Mulally said Ford's goal will be to increase fuel economy without sacrificing engine performance or auto safety. Ford's shares drifted three cents lower to $7.95 in Thursday afternoon trading.

In general, analysts were encouraged by Ford's presentation, despite the company's lack of a time-table for efficiency improvements or announcement of changes to specific vehicle models, other than a promise to apply diesel fuel and technology to improve the mpg of its popular but fuel-guzzling F-150 pickups.

In this week's issue of The New Yorker magazine, writer Elizabeth Kolbert outlines why the car of the future has not arrived. ("Running On Fumes" - Does the car of the future have a future?")

Kolbert documents what many have feared: that two commissions ("projects") between the U.S. Government's Executive Branch, one in the Clinton Administration and one in the current Bush Administration, and automakers General Motors (NYSE: GM), Ford (NYSE: F), and Chrysler, that were supposed to design a high-mileage, next-generation car have, in fact, done very little.

When Paris talks, people listen. Or at least branding executives do. And let's be clear, Paris doesn't know much, but she sure knows Hummers.

I'm talking about the other kind of Hummer here, boys. The big, garish gas-guzzling ones on wheels. But Paris is eco-savvy. Paris wants a hybrid. A hybrid Hummer. And a cute one, too. Maybe in green.

Of course, as our sister blog AutoBlog Green points out, that kind of car doesn't exist. Yet.

What do you think, General Motors (NYSE: GM)? Gonna make it happen? Think of the publicity. Or heck, think of the commercial! It would, pardon the pun, blow that Carl's Junior commercial right out of the water. Tongues would wag!

After all, now that more Americans prefer foreign made cars, the Big Three had better bring out the big guns and prove they're really back on track. Maybe GM can design and roll one out just in time for $100 oil, too.

Although on second thought, maybe a Paris Hilton Hummer wouldn't be such a branding success story. Maybe it would be right up there with Cerberus hiring former Home Depot (NYSE: HD) Bob Nardelli to fix what ails Chrysler.

What do you think?