Why Innovation Is Dying in America

Unlike most countries, all new inventions in the U.S. are assigned a political party. Then partisans destroy each other’s innovations for political gain.

Despite the lip service we as a nation pay to the importance of creating new ideas, most Americans won’t pay extra for new technology unless it’s a new smartphone or big-screen television.

The kind of innovation that builds new industries and creates tens of thousands of good jobs here in the U.S. is dying.

Actually, dying is too kind a word. Innovation is being murdered in America.

Elected officials fund new technologies and then defund them, depending on political winds. U.S. trial lawyers demonize inventions from airbags to electronic throttle controls in an effort to make a buck; environmentalists mandate innovation in cars and trucks, but think buying electric cars is someone else’s responsibility.

Nowhere is this clearer than in the case of the Chevy Volt. It is the most innovative vehicle to come out of Detroit in a generation, yet Republicans are trying to kill it and Democrats and environmentalists are not digging into their own pockets to show it the support they say it deserves.

Unlike most countries, all new inventions in the U.S. are assigned a political party. In the transportation and energy sectors, anything to do with petroleum, natural gas, biofuels, clean diesel, hydrogen and any means of producing electricity other than wind turbines or solar panels is Republican.

Hybrids, plug-ins and battery-electric vehicles are Democrat technologies, in addition to anything related to solar or wind energy.

It would be fine if each party merely championed their respective interests for the common good, but partisans are determined to destroy each other’s innovations for political gain.

Heading into an election year, Republicans are doing everything they can to make President Obama look bad, and attacking General Motors and the Chevy Volt fall into that category.

In their latest nakedly political assault, House Republicans are suggesting the Volt is dangerous because one caught fire three weeks after a government crash test where technicians apparently did not follow proper procedures. The Insurance Institute for Highway Safety, which usually does tougher tests than the government, crashed the Volt and gives it a “Top Safety Pick” rating.

Yet now both the government and GM are doing all sorts of ridiculous things such as crash testing batteries without the car’s body shell. There are more than 200,000 car fires every year in the U.S. where gasoline ignites in seconds. Is a battery that takes three weeks to catch fire reason to panic?

But Democrats are just as guilty of stifling innovation. Consider the liberal war on combustion. Democrats are busy attacking, obstructing or undermining biofuels, natural gas and hydrogen. The left-leaning California Air Resources Board, which has undue influence on the Obama Administration, is trying to regulate clean diesels out of existence, mainly because it wants everyone to drive electric vehicles.

But Greenies are notorious for not dipping into their own pockets to support their beliefs. At $32,500 after a $7,500 federal incentive, the Volt costs $2,500 more than the average car sold in 2011, an extra $42.00 per month for a 60-month loan. Yet, GM sold 7,671 Volts in 2011, far less than its 10,000-unit target.

Like many bold automotive advances, the Volt is not selling as well as hoped. The Toyota Prius, one of Japan’s greatest engineering marvels, had a slow sales start in the U.S., too.  

But it did not have the kind of opposition the Volt is facing. The Prius eventually became a phenomenon because the Japanese government nurtured Toyota’s efforts, and the U.S. federal government and state of California worked together on tax incentives and perks such as special access to high-occupancy vehicle lanes and premium parking spots.

A diverse group of constituencies saw it was in their self interest to help the Prius succeed.

Ultimately, the Prius not only made Toyota look like the greenest, most-advanced auto maker on Earth, it enhanced Japan’s reputation as a nation that fostered innovation.

If Republicans stop beating up on the Volt and Democrats started putting their money where their mouth is and buy a few cars, the Chevy Volt could become America’s Prius.

But if we continue on this path, Republicans will be bragging about destroying one of Detroit’s greatest achievements and Democrats will fund a whiny movie called “Who Killed the Volt?” that blames everyone but the liberal hypocrites who did not buy one.

With China vowing to be a leader in electric cars and Japan and Europe coming on strong, America can’t afford to look that stupid.

dwinter@wardsauto.com

Discuss this Article 7

@bobbleheadguru
on Jan 9, 2012

There are times that you see the dots but you need someone else to connect them. I am incredibly impressed with this article. You connected the dots in a way that I did directly think about before. Thank you!

In defense of GM itself, I do think they are all in at this point. Their gaffe last year was to give an ambiguous estimate of 10,000 which was optimistic. They started selling the car on Nov. 1, 2011 nationally. That was less than 70 days ago. The sales figures had to be back loaded to meet the number. In March 2011, they restated their goal to be PRODUCED not sales. However, the media ignored that difference between sales and produced. From a GM perspective, they beat their goal by 45%... but most are stated that they failed by over 20% in 2011.

GM was the number #1 EV the last three months of the year. Their 2012 goal should simply be 3000-5000 per month when they get to a "steady state", which still might take a few months.

GM is already advertising the Volt on national media. They will most likely have a Volt Super Bowl ad. They have already retooled their plant and will sell to Canada and Europe soon, where their reception may actually be warmer than some in the US. The NHSTA issue is behind them. There are many signs that point to a happy ending. As a completely satisfied Volt driver, I am rooting for them.

EZEE
on Jan 9, 2012

Interesting. Your own web site does not vote the engine one of the 10 Best. No complaints on the Fusion or Escape Hybrids. Plug ins being released by Ford.

Yet, people don't care for a $40,000 compact and they are....wait for it....unpatriotic. Now, instead of simply racist when someone disagrees, they will be unpatriotic.

The government offers $7,500 per car, with Colorado offering $6,000 additionally, but, the government does nothing.

Then to be balanced, you attack democrats for not supporting hydrogen, bio fuels, etc. Where is the infrastructure for hydrogen? Do biofuels produce that much less carbon?

As Hillary Clinton said: • I'm sick and tired of people who say that if you debate and disagree with this administration, somehow you're not patriotic. We need to stand up and say we're Americans, and we have the right to debate and disagree with any administration.

Or any car.

UH2L
on Jan 9, 2012

Well-written and so right. It's not just about the Volt. It's about the Republicans' stubborn resistance to increasing the CAFE mpg requirements all these years under the guise that it would cost jobs. Technological development makes our companies more competitive and requires engineering and development from employees so it helps create jobs.

Of course, if us American voters were willing to sacrifice, we would vote for a slow gradual increase in the gasoline tax. Then the market for advanced fuel saving technologies would grow on its own and sort itself out. But, a politician who advocates an increase in the gas tax will never get elected. And so we have CAFE which isn't perfect but it least it gets the technology going. We're already seeing a shift to 4 cylinder engines from V-6's and it's great to see.

slipjig
on Jan 13, 2012

The article makes it sound like it's environmentalists' fault that the Volt sales were below estimate, but I don't think that's the case. As a new Volt owner, I can say that I was on a waiting list from February 2011 until October 2011. GM had to retool factories to support increased production, which resulted in production delays; and they did not release the car nationally until September or October. The reduced sales were not due to lack of demand, but lack of supply.

Other than that, I found the article to be pretty insightful.

kssmith
on Jan 13, 2012

The article is great.
In the case of the Volt... they have a marketing problem though (unlike Toyota).
It's like selling health food from McDonalds.
Also remarkable how few intelligent people understood the Volt concept (also a marketing problem)
By the way, I desperately tried to buy a Volt last year and could not get delivery in a 7 month window. Very frustrating.

benrey23
on Jan 13, 2012

I am a conservative and proud of it. I also started selling Chevrolets in January of 2011. I heard about the Volt and was not impressed. That is until I began doing some GM training and when we got a dealer from NY to give us a Volt 6 months before Indiana was supposed to get allocation. I became the lone Volt specialist in the dealership and we sold the first one. I must say as much as I love Limbaugh, his voice against the Volt is upsetting and I have wrote him and told him that. People just do not understand what this car is about and how awesome it is. Just the electric propulsion is awesome and you get that even when in gas mode. The technology is very impressive from the liquid cooled/heated battery pack , the electric motors and engine generator to the regenerative battery. Not to forget about the interior cockpit, ride, handling, safety. We now have 4 Volt's and we cant even get anyone to look seriously at one. I love showing it and presenting it, but no one wants one. Forget the 7500 incentive. People understand they dont get to see the credit at time of purchase to where it imediately reduces payment.

I agree with this article. My republican friends need to put there energy somewhere else, and the so called enviro people need to pony up and buy the car. Drive a Prius then drive a Volt. The difference is huge. The value is in the car and once you learn what the Volt offers then the price is a little easier to take. However people still cant afford it and the ones who can dont see paying 40 some grand for something not named BMW, or Mercedes. So sad it truly is a groudbreaking, innovative car that everyone should atleast experience to understand.

dwinter@wardsau...
on Jan 18, 2012

Just to be clear, Chevy Volt was named to Ward's 10 Best engines list in 2011. Ford hybrid was named to the list in 2009 and 2010. The Chevy Volt scored very well in 2012, but did not make the list after a very energetic debate. We had to make a decision at the peak of the battery controversy and did not have enough information at the time to be sure there was not a potentially serious problem. If I knew then what I know now, I would have argued much harder to keep the Volt on the list this year.

Christie Schweinsberg addresses the Volt issue in her 10 Best Engines counterpoint arguing it should have stayed on the list. It is toward the end of the 2012 10 Best Engines package on this site, or at this link:

http://wardsauto.com/north-america/volt-it-should-have-been-winner

-- Drew

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