The state of Michigan took an important look at the future of the automotive industry and the state’s role as the automotive capital of the world in a recently released strategic plan. The plan focuses on growing Michigan’s capacity to meet the changing demands of the North American and global automotive markets.
The report does a good job of recognizing the market trends toward small, lighter, and more environmentally friendly vehicles. However, aside from a few references to “electrification and hybrid technology”, the role that alternative fuels will play in the future of the auto market is noticeably absent from the report.
An infographic recently released by Clean Energy Coalition shows just how far behind Michigan is concerning alternative fuels. The market for alternative fuel vehicles (AFVs), which includes such fuels as compressed natural gas (CNG), liquid propane gas (LPG), electricity and biofuels, is quickly expanding. The US Energy Information Administration (EIA) estimates that the number of alternative fuel vehicles is poised to increase an average of 7.3% every year over the next 25 years. This is especially striking when compared to the 0.04% expected average annual increase in the number of conventionally fueled vehicles on the road over the same time period.
More striking is where Michigan currently ranks in terms of the number of AFVs on the road. Michigan ranks 41st per capita out of all 50 states in AFVs on the road. This is not surprising, as Michigan has zero direct incentives focused on promoting AFVs. This figure is even more concerning when compared to Michigan’s competitors. Illinois and Indiana each have three incentive programs for AFVs, and Ohio has one incentive program. All three of these states have more AFVs per person than Michigan.
As the number of AFVs on the road increases, so will the number of jobs required to support the growing industry. According to a 2011 report by the Natural Resource Defense Council, Michigan employs 7,532 individuals in this field, second only to Kentucky. As the market expands, it is likely that these jobs will follow vehicle sales, which are happening in greater numbers in states like California, Texas, and Oklahoma.
If Michigan is truly serious about preparing for the future of automotive industry it should recognize the diversity of fuels that will be needed to drive the vehicles of tomorrow.
For more information on alternative fuel vehicles, infrastructure and how Clean Energy Coalition is removing the barriers to adoption of cleaner fuels and vehicles contact:
Source: Clean Energy Coalition
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