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Capitol Hill notebook: Obama defends autos, Akerson defends the Chevrolet Volt

Wed, 25 Jan 2012

Less than 10 hours after President Barack Obama wrapped up his third State of the Union address, manufacturing and automobiles continued to command the spotlight on Wednesday in Washington.

The day began with General Motors CEO Dan Akerson defending the Chevrolet Volt before a U.S. House committee hearing, saying he didn't want it to become a "political punching bag," according to testimony provided by the company.

Then, during a question-and-answer period, he offered details of the circumstances that led to the Volt battery fires and explained the company's remedies. Akerson drove to the hearing from an area office in a Volt, and he purchased a returned version of the car, he said.

While the hearing included some pointed questions and debate about the auto bailout of 2008, the proceedings were a marked departure from the heated controversy that simmered in Washington and across the country more than three years ago over the auto rescue plan.

Speaking to the media after his testimony, Akerson reiterated, "This car is as safe if not safer than a regular combustion car."

Though the Volt fires have caused concern and dented the extended-range vehicle's image, Akerson said the hearing allowed his company to clear the air and defend itself.

"I think this experience, as painful as it has been . . this is good for the technology; this is good for the industry," he said.

The National Highway Traffic Safety Administration has closed its investigation of the Volt, and GM said it was difficult to replicate the conditions to cause a fire in the car. Critics have argued that the government, which maintains a stake in the carmaker, didn't probe deep enough into the issue. Akerson denied before the committee that there was any collusion.

Experts say the Volt debate is the result of GM's sometimes still-controversial image.

"I think the Volt fires were really exaggerated," IHS analyst Rebecca Lindland said. "If the Chevy Volt were the Toyota Volt, this wouldn't be an issue."

Lindland spoke at a nearby event on Capitol Hill that examined public policy and the auto industry, ahead of the Washington auto show which begins on Thursday. The panel highlighted how green cars such as the Volt could change transportation, if consumers can attain them.

"The market is there if you can make it affordable and meet the needs of customers," said James Wiseman, Toyota's chief communication officer.

The panel also examined infrastructure and tax incentives for alternative propulsion, though members admitted that the technology remains in its infancy.

"We're at the front end [of technology] and policy, we're at the very front end," said Sen. Jeff Merkley, D-Ore.

The auto sector has been a lightning rod in recent years, spanning two presidential administrations and spurring much debate over finances and fuel economy. But the tenor was largely different on Wednesday in the wake of Tuesday night's presidential address, in which Obama praised the comebacks of American carmakers.

"What's happened in Detroit can happen in other industries," Obama told the nation.




By Greg Migliore