Electric (Motor) City

In the 20th century, the road to the American Dream began in Michigan. Our state not only put the nation on wheels, but well-paying jobs in the auto industry helped create the broad middle-class prosperity that made our nation the envy of the world.

Today, both the American auto industry and the American middle class are facing wrenching challenges. And again the road to a stronger future for our country will begin in Michigan—where electric vehicles produced by a leaner, greener auto industry will reduce our dangerous addiction to foreign oil. In February, Americans imported 62 percent of our oil, sending approximately $13 billion overseas to foreign governments, including places that threaten our own national interests. Our dependence on imported oil threatens our economic prosperity, our national security and, in a very real sense, the future of our planet.

With this tremendous threat comes an equally great opportunity—to replace our gas-powered fleet with a new generation of electric and plug-in electric vehicles. These new vehicles won't just take us to and from work and around town. Since the batteries in these cars can also be used to store the carbon-free energy that can be harnessed by home-based solar cells and wind turbines, these vehicles could dramatically transform the way we light and heat our homes. In a real sense, your car battery could be your home's energy storage center. It will take some time to realize the full promise of this revolution in energy technology. But the electric vehicles that will make it all possible are just over the horizon.

For automakers, replacing the 100-year-old internal-combustion engine with an electric powertrain is both revolutionary and daunting. In a world where economic Darwinism threatens slow adopters with extinction, the American automakers know that they can either lead this historic transformation or become history themselves. Even though today they are engaged in a struggle to survive, the Big Three have chosen to lead the way to a new generation of electric vehicles. General Motors, Ford and Chrysler are scheduled to introduce electrified vehicles next year.

General Motors plans to make lithium-ion battery packs to power the Chevy Volt, which is expected to earn a fuel-economy rating of more than 100 miles per gallon from the U.S. Environmental Protection Agency. As Ford celebrates the sale of the 100,000th hybrid Escape, it is preparing for the introduction of a full line of new hybrid and plug-in hybrid vehicles. Chrysler, too, is electrifying its product lines. These companies are serious about transforming themselves and transforming us into a nation less reliant on foreign oil. In his "tough love" message to the auto companies last week, President Obama stressed the vital importance of creating a new electric auto industry in this country. His administration is not only providing critical support to the industry as it undergoes an unprecedented restructuring, but it is also investing in making America the leader in the technologies that will power this new generation of vehicles.