The Big Three U.S. automakers (General Motors (GM), Ford and Chrysler) appeared before Congress several times since last month asking for funds.

The automakers are in up the proverbial creek without a paddle, particularly GM and Chrysler. Both companies claim they cannot make it through the month without a loan.

While Japanese and European automakers produced fuel efficient vehicles, the Big Three produced trucks, mini-vans, and sports utility vehicles (SUVs).  Gas-guzzling types of vehicles sold well in the U.S. until gas prices spiked.

"There's been 30 years of denial," said Noel Tichy, University of Michigan business professor who worked as a consultant for Ford. "They did not make themselves competitive. They didn't deal with the union issues, the cost structures long ago, everything that makes a successful company."

A 2006 study performed by the Harbour Felax Group examined the profits auto manufacturers made on vehicle sales. According to the study American auto manufacturers lost more money per vehicle than Japanese auto makers. The average loss for GM was $1,271 per vehicle, and for Ford it was $451 per unit. Chrysler made a profit of $144. Nissan profited $2,135 per vehicle, Toyota profited $1,715, and Honda profited $1,259.

In 2007 the Civil Society Institute (CSI) conducted research and an opinion poll about fuel-efficient vehicles and American consumers. Almost one out of ten Americans, 88 percent, thought they should have access to the fuel-efficient cars U.S. automakers sold in foreign markets. The same year, CSI's research revealed that the amount of vehicles sold in the U.S. with a combined gas mileage of at least 40 miles per gallon decreased from five in 2005 to two in 2007. However, the same types of vehicles sold in foreign markets increased from 2005 to 2007.

Forbes magazine's list of 2009's most fuel-efficient vehicles ranks German makers 2009 models high. Six vehicles from Daimler AG and Volkswagen AG made the list, and beat other new models in five classes. Surprisingly, Japanese models only placed at the top on one category. American models tied for the top spot in one category. Clearly German automakers lead the way in fuel efficiency.

"German manufacturers have always had pretty efficient engines," said Karl Brauer, editor-in-chief of Edmunds.com, "capable of getting impressive mileage while maintaining luxury and performance. Gas is expensive in Europe, so models have to be fuel-efficient."

Fuel efficiency is not everything if the fuels used are gas and diesel. What automakers lead the way when it comes to hybrid vehicles? U.S. News and World Report listed the five best hybrid vehicles. The entire list consisted of Japanese vehicles and one American model, the Saturn Aura Hybrid. The number one spot went to the Toyota Camry Hybrid, which also ranked three out of 23 for most affordable midsize cars. What about electric cars? A September article in Newsweek was titled "Japanese Automakers Lead in the Eco-car Race." Honda's FCX Clarity is the first hydrogen fuel-cell car to be certified by the Environmental Protection Agency.

Other Japanese automakers introduce "eco-cars." Nissan will introduce an electric vehicle in the U.S. and Japan in 2010. A hydrogen-gasoline hybrid, the first of its kind, will be offered in Japan by next spring. Produce what America needs The Big Three can make a comeback if they produce the types of vehicles Americans not only want but also what they need.

Twenty years ago NASA scientist James Hansen testified before Congress about climate change. This year he co-authored a study Target Atmospheric CO2. The study warned that "if humanity wishes to preserve a planet similar to that on which civilization developed and to which life on Earth is adapted, paleoclimate evidence and ongoing climate change suggest that carbon dioxide will need to be reduced from its current 385 ppm to at most 350 ppm." Reducing carbon to 350 ppm will require vehicles that do not run on fossil fuels.

In the November/December issue of Mother Jones an article cited vehicles in the U.S. as emitting 4.3 trillion pounds of carbon. If 80 percent of cars in the U.S. were replaced with plug-in hybrids powered by renewable energy, 8.3 percent of carbon would be reduced.

This week the Bush administration announced it will provide the Big Three with $17.4 billion in loans. In order to receive the loans the automakers have to provide details how they will become competitive with their foreign counterparts. When Obama takes office he will be able to renegotiate the loan. The best thing he could do for the American people is to insist that the automakers produce plug-in hybrids.

Related Reading:
Hybrid Cars Protest Bailout, Promote Efficiency
William Ford Talks Up Energy Independence and Electric Cars

Image Credit: The Beast via Boing Boing