US$ 1 Billion Prize for Selling 60,000 100 mpg Cars

U.S. Rep. Dan Lungren’s bill that will award US$ 1 Billion to the first US incorporated automobile company who can sell 60,000 units of 100 mpg gasoline powered car is enticing. But isn’t the price too much?

The reward may be huge at first glance but this maybe one of the cheapest way to hasten the development of 100 miles per gallon vehicles. Other companies, not only in the automotive industry, usually use contests to come up with innovative products. Contests such as this one, when marketed correctly, generate more ideas and produce more participants. These contests reduce funding for R&D in companies and, in turn, leave the development of ideas in the hands of the competitors.

There have been contests about 100 mpg vehicles in the past as well but let’s face it - the winners only complied with the guidelines set forth by the organizers. The winning vehicles are not even visually appealing. The designs are not that good and they lack the added features that normal vehicles have. Some even lack the ordinary features that we commonly look for in our cars.

If the US population of more than 300 million is taken into consideration, selling 60,000 units seem very achievable. With the increasing prices of gasoline and oil based products, marketing a competitive 100 mpg vehicle will not be hard. All the competitors have to do is to come up with a car and display it in showrooms.