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AAA's exclusive Q&A with President Obama

When it comes to fuel prices, pain at the pump is very real for many Americans. In an exclusive interview, President Barack Obama spoke with AAA on the impact of rising gasoline costs and what he is doing to address the problem. The following interview was conducted on March 22, 2012, in Cushing, Okla., by Yolanda Cade, AAA’s public relations managing director.

AAA: AAA serves 53 million members, and many of them – like most Americans – are confused and frustrated about rising gas prices. What would you say to drivers who are feeling that pain in the pocketbook when they’re filling up at the pump?

President Obama: Well, first of all, I understand what folks are going through, because it wasn’t that long ago that I was having to fill up my gas tank and drive to work, shuttle the kids back and forth to school and their events. And it takes a big bite out of folks’ paychecks. The challenge is that we’ve been going through this kind of cycle of ups and downs in gas prices for decades now. We don’t have the control over our own energy security the way we need to. And so [we need] an all-of-the-above strategy that involves higher oil production here in the United States but also involves making our cars more fuel efficient, expanding biofuels, using all the resources we can to try to lessen our demand for foreign oil, which makes us less vulnerable to price spikes over the long term.

Right now, the key thing driving higher gas prices is actually the world’s oil markets and uncertainty about what’s going on in Iran and the Middle East, and that’s adding a $20 or $30 [per barrel] premium to oil prices, and that affects, obviously, gas prices. What’s also driving it, and this is something that’s not going to reverse, is increasing demand in countries like China and India. In 2010, for example, China added 10 million cars just in that one year. So as more and more people around the world see their standards of living rising, they purchase cars, they have demand for oil. That creates a greater demand worldwide, and that raises the price. That’s why we’ve got to make sure we don’t just focus on production.

AAA: Given the global forces driving the oil and energy markets, what is the role of any president in addressing the price of gasoline at the pump?

President Obama: Well, there are a couple of things that we can do right now. There are some bottlenecks in distribution that we’re trying to impact, and building [a] pipeline from Cushing down to the Gulf is an example of where you get more oil to refineries faster that can hopefully be distributed more efficiently across the country. We are looking at making sure we’re enforcing laws preventing illegal speculation in the oil markets. That can have some modest impact potentially, if something is going on there that shouldn’t be going on. But the most important thing I can do as a president is not to simply focus on tomorrow. It’s focusing on getting America properly aimed toward our goal of continuing to reduce our dependence on foreign oil. And we’ve had success over the last three years. We’ve actually seen every year our oil imports decline, even as we climbed out of a recession, so the economy was growing. We’ve now doubled fuel efficiency standards on cars and trucks, and that’s going to mean you only take one trip to the gas station instead of two, which could end up saving the average family about $8,000 during the life of their car. These are the kinds of strategies that I have the most control over, not the day-to-day spikes in the oil market.

AAA: There are signs that the American economy is improving. Do you have any concerns that rising gas prices may at some point stifle the recovery?

President Obama: We saw that happen last year, where consumer confidence was building and then suddenly pulled back sharply. People are very sensitive to oil prices. I know this is a small consolation, but the payroll tax cut that we passed at the beginning of this year and then we’ve now extended to the end of the year, saves the average family about $1,000 a year. And that is helping to buffer some of these rising gas costs.

AAA: Mr. President, how do you effectively balance fuel efficiency and ensure there is appropriate infrastructure while preserving consumer vehicle choice?

President Obama: One of the great things we’ve been doing with the auto industry over the last couple of years is not only are we producing more fuel-efficient cars, but they’re better cars, more attractive cars and safer cars. What we’ve been arguing consistently is that if we unleash American creativity [and] design, and we properly incentivize people to think about fuel economy as part of overall design, Americans can make great cars. If you look at the cars being built in Detroit right now, they’re getting more gas mileage, they’re safer than they were – they’re not compromising on styling – and part of that is everything from figuring out the aerodynamics, to tire drag, to air conditioning systems that are more efficient. All of those technological advances are making a difference, and we are continuing to spur advanced technology improvements in our auto vehicles. That includes conventional cars, but it also includes electric and hybrid cars.

AAA: And in anticipation of that, AAA is pilot-testing delivering energy at the roadside, by delivering an electric charge to electric vehicles in need. You said that when you leave office, you will buy and drive a Chevy Volt. What role do you think electric and other alternative vehicles have in helping to prevent the kind of gas price fluctuations that we’re now seeing? What role do you think they’ll play in the future?

President Obama: You identified the big challenge: People need to feel confident that when they get into an electric car that they’re not going to get stuck [on the roadside], or at least not any more stuck than when they forget to fill up and then they call AAA.When we start having both more efficient batteries but also distribution capacity, then I think we can see a substantial expansion in the use of electric vehicles over the future, and anything we’re doing to reduce oil consumption, while maintaining our growth and productivity, that’s all good.

AAA: Finally, what was your first car, and do you have any fond memories of your driving experience that you’d like to share with us?

President Obama: Well, first of all, I was a AAA member for years, up until [the Secret Service] told me I couldn’t drive anymore. But I have to confess: My first car was my grandfather’s car, which was a Ford Granada. Now Ford is doing great now. The Ford Granada was not the peak of Detroit engineering.It rattled and it shook, and I don’t think the girls were particularly impressed when I came to pick them up in a Ford Granada. But you know what? It moved, and so I have fond memories of the fact that it got me to where I needed to go.That’s about all I can say about the Ford Granada.

AAA: Thank you, Mr. President, on behalf of our 53 million members.

Car Insurance for the Classics

When Frank Dalessio bought his 1972 Corvette Stingray Coupe seven years ago, the first thing he wanted to do after fixing it up was insure it.

“It definitely gives you peace of mind to know that something you’ve put a lot of hard work into is insured in the event something should happen,” says Dalessio, a retired carpenter who lives in Barrington, R.I.

Standing next to his pride and joy, Dalessio talked about all of the work that went into it, and how he wouldn’t have trusted insuring it to anyone but AAA.

“I have my other insurance—including for my motorcycle and homeowners—through AAA and have been very happy with it,” he says. “The price is reasonable and the service has always been good.”

Insurance for classic cars is actually less expensive than it is for regular-use vehicles.

Usage: Vehicles must be used on a limited basis consistent with the operation of something valuable, such as club functions, exhibitions, organized meets, tours and limited pleasure driving.

Storage: Collector vehicles must be stored in an enclosed and secure structure when not in use. Qualifying storage locations include private residential garages, private pole buildings or barns, and rental storage units.

Driver Eligibility: Generally, one or two minor violations or accidents are acceptable for most programs. Major violations—such as any alcohol/drug violation or reckless driving—that occurred in the past three to six years are not. All household driving records are subject to review by an underwriter.

Regular-Use Vehicles: All licensed household drivers must have a regular-use vehicle to use for daily driving.

Applicants must also maintain regular-use insurance in their own names. Motorcycles and public transportation are not considered regular-use vehicles for certain programs.

For more information on insuring classic vehicles, click here.

 

 

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