Midpack
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The cars the American government expects from Detroit - Apr. 3, 2009
Please, this is not a post to debate whether or not smaller more efficient cars are desirable for the USA. It begins with the assumption we will need smaller cars and from there, how best to get there.
The article above, like others, suggests our gubmint thinks the best way is to increase CAFE standards. No matter what automakers produce, if fuel costs are low, consumers will buy larger, less fuel-efficient cars. If the last 10 years and the Escalades, Hummers, etc. haven't shown that, I don't know what will. Conversely, the relatively brief period of high fuel costs last year showed it as well with large vehicle sales hitting the wall very quickly.
I believe increasing the taxes on fuel are the more effective approach, also within the power of our gubmint. It's clear we have too much debt, and we're in the process of making it much worse, so Federal revenues are going to be an issue. Taxes are going to go up. Why not substantially increase the cost of fuel via taxes and fees - instead of relying entirely on income tax increases?
European's have generally much smaller, better more fuel-efficient cars than we do. I don't believe it's because their citizens are smarter than we are. I do believe it's because their fuel costs have been so high for so long (due to taxation) that it's caused demand for small, fuel-efficient cars. And they're looking pretty smart about now for having done so.
However, this could cripple the D3 short term, so it might need to announced to begin in 4 years or phased in to a) give D3 automakers time to develop models for a $4-8/gallon USA and b) to give consumers time to plan their purchases. Automakers and consumers who don't will risk the consequences.
While the latter will be disruptive, it will be more effective than the CAFE approach IMO. CAFE will be disruptive, and less effective.
Please, this is not a post to debate whether or not smaller more efficient cars are desirable for the USA. It begins with the assumption we will need smaller cars and from there, how best to get there.
The article above, like others, suggests our gubmint thinks the best way is to increase CAFE standards. No matter what automakers produce, if fuel costs are low, consumers will buy larger, less fuel-efficient cars. If the last 10 years and the Escalades, Hummers, etc. haven't shown that, I don't know what will. Conversely, the relatively brief period of high fuel costs last year showed it as well with large vehicle sales hitting the wall very quickly.
I believe increasing the taxes on fuel are the more effective approach, also within the power of our gubmint. It's clear we have too much debt, and we're in the process of making it much worse, so Federal revenues are going to be an issue. Taxes are going to go up. Why not substantially increase the cost of fuel via taxes and fees - instead of relying entirely on income tax increases?
European's have generally much smaller, better more fuel-efficient cars than we do. I don't believe it's because their citizens are smarter than we are. I do believe it's because their fuel costs have been so high for so long (due to taxation) that it's caused demand for small, fuel-efficient cars. And they're looking pretty smart about now for having done so.
However, this could cripple the D3 short term, so it might need to announced to begin in 4 years or phased in to a) give D3 automakers time to develop models for a $4-8/gallon USA and b) to give consumers time to plan their purchases. Automakers and consumers who don't will risk the consequences.
While the latter will be disruptive, it will be more effective than the CAFE approach IMO. CAFE will be disruptive, and less effective.