Government Considers Easing CAFE Standards

[jyl]

It appears that the government is considering changes to the CAFE fuel efficiency standards that would reduce the pressure on GM and Ford to improve the mileage of their trucks and SUVs.

I don't think this is the right direction . . .

http://online.wsj.com/article/0,,SB112260151147599563,00.html?mod=home_whats_new s_us

Excerpt:

"By LAURA MECKLER
Staff Reporter of THE WALL STREET JOURNAL
July 29, 2005; Page A2

WASHINGTON -- A major overhaul of fuel-efficiency standards for light trucks that is now being considered by the Bush administration seems likely to help beleaguered Ford Motor Co. and General Motors Corp. and hurt Japanese rival Toyota Motor Corp.

Current rules punish companies that rely heavily on sales of the biggest pickup trucks and sport-utility vehicles -- a category that is dominated by GM, with its Yukon and Tahoe SUVs, and Ford, which sells more than 900,000 of its F-Series pickups a year. These companies are forced to sell smaller trucks at smaller profit margins, or even a loss, to make sure they sell enough of the more fuel-efficient vehicles to bring their fleetwide averages up to the government's 21-mile-per-gallon requirement.

The government now calculates auto makers' performance by averaging their entire fleets' gas mileage. A complex rewriting of the rules, expected for release by Labor Day, seems likely to change that.

Under the proposed new regime, light trucks -- a category that includes pickups, SUVs and minivans -- would be judged against other trucks of similar size, though not by weight, according to auto industry and environmental lobbyists. Smaller vehicles would be required to meet higher mileage targets than larger ones. This shift would help domestic auto makers, while causing problems for Toyota, which has had an easier time meeting the current standards."

[IROC]

It is ironic that in this day and age of higher fuel prices, global warming, threats of impending doom regarding oil supplies, etc. that cars, as a whole, get much worse gas mileage than they used to. Remember when 200hp used to be *alot* of power in a car? I've owned more than a couple of of cars that had less than 100hp. My first car - a 1978 Mazda GLC - got 40mpg. It's gone downhill from there.

I think we're headed the wrong direction these days also.

Mike

[kaisen]

I'm normally opposed to such things. Government regulations suck. When they mess with automobiles it can really suck.

But CAFE seems to have worked in a weird way. Short term, the automakers have 'bought' CAFE compliance by subsidizing their small cars and trucks to make sure they sell enough to offset their big profitable trucks and SUVs. Longer term, they have developed or improved technologies (especially computer and fuel injection systems) to improve their efficiencies.

An efficient drivetrain can be looked at both ways. Specific output efficiency can mean more power for a given size engine. The domestic automakers haven't made their engines smaller, if you haven't noticed. But they are MUCH more powerful.

My parents 2004 LeSabre is a large car by today's standards. It has a fairly big 3.8L V6. It makes 205 hp and 230 lb-ft. They get up to 32 mpg freeway. Unthinkable twenty years ago.

I think CAFE should stay!

E

[gaijindabe]

Supply and demand is the only thing that works.

Higher price = lower consumption

I would accept an extra buck a gallon in taxes, if I didn't have to pay tolls..

[1967 R50/2]

1. Score one for the domestic lobbying groups if this goes through.

2. It will be a transient victory as I am sure that Toyota and Nissan will upsize their Sequoia and Titan trucks to take advantage of the new standard.

Overall, I think it is a bad idea that won't fly.