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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!
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