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The government does not need to dictate MPG to the auto companies, the market and $3/gal gas will do it for them. In case you haven't noticed, MPG is a BIG deal these days. Pay attention to car ads here recently? It's not HP that companies are bragging about, it's MPG.
Companies will develop more efficient vehicles because they will sell, pure and simple. Premiums will have to be kept low, or they won't sell. It's simple economics. Build the product that the consumers will buy. Can you imagine how well a 25-30 MPG F150 or Silverado would sell? THAT is why government regulation is stupid. People vote with their pocketbooks, which is far more powerful than the flacid CAFE standards.
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‘07 Mazda RX8
Past: 911T, 911SC, Carrera, 951s, 955, 996s, 987s, 986s, 997s, BMW 5x, C36, C63, XJR, S8, Maserati Coupe, GT500, etc
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