Wednesday, June 3, 2009

Automakers Un-CAFEd

It's not fashionable to talk about de-regulation, but when it comes to automakers and CAFE standards, that's what needed. Holman Jenkins explains

Will Obama Motors do it. Of course not. Too many of his constituencies would pitch a fit.

Money Q:
Unfortunately, Mr. Obama, that freethinker, took to the CAFE fraud like a bat to a belfry. He signaled his arrival on the presidential stage by sternly demanding higher mileage standards early in his campaign. The "change" candidate who might have broken with a generation of political cant about CAFE instead appropriated the fraud for his own careerist purposes.


Anonymous Anonymous said...

The reason gas prices are as low as they are now is because demand as dropped off due to the Bush recession. When the economy reheats, we are going to need more fuel efficient vehicles to keep demand from skyrocketing.

The (new and not implemented) CAFE standards didn't kill GM. The foreign competitors raising their own CAFE standards were making fuel efficient cars were already eroding GM market. GM was over producing crappy cars and encouraging people to get a new one every few years. This was unsustainable.

The real solution for GM is to do what they did for WWII when they switched from cars to planes in a few months. At SOME of their factories, they need to build something else: solar panels, wind turbines, etc.

June 3, 2009 at 10:47 AM 

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