Carmakers (Detroit) fight fuel-efficiency bill

[phantom power]

Words fail me.

As Congress gears up for a fall debate on whether to increase automobile fuel economy, lobbyists for the auto industry are working with chambers of commerce to support less stringent standards.

This week, 27 county and state chambers of commerce, mainly from states with a big auto industry presence such as Delaware, jointly released statements opposing a Senate bill they considered "unachievable," saying it would endanger American jobs.

The Senate measure, which passed in June, requires cars and trucks to achieve a combined average of 35 miles per gallon by 2020 -- a 40 percent rise from current standards.

"I just believe the government is squeezing too far, too fast and it's all political," said Jim Wolfe, president of the Delaware State Chamber of Commerce. "It's going to affect businesses up and down the state."

http://www.delawareonline.com/apps/pbcs.dll/article?AID=/20070825/BUSINESS/708250317/1003

[Deja Q]

1. And if we don't improve gas mileage, that WON'T have an impact?!

I don't think it's unfair for a little more research to go into this sort of thing, I'm sorry.

[AdHocSolver]

7. Correct. As oil prices increase, gasoline, food, plastics, clothes will all increase in price...

since they are all made from oil or use oil in their production. Only those invested in oil will benefit. The consumers will experience higher prices and a lower standard of living.

On the other hand, if demand for oil is reduced by cars getting better gas mileage, then the price of gas will stabilize and may even drop, as it did in the late 1970's after the government mandated and enforced fuel efficiency standards on the auto companies. Another benefit will be reduced greenhouse gases and reduced pollution. The downside is that oil company profits will decline. How selfish of you to not accept a lower standard of living so that Exxon and BP can receive billions in quarterly profits.

The same people who invest in the auto companies also invest in oil companies. Mutual funds, pension funds, insurance companies all have investments in oil and auto companies. They are only looking out for each other.

[GrantDem]

2. and the Big 3 wonder why they are losing marketshare...

[Kolesar]

5. Toyota has gone on record as opposed to increased fuel economy standards, too.

[wordpix]

18. if that's true my next car is a Honda

[NotGivingUp]

3. Fight back. Don't buy a car. n/t

[youngdem]

4. No problem. Just won't buy American SHIT cars then.

Digging their own graves.

Fucking idiots.

What do they think people will want to drive in five years when gas is seven bucks a gallon, and the nation is in year five of a DEEP recession?

[Kolesar]

6. see

http://www.democraticunderground.com/discuss/duboard.php?az=show_mesg&forum=115&topic_id=109958&mesg_id=110043

[losthills]

8. Congress could pass a law tomorrow

that every internal combustion engine vehicle sold in America must be a hybrid. Plug in hybrids are already getting up to 100 miles per gallon with no help from Detroit or Totota or Congress. If Congress passed such a law, then the electrical component of these vehicles would soon make the gasoline engine part unnecesary.

They could pass a law like that tomorrow--if they were working for us...

[ramapo]

9. Same old tired tune

This lame excuse has been used for 25 years. I don't expect it to change or for there to be any real increase in required fuel efficiency.

When oil prices spike and gas becomes more expensive and harder to get, then you will see the clamor for improved efficiency. As much as I hate to say it, the market is the only thing that will drive better fuel economy.

A proactive move would in the long run prove to be far better for all concerned but that would require all concerned parties to look beyond the end of their noses.

[One_Life_To_Give]

10. Not necessarily bad news.

Cost of fuel will likely do as much or more to influence peoples vehical choices. If Detraoit doesn't adapt they will go out of buisiness. More importantly a higher cost will help keep people in developing nations from becoming addicted as well.

[Canuckistanian]

11. Why does a carmaker care about fuel economy?

They're still going to produce cars. And maybe people will opt to buy more efficient NEW vehicles, rather than buy an older, less efficient used car.

And improved fuel efficiency surely doesn't take more R&D than all the options you can buy today.

How exactly do they lose money on this?

[losthills]

12. That is a great question.

It's a fact that they fight tooth and nail against fuel efficiency improvements and drag their feet on electric vehicles year after year. It's logical to ask, "What's their problem?"

[AdHocSolver]

13. The same companies that own stock in autos also own big oil.

This includes mutual funds, insurance companies, pension funds, etc. If they allowed the auto companies to make cars that get good gas mileage, then their oil profits would be less.

Similarly, health insurance companies have investments in hospitals and drug companies. They work the system so that they maximize the profit in all of these businesses at the same time. The insurance companies don't try to curb hospital or drug costs by negotiating kower hospital fees. They merely pay whatever the hospitals demand and increase premiums to the people that they insure. If you can't afford the premiums, then you get no insurance. Those who can afford it, pay high premiums to cover the profits for the insurance companies and the hospitals, through these high premiums that they pay. A properly run single payer national health insurance would negotiate lower prices since they would have no vested interest in making profit off the hospitals.

The reason that what seems like obvious cost saving practices are never implemented is because all of these companies in a given market situation are controlled by the same people through these investment companies.

[One_Life_To_Give]

14. Lack of Vision and Lazyness

Giving you more cupholders or a place to put your IPOD. That their marketing types can understand. But you want fuel efficiency, that means they have to go out and hire expensive Engineers who work with all this Black Magic stuff. Thats just too far outside their comfort zone.

[amandabeech]

15. Detroit-designed small cars have awful reputations.

I'm from Michigan, and although I just can't force myself to buy them, Corollas and Civics are great cars. Escorts and Saturns weren't bad, but I don't think that the Focus and Ion have achieved the decent reliability records of their predecessors.

Also, many people have a bad taste in their mouths over the first rounds of fuel-efficient cars from the '70s and early '80s. I'm talking Pintos, Chevettes and Omni/Horizons. Each one of them absolutely putrid, although I've known some people who kept their Chevettes going for quite some time. At least they didn't blow up when hit from behind like the Pinto.

Detroit makes more money on the large vehicles, be they autos, SUVs, light trucks or something in-between. It is obvious that they put more effort into coming up with decent vehicles in those categories. I see no reason why they can't come up with great small cars, too. I suspect, however, that Detroit will focus on ethanol/gasoline vehicles, because they get lots of tax and CAFE goodies with those, and hybrids. You might even see some diesel mid-sizers, diesels getting better mpg in distance driving than gasoline and`diesel being easier to refine from the cheaper heavy oils on the market. Detroit does do diesel and they have experience in Europe with diesels.

I'll hold my breath for them to do a decent small car again, though.

[gravity]

17. It's about profit margins

To achieve fuel economy of 35 mpg, you basically have to build smaller cars with smaller engines.

US automanufacturers have a cost disadvantage here becasue of worker healthcare and retirement cost, while other nations can rely on the state to cover these benefits. With larger cars and SUVs, these cost can be offset by the higher markups for the vehicles. However, small cars are priced lower and more competively making it harder to make a profit.

[depakid]

16. Both short-sighted and self destructive

It's impressive that these type NEVER learn (even after the Japanese captured their market share).

I fully expect Ford and GM to go belly up after the next couple of oil price shocks.