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07-25-2007 10:42 PM #1
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- Oct 2006
Why Did Detroit Need to Be Forced Into Fuel Efficiency?
Detroit automakers successfully lobbied to keep the 27 mpg CAFE (Corporate Average Fuel Economy) standard from increasing for nearly 30 years.
Publicly they argued raising it would be bad for their business as the gas guzzlers have higher profit margins than smaller, thrifty fuel efficient cars and hybrids. Despite decreasing market share and massive layoffs for the last 10 years they (Ford, GM, Chrysler) still lobby against increases to CAFE.
In light of Toyota’s and Honda’s tremendous sales success with fuel efficient cars the public and federal politicians have largely begun to disagree with Detroit’s point of view and to the automakers surprise the Senate passed a bill in June 2007 to increase the CAFE standard to a whooping 35 mpg by 2020.
Why is Detroit so adverse to running a successful business. Do they prefer to keep their stock value high by laying employees off rather than selling lots of cars people want?
P.Fezziwig, author for GreenCarsNow.com , a website promoting environmentally friendly vehicles & CarRepairRatings.com , a website for consumers to rate their mechanics work.