Big 3 dealers scared of the new CAFE standards

As our readers surely know, the Senate passed a bill a while back that would require a CAFE of 35 mpg, which is being fiercely opposed by the car-industry lobbies. It seems that these initiatives are making more people nervous: in a recent survey by Automotive News, dealers who sell Detroit's Big Three showed their concerns about the future CAFE standards: It would hurt their sales.

The survey, taken by 698 auto dealers, 374 of them selling US brands shows that 76 percent of them affirmed that higher CAFE standards would hurt sales. On the opposite side, the 117 selling Japanese brands, 70 percent said that it would be good for them.

According to sales activities, 83 percent of Japan 3 dealers are ordering more small cars, compared to 63 percent for domestic brands. And SUVs oders are also down, although the decrease is lower for Japanese brands as well. An interviewed dealer affirmed that people who still SUVs and trucks need them and will keep on buying them so sales might be unlikely to plummet.

It finally raises this question: Has the American auto industry relied too much into SUVs and trucks?

[Source: Automotive News (subs. req'd)]

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