With strict CAFE standards set at 34.1 miles per gallon by 2016, automakers have a long, tough road ahead of them. If you compare recent fuel economy increases over the past five years, the task that lies ahead is downright daunting.
It's my equity firm and I'll cry if I want to. Cerberus Chairman John Snow has hopefully for the time being satiated his craving for whine after his address to the Detroit Economic Club. Apparently he thinks he knows all since he helped design the first CAFE standards 31 years ago. Impressive. He stated that the "one-sided" standards, if passed, will put domestic car companies out of business, cost the U.S. lots of jobs, and make him cry. I added that last part.
If you think that the Detroit 3 are the only ones worried about the new CAFE standards, think again. As it turns out, Honda and Toyota execs are supporting a fuel economy bill, but not all parts of the ones proposed. In fact, it almost seems as though they don't want to see their American competition die a legislative death, as Ed Cohen, VP of Government and Industry Relations for Honda North America, said, "I wouldn't count out anybody yet." Since the Detroit 3 employ so many Americans, perhaps
In about ten days, US Senators will start to debate raising fuel economy standards. Last month, a Senate panel approved the idea of raising the CAFE standards to 35 mpg by 2020. But not everyone is enthralled with this idea. In fact, Automotive News has got more details on the plan that some automakers are floating to create exemptions in the new, tougher CAFE standards. Auto industry lobbyists say the 35 mpg by 2020 is "extreme and untenable."