The Demo Site

That thud you just heard was the “other shoe” dropping in Washington, D.C.: the Obama administration has used the turmoil in the auto industry as an opportunity to nudge—okay,force—the industry into a new, more environmentally sensitive direction, thus making good on its promise to impose stricter Corporate Average Fuel Economy (CAFE) and tailpipe emissions standards across the automobile industry.
The proposed mandate raises CAFE standards about five percent annually from today’s level of 23 mpg for trucks and 27.5 mpg for cars to 30 mpg for trucks and 39 mpg for passenger cars by 2016, for an average of 35.5 mpg overall. This is roughly four years earlier than the already aggressive 35-mpg goalpost established by Congress in 2007.
As Goes California, So Goes the Country
These standards more or less embrace the strict fuel-economy/emissions proposals that California and about a dozen other states have been trying to implement for years, but which have been blocked by industry lawsuits. The mandate should therefore put many of the existing state lawsuits to rest.
Interestingly, many of the same players that have been trying to block the implementation of the California proposals have embraced the Obama mandate. Ostensibly, this is because the new rules create a uniform standard for the country, instead of allowing states to dictate their own emissions and fuel-economy standards.
“We’re cool with this,” Chrysler spokesman Scott Brown told us in a phone interview. “Most important is that it’s clear instead of piecemeal—we love that.”
Moments later, GM environment and energy spokesman Shad Balch echoed the sentiment, nearly verbatim: “We love it. Now we know what to build,” he told us. “As it was before, it was 14 states doing 14 different things, and we’d have to build products for each.” The new regulations, he said, allow for a “harmonized national product program, which allows for more efficient product planning. For a company trying to become leaner and more efficient, this is a huge step in the right direction.”
There's another force at play here, however, as both Chrysler and GM, recipients of massive government bailout loans, are in no position to voice dissent. Whether they think these policies are sound or not is moot; they will toe the Obama party line because he's their de facto boss. Ford knows it will have to ask for Obama's help if the economy doesn't improve soon, so it is also going along with the hype. Honda and Toyota have been tooting their green horns for years, so they can't very well be the voices of dissent on this issue. Put bluntly, the government is ramming this down the throats of the car companies.

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