Walmart's New Health Food Push: Is It Too Hard to Swallow?
Bonds Are a 'Safe' Investment: A Big Lie Gets Even Bigger
President Obama is set to announce the first-ever national emissions limits for vehicles later today, and will require a 35.5 mile-per-gallon fuel efficiency standard. The announcement was confirmed by Vice President Joe Biden as he was giving tours of the super-secret 9/11 bunker ... just kidding. It was confirmed by Carol Browner, the White House energy and climate director. This plan couples pollution reduction from vehicle tailpipes and increased efficiency on the road. The plan should save 1.8 billion barrels of oil through 2016 and will be the environmental equivalent to eliminating 177 million cars from the road. According to the plan, new vehicles will be 30% cleaner and more fuel-efficient by the time the program is in full effect in 2016. New vehicles may then cost an extra $1,300.
Thanks to the plan, the auto industry will need to increase production of fuel-efficient vehicles at a quicker pace than originally expected. The price tag will also be hefty, as the Transportation Department estimated a year ago that requiring the industry to meet 31.6 MPG by 2015 should cost nearly $47 billion.
Yes, these rules "could radically reshape the U.S. automotive industry," but it could also hurt Detroit automakers. For light trucks, the new standards will be 30 MPG, up from the current benchmark of 23.1 MPG. I'm no car expert, but I believe it is going to take a great deal of technology and work to ramp up the MPG standards from 23.1 to 30. In fact, both Chrysler and General Motors (NYSE: GM) have asked for "several billion dollars" in loans from the federal technology program to pay for new, fuel-efficient models like the Chevy Volt.
The timing of this announcement could have been better, especially in light of the current economic situation in the auto realm.
I will not say that these emission standards are sounding a death knell for Chrysler and GM, but they are going to be difficult for struggling Detroit automakers to meet unless they get some (more) help from the government.
Goldman Earnings Sink After Buffett Dividend
Johnson & Johnson's Income Falls 23%
Burberry Shares Leap on Sales Update
Reader Comments (Page 1 of 1)
5-19-2009 @ 10:30AM
matt said...
Ridiculous.
5-19-2009 @ 11:06AM
Iridium said...
You forgot to mention that all cars will be required to hit 42mpg by 2016. A number that is impossible for nearly all cars beyond small compacts and hybrids.
We are all going to be forced to buy hybrids by 2016 if we want a new car. I don't think it is a coincidence that the new standards match the numbers of Ford's new Fusion hybrid.
My car has a 2.0L 4 that makes 165 hp and gets 30mpg. I don't see how my car can be changed so it can get 42mpg.
This proposal is insane but it is what Obama wants. The government will own the auto industry and they will only make cars that meet the new standards. It will be a new Yugo. I see other manufacturers simply pulling out of America. Cars like the Hyundai Genesis will be gone. So will all performance cars.
Unless congress grants an exception for sports cars the new Camaro, Mustang, and Corvette only have 4 more years. There is no way you can get 42mpg in a Mustang or Corvette.
5-19-2009 @ 2:19PM
Jeff said...
Iridium, you're complete lack of knowledge on the subject really shines through on this one. I'm sad to think that you (and others like you) might actually vote.
These mileage standards are fleet averages, and given that you don't even know that, you should take your two cents back.
Have fun figuring how to "change" your car for better mileage to meet requirements - you've just cemented your stupidity.
5-19-2009 @ 4:49PM
ij70 said...
@Jeff. Fail.
5-20-2009 @ 12:29AM
Mark Dias said...
Isn't it great? Obama now is going to tax the little guy he said he wasn't going to tax by 1300 dollars a vehicle. Take a look at my blog to see what your next vehicle might look like.
http://mark24609.blogspot.com/2009/05/lets-just-finish-off-auto-industry-once.html