“Auto manufacturers … you made your bed, now you have to lie in it.” – Eldon Kramer
For years I have written op-eds and posts to this blog criticizing weak-kneed auto manufacturers for caving to the demands of the EPA and mandated Café Standards for miles per gallon under administrations of both parties. Now they are voicing concern over their ability to meet the target 54.5 mpg by 2025, citing their belief that cheaper gas will reduce the demand for more fuel efficient cars.
(Cartoon courtesy of ponderingprinciples.com)
The manufacturers signed-on to the Obama administration’s fuel economy target in 2011 and are now having regrets. The all-knowing EPA maintains that auto manufacturers can meet the standards with improved gas engines, but doesn’t recognize that producing the vehicles is one thing, but selling them is another.
It should be noted that electric cars and hybrids are expected to represent just 2-5 percent of the market in 2025.
I believe manufacturers are in the best position to know what consumers want in a car, and if they don’t sell, welcome to the free enterprise system.
“We can’t get into this world of, ‘We are doing this because the government is making us do it, so dear customer, please help us by buying this compliance car that’s in the showroom.’” said Audi President Scott Keogh.
“Imagine if you were the CEO of McDonald’s and they (the government) say to you, ‘OK, in 10 years … 25, 30 percent of your business is going to be vegan. Go make it happen,’” remarked Keogh.
Last week, General Motors, took action to correct a stated mpg problem before the EPA got involved. Dealers were told to stop selling some 60,000 Buick Enclaves, Chevrolet Traverse and GMC Acadia SUVs after discovering the window stickers had incorrect fuel efficiency numbers. The stickers indicated the SUVs would get 1 to 2 miles per gallon more than they actually do. New stickers were being printed for unsold autos, while a reimbursement of some sort is being considered for those who purchased these vehicles.
The second thoughts by auto makers reminds me of the pharmaceutical companies, insurance companies and doctors who now regret getting into bed with the government on ObamaCare.
If a president Donald Trump is serious about reviewing the excess regulations imposed by the Obama administration, eliminating Café Standards would be a good move, right after approving the Keystone XL pipeline.
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