Now that President Barack Obama has decided to let California raise America’s fleet-wide fuel economy regs to something like a 42mpg average, the automakers are howling with righteous idignation. Not. How could they? Not only would that be impolite to the incoming adminstration, environmentalists, the Democratic party and mother Earth, but GM and Chrysler are now more-or-less owned by the same federal government that just told CA to go for it. The New York Times dusted off ye olde “greedy American automakers are dragging their heels over higher mpg vehicles” template, but really, their heart just isn’t in it. But you’ve gotta give the Gray Lady credit for digging up a least one hysterical Neanderthal. Yes, it’s our old pal David E. Cole, whose Center for Automotive Research (CAR, geddit?) created the widely-quoted and entirely specious study that justified the Motown bailout buffet in the first place (if they go down, 42b workers will hit the soup lines). You can guess what David said, but it’s still fun to read. And wait ’til you don’t hear what Detroit doesn’t say…
“The California regulations, if enacted today, “would basically kill the industry,” the GM scion told the NYT. “It would have a devastating effect on everybody, and not just the domestics.”
Trump that! Again, kudos to scribe Nick Bunkley for doing just that. But first he forwards the argument on the automakers’ behalf—a lazy non-attribution if ever there wasn’t one—that they believe the CA regs would force them to dump the lion’s share of their fleet (such as “once popular pickups”) and build cars like… you know it’s coming… the Toyota Prius. Anyway, the quote:
“I want clean air and clean water just like the next guy,” said Erich Merkle, an independent automotive analyst in Grand Rapids, Mich. “But in the real world, there would be consumer outrage with the fact that they’re limited to maybe two vehicles and there’s nothing there that would meet their family’s needs.”
Two vehicles? What is this? Communist Russia? Getting there. Meanwhile, The People’s Car Company (GM), who would normally be screaming bloody murder at the CA regs, made a token attempt at fighting The Governator’s new fiat (no caps).
“G.M., the only Detroit automaker to issue its own response Monday, said it was ‘working aggressively on the products and the advance technologies that match the nation’s and consumers’ priorities to save energy and reduce emissions.’ But the company also emphasized the need for ‘a comprehensive policy discussion that takes into account the development pace of new technologies, alternative fuels and market and economic factors.'”
And to end our little trip to The Brave New World of “In America, the globe warms you,” we turn to the pathetic—I mean, prophetic—Mr. Cole, who agrees with Ken Elias’ thesis that Uncle Sugar will make it right.
“Mr. Cole, the Center for Automotive research chairman, said he believed Congress would ensure Detroit would be able to live with any new standards.”
Cha-ching!
Whom has the trump card here?
If GM goes down, Obama loses – big. If the CARB wins…well, they actually can’t.
This will actually happen…like Gitmo will be closed in 11.5 months.
They’ll go along with it “in concept” (hell, the Volt campaign needs new legs anyway), get the next tranche of their our money and, when the deadline comes say: “Yeah! But we’re not ready yet and it’ll put millions out of work.” And THAT one ain’t gonna happen on Obama-time.
Gosh, this may mean poor people can’t afford new cars anymore.
Jeez that is nothing. There are billions in the stimulous plan for ACORN. What are they going to stimuate? Communism?
How they gonna blame this mess on Bush?
http://nicedeb.wordpress.com/2009/01/26/850-billion-stimulus-package-will-funnel-money-to-acorn/
I love it. The cognitive dissonance this causes everyone is fun to watch.
@bluecon:
It will be easy for them to blame Bush. They’ll simply say all this trouble started on his watch and Obama inherited it.
Remember, when you’re on the political left, you’re always right, and you never ever have to apologize for any of your mistakes.
Are we not giving the Detroit 3 billions for retooling factories to make fuel efficient cars? (GM and Cerebus are getting even more money to stay afloat for a couple more months).
I hope that Obama sees the light and efficiency of stop bailing out poorly run Big 3 businesses and instead switch tacts into a prepacked bankruptcy with Federal loan guarantees for new creditors to invested in emerging business.
I do think it is unfair that only the Detroit 3 qualify for assistance when the transplants do employ a very significant number of workers – their US plants should qualify for retooling money too.
Great Site! First comment.
I think one possibility is that this is all BS from Obama and the car companies. The comparison to Gitmo is a good one. Right now these MPG requirements are just goals. Certainly, 2020 is a big who the heck cares. I do believe that there are also 2012 and 2016 requirements.
Clearly the auto companies including the foreigners are in no position to complain. For one thing even the year 2012 is “forever” when you are trying to survive this year and this month. The other way for the companies to handle this is to “go along with” the CA plan knowing that they will not be able to comply when the first standards apply – like the husband that keeps promising his wife that he will do something that he never does. Also, the companies may be able to pull in more government money for their efforts to meet these standards. If you play out that scenario, what would CA and the other states do? If they allow only a handfull of small cars to be sold in their states, how will their auto DEALERSHIPS stay in business? When the time comes, I see the companies petition for “temporary” waviers based on their best efforts to meet the standards.
My other comment is that this is NOT a situation that requires a national standard because we are talking about AVERAGE fleet MPGs/Emmisions. The prior air standards required EACH vehicle to meet the standards and on that basis it is not practical to manufacture vehicles to different standards. In the new situation a company could determine its mix of vehicles usings both standards with a higher mix of bigger vehicles going to the other non CA/NY states.
As usual, the devil is in the details. What are the loopholes? Are the loopholes large enough to drive a light truck through? Are they going with that sliding scale based on footprint? Yeah, cars/trucks have already become so bloated they’re hard to fit down narrow streets.
Also, what are the penalties… still $55 per mile-to-the-gallon under? Then who cares, you can still get your 22 MPG truck and just pay 20 * 55 = $1100 penalty. Out here in California I already pay an 8% sales tax on the vehicle, so $25,000 * 0.08 = $2000 sales taxes. Just consider the CAFE penalty another tax.
If you really want to jump start the car industry, put in the 42 MPG requirement starting January 1, 2010 and don’t allow any exceptions–all vehicles must meet 42 MPG or they can’t be sold. Can you imagine how many people would rush out and buy new vehicles right now before that went into effect? I know it would prod me to look for a new car.
The Big 2.451 are now a branch of the government and serve political maggots instead of consumers…They will start using more Ruler-Speak now…Words and phrases like “Clearly” “Comprehensive” “21st Century” “For the children” “Change” “Bold” “Hard-working families”.
Amerika will become an Orwellian/Fabian shithole like the UK.
I think the government takeover of the Auto industry has been planned for many years and Cerberus was the govenrnment’s front-company…You?
Remember, when you’re on the political left, you’re always right, and you never ever have to apologize for any of your mistakes.
So, given that, we should be expecting a hearty mea culpa on the whole Iraq thing, right? After all, the Right is so tolerant, understanding and open.
Put it this way: left, right, it doesn’t matter. No one in power in western society, corporate or government, will ever admit to being wrong, no matter their political bent. Claiming some sort of moral high ground, even by inference against the “other guys”, is untruthful.
micromanagement
Is that not a picture of the old Cowel cement plant near Concord California? Excuse me while I remember my old home…okay that’s enough
I’d like to see the car companies step it up and say “Okay California, no new cars for you” or just sell them the cars that meet the standard.
Otherwise I don’t really want to hear they whining any more.
fredtal :
I’d like to see the car companies step it up and say “Okay California, no new cars for you” or just sell them the cars that meet the standard.
Otherwise I don’t really want to hear they whining any more.
This is what I was just wondering. No one is forcing car makers to bend to Cali’s whim. What happens if they just stop making cars to their standards and cater to the other 38 states that don’t follow CA emmisions standards, as well as the rest of the world. People will have to go outside CA to get the cars they want and then they will bitch and complain until the politicians decide to lower the regs. No one is FORCING auto makers to follow Cali rules. Like a lot of businesses that are moving their headquarters out of CA because taxes are insane compared to many other places as well as the cost of office space being statospheric. Eventually someone has to say enough and call their bluff.
@jaje I hope that Obama sees the light and efficiency of stop bailing out poorly run Big 3 businesses and instead switch tacts into a prepacked bankruptcy with Federal loan guarantees for new creditors to invested in emerging business.
Here we go. First step in the union payback and help to organize the transplants. The end of the secret vote.
All this will do is chase more companies out of the North down to the right to work states and overseas.
“Obama vows to reverse Bush labour policies
WASHINGTON – President Barack Obama pledged on Friday to repeal labour laws enacted under his Republican predecessor George W. Bush that unions have long contended favoured employers over workers.”
snip
http://www.windsorstar.com/Business/Obama+vows+reverse+Bush+labour+policies/1236079/story.html
Barack Obama
“Labour is not part of the problem, it is part of the solution,”
Well, bluecon, there is nothing to stop the transplant companies from actually saying “f-this” and closing down the US factories, while investing in new plants either in Canada, or in Mexico. And having ANYONE in the Big 2.45 or even any Detroit supporters whining about it would be nothing more than hypocricy, because the Detroit companies have increasingly been doing this for decades.
NAFTA requires Canadian and Mexican cars to be considered as “domestic” in the US, and vice versa.
So, sure, the BO can go ahead and ram the unions down the throats of any and all companies.
All that will do is finish off the country completely, as virtually ALL manufacturing is moved offshore/outside of the US.
Perhaps that is really what he/his puppet masters really want, who knows?
“Welcome to bizarroland”.
“President Barack Obama pledged on Friday to repeal labour laws….”
The President can’t enact or repeal laws…Congress does that…Or am I missing something?
Well Menno
I think the Japanese don’t care to make much investment in Mexico since it can be a little difficult to deal with the government. Toyota built the second plant in Ontario and made it part of the first plant to keep the union out. The southern states as long as they have the right to work laws are mighty attractive.
Luther
I imagine Harry Reid and Nancy Pelosi will go right along with this plan.
Landcrusher:
Gosh, this may mean poor people can’t afford new cars anymore.
Perhaps. But remember that a political brainstem seriously proposed gas stamps a while back? Would a New Car Stamp Program be that fanciful?
And just like food stamps allow purchases of Doritos and beef tenderloin, don’t be surprised if Spree-Spinners, Bembros and Bilsteins are OK’d by Car Stamp Administrators.
Psar,
You are so right about the cognitive dissonance, so wrong on Iraq. The conservatives are stuck between state rights, and excess regulation, and not believing in global warming. Personally, I stick with state rights, and reserve the right to attack my own state legislature with pen or, if need be, sword.
Of course, I think the car companies should simply stuff the states that want little cars with little cars and simply let the chips fall. The dealers hold huge clout, and they will get it fixed.
OTOH, most conservatives will say the invasion was likely a mistake; however, that doesn’t mean they now have to be for a precipitous withdrawal. Of course, the spinners must play the game, and tout the benefits, but they have to do so to keep the whole thing in perspective. Neither sides’ slobbering partisans are correct any more than a broken clock. And, when they are, they have the reasons all wrong.
Trees,
Car stamps are a non issue. Ideas like that fall under the “Too many folks will grab their guns” category. The left will need to get rid of private education before they could do that, but their elites will not stand for that either.
“entirely specious study”
No facts.
You are wrong. Again.
Cole backs up his claims. You do not.
“if they go down, 42b workers will hit the soup lines”
Robert,
For the second time, I’d like to ask you to stow the line about “soup lines.”
This language does not belong here.
TheRealAutoGuy :
The “soup lines” line is an obvious exaggeration to make the point that the CAR study predicted dire consequences that were completely out of proportion with reality.
But you know that because we’ve already gone over this in great detail, with facts and everything.
Anyone wonder how California, with a 7.5B budget shortfall, is going to somehow create more government jobs to administer this program?
Robert,
Erich Merkle is no longer with IRN, so you might want to remove the hyperlink that insinuates that the relationship still exists.
Erich is a super good guy with a bunch of kids in Michigan. He didn’t mean consumers, he meant himself. He doesn’t want to lose his precious minivan. And no, he doesn’t work at that other place anymore which I will not mention because they are a joke.
Anyways, I would like to see some details about the plan. In particular, does the fleet have to average 42, or is that the minimum that will allow the sale of a particular vehicle? Also, are we talking highway, city, or mixed. That makes a huge difference with hybrids.
It seems like most people here realize that a gas tax is the right way to approach this. With the 42 mandate, automakers will have to develop that technology, but won’t get much of a payoff until after the mandate takes effect. If gas taxes were raised, the automakers could at least sell some of the new technology to finance future development.