Coming soon: Individual mandate to buy Chevy Volts

[Geee]

Washington Examiner:

President Obama spent more than $85 billion bailing out General Motors and Chrysler three years ago. Now he claims credit for saving the industry, noting GM's recent return to the top sales spot among automakers worldwide, Ford's record profits (albeit achieved without federal funds), and the recent revival of Chrysler, (though Italy's Fiat owns it). Regardless whether you supported or opposed the government bailouts, the reality is the Big Three's assembly lines are humming again. Too bad Obama's Environmental Protection Agency is preparing yet another killer hike in the Corporate Average Fuel Economy, only this time instead of merely inflicting massive costs on the industry and consumers, the coming regulation could very well demolish the Big Three for good.

Here's why: The CAFE rule is the fleet-wide average fuel economy rating manufacturers are required by Washington to achieve. The new rule -- issued in response to a 2010 Obama directive, not to specific legislation passed by Congress -- would require automakers to achieve a 40.9 mpg CAFE average by 2021 and 54.5 mpg by 2025. In case you're wondering whatever happened to the National Highway Traffic Safety Administration, it has been supplanted in the CAFE process by the EPA. The proposed regulation was designed, according to the EPA, "to preserve consumer choice -- that is, the proposed standards should not affect consumers' opportunity to purchase the size of vehicle with the performance, utility and safety features that meets their needs." But the reality is that consumer choice will be the first victim.

Getting from the current 35 mpg CAFE standard to 54.5 can be achieved by such expedients as making air conditioning systems work more efficiently. We have a bridge in Brooklyn to sell to anybody who thinks that's even remotely realistic. There is one primary method of increasing fuel economy -- weight reduction. That in turn means automakers will have to use much more exotic materials, including especially the petroleum-processing byproduct known as "plastic." But using more plastic will make it much more difficult to satisfy current federal safety standards. The bottom-line will be much more expensive vehicles and dramatically fewer kinds of vehicles.

The average price of a new vehicle will go up at least $3,200, according to NHTSA, but experts outside government such as the National Automobile Dealers Association say the cost will be substantially higher. The U.S. Energy Information Administration projects that there will be no vehicles costing $15,000 or less, the segment of the market that college students and low-income consumers depend upon. Altogether, an estimated seven million buyers will be forced out of the market for new cars.

[Rokke]

Interesting cycle. The unions bankrupt our auto companies. They then buy America it's next President, who uses tax dollars to bailout the bankrupt auto makers. Using free money, the auto makers begin to make a profit again. The bought and paid for President institutes new regulations that will bankrupt the auto industry again. Just in time for unions to buy a new President.

[pollyannaish]

Not to get distracted or anything...but I don't think we've paid $15 k for a car in our entire lives. And we don't plan to.

 

On another note, there is one VOLT in our town. The owner has VOLT in 2' high letters on each side of the car. We call him the volt dolt. It's embarrassing.

[NCTexan]

Rush articulated what I'd been thinking for quite a while...

 

Obama's precious Volt is just a heavily subsidized "Coal Powered Car".

 

Since the majority of our nation's electricity comes from coal fired power plants... that's what powers the Volt. The administration and the other Volt Dolts seem to think that it runs on static electricity.

 

[Argyle58]

The CAFE standards have killed more people than every drunk driver in the history of this country combined, and has also killed more jobs than the UAW. American automobiles have become rolling death traps and are considered jokes among the rest of the industrialized world.