Thursday, June 21, 2007

Being Less Fuelish

Common sense prevailed in the Senate today as that sometimes esteemed body finally passed legislation that will require cars and light light trucks to achieve greater fuel efficiency - an average of 35 miles per gallon for a car company's entire product line - by 2020.
Senator Christopher Bond, a Missouri Republican, has expressed doubts that such a goal is feasible, complaining that it would require Americans to drive small cars that are favorable for European cities but not for American highways. But Senator Richard Durbin, an Illinois Democrat, counters that the technology and the ability to maximize fuel efficiency exists, and that GM and Ford - two opponents of strict corporate average fuel economy (CAFE) rating increases - have proven that they are up to the challenge by producing economical cars elsewhere in the world.
CAFE ratings are a double-edged sword, as recent history shows. When fuel prices came down and stabilized after the 1979 oil shortage, Detroit manufacturers suddenly found increased demand for their larger cars and were forced to charge a gas-guzzler tax on some of these cars. But as these old Caprices and LeSabres of yore gave way to smaller, front-wheel-drive full-size cars, fuel economy improved and consumers got products of better quality and engineering. But Detroit managed to get around the inability to make cars with wheelbases over 110 inches weighing more than three thousand pounds by offering up minivans, then SUV's, both of which were considered light trucks and exempt from CAFE regulations and marketed as the greatest thing since sliced bread. (It's no coincidence that you see few traditional station wagons offered for sale nowadays.) Detroit may suffer more dislocation in the short term, as light trucks will be held to similar CAFE standards if this bill passes, but if the result means more sensible cars, they'll be able to get through it. Hopefully this bill will help the auto industry get back on its feet, and not temporarily this time as has been the case since 1973.
Christopher Bond notwithstanding, this bill might allow foreign manufacturers to finally offer cars that the lax CAFE standards of the present discouraged the sales of in America, as long as they can pass Washington's safety standards. Bond may rue the day we drive European minicars, but it may surprise him to learn that some Americans actually want such cars. (Sign me up for a Volkswagen Polo!)
Interestingly, both sides of the Senate debate were bipartisan. Durbin's coalition included Republicans who actually want to do something about lessening dependence on foreign oil, and Bond's allies included Democrats from states with constituents working in the auto plants. (The profit margin is higher on SUV's, which means fatter paychecks for assembly line workers lucky enough to have a job these days.) But with the supply of oil being more unstable, it's best to wean Detroit off its addiction to building bigger and badder before the next major oil shortage leaves the auto industry unprepared and finishes them of entirely.
Let's not celebrate the passage of this legislation yet, though; the House still has to act.

No comments: