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Concession would make fuel economy standards easier for large trucks  (Source: Dodge)
Concession would reduce the yearly increase rate for new standards for large trucks and SUVs to 3.5% per year

The Obama administration wants to significantly increase the CAFE standards that govern fleet wide fuel economy for automakers. The problem is that there is a huge amount of backlash from those in the automotive industry. The backlash is so far keeping the Obama administration and automakers from coming to an agreement on proposed fuel economy standards moving into the future.

The Obama administration has put a concession forward in an effort to woo the Big 3 automakers to agree to the economy standards. The concession would see the makers of big trucks and SUVs forced to move to the higher fuel economy standards at a much slower rate than makers of cars and light SUVs. Hopes are high that the agreement between the Obama administration and the Big 3 will be made by early next week. 

Washington wants the CAFE requirements to be set at 56 mpg by 2025. The concession would allow the Big 3 to adopt the CAFE standards for the larger, gas guzzling vehicles, at a rate of 3.5% per year rather than the 5% annual improvement rate that the Obama administration wants for light trucks, cars, and light SUVs.

CAFE standards are currently targeting 35.5 mpg fleet wide by 2016 and that number will grow to 56 mpg by 2025 under the proposed regulations. The final rules are hoped to be ready by September.

However, automakers outside the Big 3 are not happy at all about the proposed concession. Carmakers that do not produce large SUVs and trucks see the concessions as giving the Big 3 an unfair advantage. The companies feel that the concession would encourage consumers to buy less efficient vehicles. 

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RE: I see SUVs selling very well
By 91TTZ on 7/15/2011 4:58:01 PM , Rating: 2
Securing and stabilizing the country's energy needs is and should be a job of the government to ensure that the market doesn't destroy itself. Sure, you may want that large vehicle, but if you want to keep driving it long term and make it affordable (affordability is something that everyone, including businesses want), conservation of petroleum to keep the price low is the only way to make it happen.

Oil is a commodity that's traded in a global market. If the US uses less oil, that oil doesn't get stored for our future use. Instead, it just drives the market price down and then the consumers in other countries will demand larger, less efficient vehicles since gas will be cheap. In the end, you didn't conserve anything. Even if we found a huge amount of oil right here in the US, that doesn't mean that it helps our energy independence. As I mentioned before, it's a global commodity and that fuel would be worth a lot of money. So if we somehow found a huge reserve of oil in Kansas, that oil would simply be sold for the normal market rate. If there was a huge global oil shortage, that oil from Kansas would still be sold on the open market, the price would just be higher.

By Reclaimer77 on 7/15/2011 8:30:04 PM , Rating: 2
LOL great point 91TTZ, you are my hero of the day.

It's like he really believes if higher CARB passes, OPEC will be like "OKAY guys, the U.S. has more fuel efficient cars now, damnit, stop drilling the oil now."

It's not about oil for him anyway. It's just another excuse to do more social engineering and get this utopian society going.

"Let's face it, we're not changing the world. We're building a product that helps people buy more crap - and watch porn." -- Seagate CEO Bill Watkins

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