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Could the proposed standards lead to automakers vacating smaller platforms?

The proposed CAFE standards that have been looming all year will force some major changes on the automotive market. The government says that the much more stringent fuel economy standard will save consumers at the pump and reduce the national need for foreign oil. The auto industry has said that the cost of meeting the standard would increase the cost of new vehicles and could result in lost jobs.
 
According to a new study published by the University of Michigan, the CAFE standards will make cars larger, not smaller. The study indicates that there is a loophole in the economy standards that the automakers could exploit.
 
"For just about all the scenarios, the car got bigger,” said Steven Skerlos, an associate professor at U-M Department of Mechanical Engineering. “What you can model in a computer is different from reality, but based on this research we expect it to happen."
 
The loophole is that the formula used for determining miles per gallons required under the new standard uses the vehicles footprint (multiplying the wheelbase by track width). This was done to give larger vehicles less stringent economy standards to follow. In a nutshell, the formula favors larger vehicles and those vehicles may be less costly since they wouldn't have to use as much technology for fuel gains. 
 
Therefore, automakers may design new vehicles to be larger in an effort to target the lower economy standards. The study also claims that not only would the automakers considering redesigning a vehicle to go for the lower economy limits undermine the CAFE standard goals, but it would also create more pollution
 
"This study illustrates that there may be a substantial financial incentive to produce larger vehicles, and that it can undermine the goals of the policy," said Kate Whitefoot, who conducted the research as a U-M design science doctoral student and is now a senior program officer at the National Academy of Engineering.

Source: AutoNews



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This article is over a month old, voting and posting comments is disabled

By lightfoot on 12/15/2011 3:52:24 PM , Rating: 2
quote:
I am still waiting for a thoughtful response to why CAFE is bad.

Shane wrote this really great article titled "Study Claims CAFE Loopholes Will Make Vehicles Larger, Not Smaller."

It goes into pretty good detail about one of the reasons that CAFE is bad.

The Cliff's Notes version is basically this: CAFE was designed to reduce fuel consumption and emissions. Instead it makes vehicles larger and consume more fuel and create more emissions. That is bad. Mmkay?

A fuel tax on the other hand would have EXACTLY the desired results and would not have loopholes because it is so simple. Heck, Europe even tested it for us and proved that it works.

How the Corporate Average Fuel Economy is supposed to work can't even be described in three pages much less three sentences.

A fuel tax makes fuel more expensive. People react by buying, and thus using, less fuel. The money collected by the tax can be invested in technologies that improve fuel efficiency, build better roads, and improve access to transportation to the poor.

CAFE is needlessly complex and irreparably flawed. It is bad legislation and bad government policy.

I am still waiting for a thoughtful response to why CAFE is good.


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