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Romney says the new standards are "extreme," but Obama disagrees

This week was particularly monumental for the auto industry as the Obama administration finalized the new Corporate Average Fuel Economy (CAFE) standards. The new rules have faced some criticism, but President Barack Obama isn’t backing down.
 
The criticism comes from Obama’s presidential election opponent Mitt Romney, who believes there is a better method of increasing fuel economy than changing CAFE standards.

"Just yesterday, my opponent called my position on fuel efficiency standards extreme," said Obama. "It doesn't seem extreme to me to want to build more fuel efficient cars. Maybe the steam engine is more his speed."

Obama further added that the new CAFE standards will allow U.S. drivers to fill up their gas tanks "half as often." But when the new rules were finalized Tuesday, Romney failed to see the benefit to driving citizens. 

"Governor Romney opposes the extreme standards that President Obama has imposed, which will limit the choices available to American families," said Andrea Saul, Romney spokeswoman. "The president tells voters that his regulations will save them thousands of dollars at the pump, but always forgets to mention that the savings will be wiped out by having to pay thousands of dollars more upfront for unproven technology that they may not even want."


The new fuel efficiency standards for 2017-2025 will cost the auto industry $157.3 billion and add an average of $2,000 extra to the sticker price of new autos.

While some are clearly unhappy with the new standards, others are seeing added benefits. Honda, for example, was delighted to see that the standards provided extra credits for those selling natural gas-powered vehicles. Tesla also jumped on the CAFE bandwagon when it learned that it could sell any credits for surpassing the standards to companies that haven't.

The CAFE standards will raise the average fuel efficiency of cars and light trucks to 54.5 mpg by model year 2025. These new standards, which were created by the U.S. Environmental Protection Agency (EPA) and the U.S. Department of Transportation’s (DOTs) National Highway Traffic Safety Administration (NHTSA), were based off of the Obama Administration's first standards raised average fuel efficiency to 35.5 mpg by 2016. It was intended for cars and light trucks during model years 2011-2016.

The 54.5 mpg CAFE standard aims to save consumers more than $1.7 trillion at the gas pump, cut U.S. oil consumption by 12 billion barrels, reduce greenhouse gas emissions by 6 billion metric tons over the course of the program, and encourage the adoption of autos like electric vehicles (EVs) and plug-in hybrids. 

Source: The Detroit News



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RE: Free market fantasies
By Uncle on 8/30/2012 10:15:56 PM , Rating: 0
Also"The 54.5 mpg CAFE standard aims to save consumers more than $1.7 trillion at the gas pump," That number is based on today's prices, which is a crock an illusion. Capitalism doesn't work to the benefit of the people anymore because more and more products are being carved out by fewer and fewer corporations meaning less competition. Capitalism dictates as it is now that companies have to make more profit each quarter to satisfy the shareholders. If by some miracle everyone was to get a vehicle overnight, that got 54.5mpg at today's prices, oil companies would cut 12 billion barrels but would have to jack up their prices to continue to gouge the consumers to satisfy the shareholders. This is one big lie. Capitalism dictates profit every quarter and as it is now that profit comes from you and me. Its similar to Utility companies saying if you cut back on your power usage,you will save money,again another lie. When enough people use less power the price goes up to make up for the loss in revenue. Its a capitalist lie. Ever see any of your utility bills go down. People have moved to smaller cars see gas prices go down. You can brown your lawn in the summer and your bills still go up,because your city or town has budgeted for last years water revenue receipts. I remember years ago when San Fransisco had a water shortage and jokingly asked people to share the shower, which the people did, next year San Fransisco raised the water rates to make up for loss of revenue. My 2 cents.


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