California Congressman Alleges CAFE Benefits Bailout Recipients
Bloomberg is reporting that House Republicans, led by California Congressman Darrell Issa, are set to produce a report that heavily criticizes CAFE as a politicized move designed to curry favor with bailed out auto makers and environmental groups.
Issa called CAFE
Singled out in particular by Issa were the influence exerted by California (which can write its own rules if it is unsatisfied with the federal government’s own rules) and environmental groups. The Detroit News reports that Toyota, along with other foreign automakers, were unhappy with the deal, and they perceived favoritism towards the home team.
Automotive News, quoting the paper, recounts how Toyota Motor Sales U.S. head Jim Lentz told Ron Bloom, then the White House chief negotiator, how Toyota felt.
Another sticking point for Toyota was the slippery definition of what exactly constitutes a truck. The Big Three had been using this as a way to shift vehicles, like the Chrysler PT Cruiser, into the “truck” column to help bring down their fuel economy averages on the truck side.
Toyota also argued that the definition of a full-sized pickup truck — a stronghold of Detroit automakers for years — had been written to exclude the Toyota Tundra. Lentz said the deal was an “old Detroit tactic. It may hurt me, but it hurts my competitors more,” Toyota’s notes said, the News reported. But the White House was eager for Toyota to support the deal. “It looks bad for me and bad for you if Toyota is not there,” Bloom told Lentz at one point during the process, the News reported.
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- FreedMike I'd say that question is up to the southern auto workers. If I were in their shoes, I probably wouldn't if the wages/benefits were at at some kind of parity with unionized shops. But let's be clear here: the only thing keeping those wages/benefits at par IS the threat of unionization.
- 1995 SC So if they vote it down, the UAW gets to keep trying. Is there a means for a UAW factory to decide they no longer wish to be represented and vote the union out?
- Lorenzo The Longshoreman/philosopher Eri Hoffer postulated "Every great cause begins as a movement, becomes a business, and ends up as a racket." That pretty much describes the progression of the United Auto Workers since World War II, so if THEY are the union, the answer is 'no'.
- Redapple2 I think I ve been in 100 plants. ~ 20 in Mexico. ~10 Europe. Balance usa. About 1/2 nonunion. I supervised UAW skilled trades guys at GM Powertrain for 6 years. I know the answer.PS- you do know GM products - sales weighted - average about 40% USA-Canada Content.
- Jrhurren Unions and ownership need to work towards the common good together. Shawn Fain is a clown who would love to drive the companies out of business (or offshored) just to claim victory.
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It's not running out, it's cost of current supply (20 years ago 3/5th's of the world's population was riding bikes (India and China)or public transit, (the soviet block countries weren't known for mass-car ownership, but SU was 2nd or 3rd largest exporter of Oil at the time)), those 3 billion people are driving or want to drive soon. Oil was around $10/barrel in 1991, this was saudi crude, easiest to get at in the world (What is $/barrel now during a world recession?). So that leads to next part of problem, cost of future demand as population continues to increase at rate that earth can't sustain (China's one child was more than compensated by India's 9 or 10 child policy) and this population boom is taking place in east asia, not some rat holes (sorry for use of term, but genocide only seems to matter to the world when it takes place in europe or a country with resources we was) in africa, these people can and will buy cars.
Pretty funny that a right-wing Republican is siding with Toyota and complaining about CAFE standards not going far enough for light-trucks. Also pretty funny about Toyota complainging about domestic "homerism." The domestics have to meet the same CAFE standards as Toyota when it comes to cars and light trucks; it's not their fault if Toyota doesn't sell as many light trucks.