TTAC Called It: "Two Fleet Rule" Major CAFE Battleground
Right from the start of the bun fight debate over raising Corporate Average Fuel Economy (CAFE) standards, TTAC has stressed that one of the central issues is the so-called "Two Fleet" rule. As it currently stands, there are two CAFE mpg standards: one for domestically-produced automobiles and one for imported vehicles. If the Two Fleet rule is eliminated, if CAFE requirements are based on an automaker's entire lineup regardless of its origin, The Big 2.8 will shut down its highly unprofitable U.S. small car production. Needless to say, this has not escaped the attention of The United Auto Workers. The Detroit Free Press reports that the UAW has read Representative Edward Markey's revised CAFE legislation and discovered some hidden language killing the Two Fleet rule. Pleased with this they are not. "The UAW deeply regrets that, in a desperate effort to gain a few votes, Representative Markey apparently decided to abandon his past position on this critically important jobs issue," UAW legislative director Alan Reuther said. "The revised Markey proposal would enable auto manufacturers to offshore all of their small-car production, and would thereby threaten the jobs of thousands of American workers." We're not sure how closing unprofitable American factories would gain any votes for Rep. Markey, but it sure would make some American auto execs happy.
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The UAW needs to get real. This is a salvage operation. They can abandon the 2 fleet rule, or they can abandon the 2.8, one of those is going.