Is CAFE Good for Detroit?
Story after story frames the issue of a struggling industry that will not survive tough fuel economy standards. However, there is substantial evidence that the domestic auto industry has ignored customers’ demands for fuel economy, and has consistently undervalued the impact of fuel economy on their profit potential.
Our view is that GM is still not prepared to change enough, fast enough to achieve the transformation it needs to make.
Go on . . .
Actually, that’s about it. We don’t get a link to the actual study. Unlike, say, Green Car Congress‘s coverage of a study that says plane travel is less polluting than the Boston Green Line. The assertion is simply that improved fuel economy unlocks new demand for automobiles. Which means “forcing the industry to boost fuel efficiency can help make it more competitive,” to quote the DetN’s paraphrase. To the tune of $3 billion a year in increased gross profits for the “domestic” (did they do well in home ec?) automakers.