While You Were Sleeping: March 30th, 2015
March 30th, 2015 9:26 AM
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Did the EPA bluff its way into getting automakers to agree to ambitious fuel efficiency targets?
- The EPA proposed what they thought were a series of unrealistic fuel economy targets – and got them.
- Volvo will build a plant in the United States.
- Honda builds its 7 millionth car in Canada.
- GM’s closure of the Oshawa plant would have a devastating effect on Ontario’s economy.
- CARB considers a push for plug-in hybrids.
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I'm more interested in the first story, but the second story is interesting, Volvos sales are so minuscule it's hard not to imagine this is more for Future-proofing Geely.
It's Volvo's last gasp in the US market, but possibly Geely's first toehold for building Chinese cars in the US. $500 million doesn't sound like enough money to build a car plant. In any case, if they can't drop prices, improve quality, and expand the lineup, this plant will only slow their demise. Also, if they're building the plant to reduce shipping costs, how do they expect to export these vehicles to other markets? Are non-US customers willing to pay more?
Re: Oshawa. I thought the heart of the problem was the strong Canadian dollar making it expensive to manufacture there, but Chrysler seems to be staying in Windsor and Ford in Oakville. Building cars in Oshawa goes back before General Motors. McLaughlin was an independent company before they were absorbed by GM.
Re: EPA Is it the role of government agencies to lie to businesses as a negotiating tactic? Shouldn't government agencies like the EPA be, you know, honest?