What is CAFE?
Corporate AVERAGE fuel economy.
This means for every 20mpg car you sell, you need to sell a 60mpg car to obtain an AVERAGE fuel economy of 40mpg.
Now setting the 2025 CAFE at 54 or whatever is going to be a very nice trick, since there are so few that can even do 40 MPG on the highway now.
define 52mpg. My car is more efficient than a Prius at 60mph+.
Yeah, that is an average of city and highway. My new 2012 explorer is rated at 20mpg.
18 city and 25 highway.
How do you go with high performance cars and trucks, do they incur an extra tax?
Yeah, that is how the US SUV was born. Cars had to meet CAFE, but trucks and vans did not. Suddenly the idea of driving a modified VAN(mini-van) or Truck(suburban) suddenly had great appeal. At the height of the craze, I think cars as defined by CAFE only made something like 30% of vehicles sold in the US.
Now they are looking to include SUV and light trucks in the new CAFE standard (close the loophole)
So, almost 40 years ago, the government attempted to "FIX" the car market.
Didn't work then. Has never worked in any free market in the history of the world.
But its different now because we mean well. Lets do it again.
Insanity....just drives me crazy.
OK while I'm ranting....
One more thing....The media is constantly complaining about the rich not paying taxes, and the gulf between the poor/low middle class becoming wider...
Some of this is true. One way to make sure the poor stay poor is to make it impossible for them to work.
The recent Cash for clunkers program took millions of working low cost cars off the market permanently. The average price for a used car went from $5000 to now something well above $10,000. This was a tax on the poor. In the United States, you can't hold a job without having a car. The environmentalist just made the hurdle to getting out of poverty at least twice as high. Now, add $8000 to $20,000 to the price of a new car to meet impossible diminishing return gas efficiency goals. Who do you punish? Not me, I drive a company car. I can't travel and make sales without one. So whatever the cost, it will go into the price of my product and ultimately get passed on to the end consumer. The person who gets hammered? The near poor, or actual poor (not as likely because the actual poor person will be forced to stay on government assistance.)
I just have never understood where people think government largess, regulation and inefficiency get paid by someone else. It always is paid for by the entire economy. It is always passed through to whatever you buy, or wish you could afford to buy.
The "working poor" will always pay 10X for every "free" dollar they get from the government.
If people could just get this through their head...they would run screaming in terror whenever anyone said:
"I'm from the government, and I'm here to help you.-"