Thursday, December 27, 2007

Still waiting for fuel efficient cars

When President Bush signed the Renewable Fuels, Consumer Protection, and Energy Efficiency Act of 2007, which will require automakers to make enormous changes in the way they make cars, he also signaled that car buyers will pay up to 15% more for new cars, according to industry analysts.

This should come as no surprise to anyone. We have been paying steadily more for new cars every year anyway. If we can get vehicles that will get better mileage without polluting our air, where’s the problem? It is a plus for the climate and therefore for us.

The automobile industry will have to embrace new technologies and invest billions in new manufacturing, but this is what we have been asking for. Pressure from the influx of foreign made vehicles and the tide of the American public buying those cars instead of American made ones should have forced them to do this years ago.

"It's a huge investment, absolutely," said Michael Stanton, president and CEO of the Association of International Automobile Manufacturers. "The automakers are going to pay for it, but they're going to have to pass some of that cost along to consumers." Again, when have they ever not passed the cost off onto car buyers.

Automakers have fought off efforts to increase the fuel efficiency standard for more than 20 years now, and its about time they face some real facts. Mounting concerns over global warming, rising fuel prices and oil dependence has finally forced them to make some changes. So the industry joined environmentalists and lawmakers to broker a compromise.

When safety devices were forced onto the auto industry they balked at that too. The addition of air bags, traction control and anti-lock brakes forced a change in automobile design and the cost was passed onto the car buying public. We got over it and now wouldn’t buy a car without these features. We’ll get over the inclusion of direct injection, hybrids and turbo diesels too.

The big three automakers, General Motors, Chrysler Group and Ford, said they would meet the standards, what choice do they have?

The industry will go through a major change in engine technology to meet the new standards. Two-thirds of the U.S. fleet will have to change to direct injection. One-third of the total market will be diesel, and half of those will be diesel-electric hybrids. Everyone is pursuing a strategy of smaller engines with direct injection and turbochargers.

They are going to have to start working on these changes right away to make the deadline and the buying public is still waiting.

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