CAFE is too slow, let's go for faster gains
To meet today's CAFE rules, automakers have to sell hybrids,
plug-ins, battery electrics, and even fuel cell cars. And yet, car
buyers the world over are largely shunning these powertrains. They
account for less than 3 percent of sales. There's a real disconnect
between what the regulators want and what the public is buying.
That disconnect is likely to grow. The CAFE standards really ramp up after 2017 and that's going to send car prices
up sharply. Most car buyers will be motivated to hold onto their
existing cars longer, meaning it will take even longer to turn the fleet
over.
Next year automakers and regulators will sit down to review CAFE to
determine if those rules need to be modified. I think a change is
needed. The current strategy is not working to plan. Doubling down on
that strategy is not going to change buyer behavior. Why not come up
with an approach that will cost a lot less money and produce results a
whole lot sooner?
(AutoBlog.com)
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