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Breaking: 54.5 MPG Standard Finalized by Obama Administration

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Scott Orlosky
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Platinum
Re: 54.5 MPG
Scott Orlosky   9/3/2012 5:04:11 PM
Regardless of any particular political agenda, the US populous is "spoiled" with cheap gasoline.  The true cost, as noted below, amounts to about twice the current average price.  The domestic (North American) supply of oil has been increasing over the last four years and the demand has fallen - yet the price increases.  People complain loudly and the government uses the only means it has available (rules and regulations) to respond.  It's an imperfect system - but it does have the affect of focusing development effort.  I fully expect that this is too ambitious a goal and the government will eventually have to backpedal, but we will ultimately end up with cars that make more efficient use of a gallon of gasoline.

Charles Murray
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Blogger
Re: Big changes
Charles Murray   9/5/2012 6:49:57 PM
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Agreed, Rob. The truck strategy won't work on this one.

Rob Spiegel
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Re: Big changes
Rob Spiegel   9/6/2012 12:53:50 PM
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I think that's good news, Chuck. Last time around, the truck exclusion allowed the auto industry to shift its emphasis to getting people into minivans, SUVs and trucks -- all of which consumed more gas than cars even before the CAFE standard. What we've had since then is large vehicles that spend most of their time carting around single drivers.

Charles Murray
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Blogger
Re: Big changes
Charles Murray   9/6/2012 3:31:46 PM
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I should add, Rob, that the vehicles which actually ARE trucks -- for example, the Chevy Silverado pickup -- will have to get 44% better mileage than today. So they will go from 18 to 26 mpg. That's less than the cars, which will need to be bumped up by 70%.

Rob Spiegel
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Blogger
Re: Big changes
Rob Spiegel   9/7/2012 12:32:32 PM
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It will be interesting to see what is considered a truck and what is considered a car, Chuck. Many of the SUVs are as large or larger than trucks. Either way, the mileage will certainly improve. I wonder if the CAFE standards would get repealed in a Romney administration. They probably would. Isn't that what happened last time?

Charles Murray
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Re: Big changes
Charles Murray   9/7/2012 6:27:34 PM
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I don't know if the new CAFE would get repealed under Romney, Rob, but I can say that there's a chance of it being dropped in 2018, no matter who the president is. The automakers supported this rule for two reasons: First, they knew they would have to deal with a separate set of similar laws in states like California, Massachusetts and New York. Second, they wouldn't have supported this rule if it didn't have an escape hatch, or "review period." The review period comes in 2018. If automakers can prove then that it will cost far more than was expected, they may be able to convince lawmakers to soften it or drop it.

Rob Spiegel
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Blogger
Re: Big changes
Rob Spiegel   9/10/2012 12:39:16 PM
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I didn't realize there was an escape hatch, Chuck. Even so, I would guess there will be plenty of innovation to come out of this standard, whether the carmakers are able to hit the target or not.

TomP
User Rank
Iron
Only 54.5 mpg ? !!
TomP   9/19/2012 9:44:09 AM
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Excuse my comment from here in good old England, but the rest of the world already gets much better mpg in real life, plus better performing cars, so why is the US lagging behind?

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