New Obama CAFE standards: myth vs reality

Don't get me wrong, I love President Obama's tough new miles-per-gallon fuel standards, except for him weakening the original ones on pickups somewhat.

But, Detroit knew, given that GM and Chrysler had been bailed out by Washington, that it really couldn't protest. And, they really didn't have much reason too, anyway. Not with all the exemptions:

Over all, the new standards will require a 54.5 miles per gallon corporate average for 2025. That standard will be made more easily achievable by credits that automakers can earn by producing battery-powered vehicles, hybrids and alternative-fuel models. Details of how the credits will work have not yet been made public, but the intention is to encourage the development of cars with far lower emissions.

So, back to the fuel standards. Detroit also accepted because they're really not THAT stringent. "Credits" for battery/hybrid cars will lower them a fair amount. As will alt-fuel cars. In short, GM, especially, is going to flood us with ethanol-burning "flex" vehicles.

Beyond that, his sellout on trucks and SUVs has rightly been protested by Volkswagen. (The truck/SUV increase is only 3.5 percent.)

I was ready to cut Obama a lot of slack on this one.

But, especially until we find out how "tight," or how "loose" all these exemptions are, especially the alt-fuel ones, no way, Jose. The fact that he's sold out on SUVs says enough, doesn't it?

Detroit accepts Obama diktat; why didn't he do similar to Wall Street

Don't get me wrong, I love President Obama's tough new miles-per-gallon fuel standards, except for him weakening the original ones on pickups somewhat.

But, Detroit knew, given that GM and Chrysler had been bailed out by Washington, that it really couldn't protest.

So, why didn't Team Obama do the same to Goddam Sachs, et al.

You know why; this was a rhetorical question.

Needed: A $1/gal federal gas tax hike

That’s the only way to keep gas prices high enough to create a good consumer “pull” to buy the vehicles Obama’s new CAFÉ plans mandate. But, Obama’s probably allergic to that idea.

Now, you need to phase that tax in slowly enough to not crush people’s incomes, but quickly enough it has a real bite. My suggestion is 20 cents a year for five years, starting in 2010.

(Oh, and we need to find some way to index that tax, too.)

Hyundai improves engineering while Big Three whine

Hey, both Obama and McCain, before you give in to the Big Three TittyBabies demands for not only $50bil in loan guarantees, but also their push to loosen last year’s toughening of CAFÉ standards, read this from the Wall Street Journal.

Or, read this, since I found it first, although it’s French.

(Google Translator helps you out)

“The Hyundai group is able to meet by 2015, the standard fuel consumption of 35 miles per gallon (6.7 litres per 100 kilometres) which must apply to the USA in 2020 without recourse to hybrid vehicles,” said Lee Hyun-soon, head of research and development division of the Korean manufacturer.

Well, that’s pretty plain English.

If that’s not good enough for you, Schmuck Talk Express™ and Just.Another.Politician.™, here’s more from that same story.

Hyundai says it can do this by a combination of using more lighter materials, dual valve variable valve timing, and – eight-speed automatics.

Now, Lee’s comments about hybrids aside, Hyundai has a hybrid partnership, in Korea to start and coming here in 2010, with Kia.

I found the general story line referenced in this week’s issue of Gregg Easterbrook’s always-interesting Tuesday Morning Quarterback column at ESPN.

Oh, and the WSJ aside, WHERE is this in the American media?

And, ask me again why I plan on voting Green?

Not all CAFÉ standards are created equal

The new corporate average fuel economy standards passed by Congress last year don’t actually take effect until 2011, but it’s clear that the formerly Big Three have a lot further to go than their Japanese rivals.

Luxury car makers, overall, have even further to go.

For example, Porsche must boost its currently expected 2011 fleet economy by nearly 50 percent or pay federal finds.

Toyota, meanwhile, can afford to become 12 percent more of a gas hog over current projections and still meet federal 2011 requirements.

Also, VW and Subara are penalized for the “footprint” they have in current sales numbers. VW, at least, has indicated it plans to sue.

Joe Barton and Big Three - irony and hypocrisy alert

The picture of global warming denialist Joe Barton (R-Texas) having to trade in a Tahoe for something greener is indeed poetic justice.

Congress has been bearing down to do more about global warming. But a little-noticed amendment to last year’s energy bill has hit especially close to home. It requires House members who lease vehicles through their office budgets to drive cars that emit low levels of greenhouse gases.

Among the victims: Texas Republican Joe L. Barton, who will probably have to give up his Chevy Tahoe, despite his protests that it is made in his district. “I guarantee you my district is not upset that I’m driving a Chevy Tahoe,” he said.

Actually, Joe, no, as someone who lives next door to your district, I can tell you many people in the district are upset that you won’t try to get anything done about TXI cement plant pollution in Midlothian.

The requirement was sought by Rep. Emanuel Cleaver II (D-Mo.), who figured that if his colleagues were serious about reducing greenhouse gas emissions and U.S. dependence on foreign oil, they ought to put their foot where their mouth is.

Only about 130 of the House’s 435 members lease; Senate rules prohibit it.

So, Smokey Joe, you can always buy your Tahoe instead, and pay for it yourself, you freeloader.

Under the legislation, the Environmental Protection Agency will determine which vehicles lawmakers will be allowed to lease, a list that’s expected before the end of the year. Senators are not allowed to use their office budgets for long-term vehicle leases. Lawmakers can seek mileage reimbursement when they use their own vehicles for congressional business.

The EPA’s list could include vehicles such as the Ford Escape Hybrid, the Mercury Mariner Hybrid and the Prius, which received high scores on the EPA's Green Vehicle Guide. The guide rates vehicles on their greenhouse gas emissions on a scale of 0 to 10, with 10 being best.

Meanwhile, the auto industry spent $70 million on lobbying last year, a 20 percent hike from 2006 and largely focused on efforts to kill a fuel economy increase bill.

And, hypocrisy from Michigan Congressman Joe Knollenberg, who wants a Meanwhile, the auto industry spent $1.2 billion bailout for the Formerly Big Three “U.S.” automakers to meet tougher fuel standards.

‘Aggressive’ CAFÉ standard is not

Only under the aegis of the Bush Administration could an increase in fuel economy standards that has no legal teeth for seven years be called “aggressive.”

The nation’s fleet of new cars and trucks will be required to achieve 31.6 miles per gallon by 2015, the Bush administration said Tuesday.

Transportation Department Secretary Mary Peters outlined the plan on Earth Day, setting a schedule that was more aggressive than initially expected by industry officials.

Peters said the proposal was “an aggressive but achievable standard. I think we’ve got something that is going to significantly save fuel and help clean our air.”

Let me do the math for you that Mary Peters didn’t.

The current CAFÉ standard is 27.5 mpg. So, we have an increase of 4.1 mpg over 7 years. That’s a whopping 0.6 mpg per year.

Meanwhile, assuming that the formerly Big Three are wrong in betting on biofuels rather than hybrids, they’re in trouble, ranking last in hybrids. And, the continued lethargy in Detroit could become an ever-bigger self-inflicted wound:

"I think the car companies that decide to do the minimum to comply with the CAFÉ (fuel economy standards) won't be in business by the time that the CAFÉ schedule is over," says Environmental Defense Fund President Fred Krupp.

Dinosaurs, indeed. I mean, how many more employees can the Big Three cut? I don’t care how many new execs Ford brings in to promote car quality, if it ain’t doing car efficiency, it won’t get much traction.