Tuesday, December 26, 2006

Increasing CAFE according to GM's Bob Lutz

GM's Bob Lutz is not a fan of increasing CAFE requirements.

"That effectively hands the truck and SUV market over to the imports, particularly the Japanese, who have earned years of accumulated credits from their fleets of formerly very small cars," stated Lutz.

Unfortunately, Mr. Lutz is probably correct. Yet, one must ask why couldn't GM accommodate the market that not only made Honda and Toyota so successful, but that has now - possibly - put them at a serious competitive advantage over American automakers?

Still, Congress has their hands full addressing this problem. Democrats have done a lot of tough talking about increasing America's fleet, efficiency, but will the tough talk end as just that, talk? Will Democrats continue down this path if it means the collapse of the U.S. auto industry, and the loss of tens of thousands of Union jobs, especially with a Presidential election just 2 years away?

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