Sunday, February 8, 2009

MPG Standards May Hurt Automakers

Here are the two articles I used.
Cnet news: http://news.cnet.com/8301-10784_3-9733435-7.html

Fox News: http://www.foxnews.com/story/0,2933,477490,00.html?sPage=fnc/scitech/foxcarreport

Watching gas prices rise rapidly back in 2007 the U.S. government acted and proposed a bill to raise mpg standards drastically. The bill passed in the House in 2007 and then later through the senate. It was left for President Bush but he decided against doing anything with it and left it for the Obama administration to decide on. Though Automakers have until the model year 2011 to incorporate these standards into their cars, SUV’s, and trucks. This is a very short window considering most auto companies start planning future models several years in advance of when they actually go into production. It is the largest increase in fuel economy standards since 1975. By 2020 the average mpg for an automakers fleet of cars and trucks must be 35mpg; right now the standard is 25mpg. There was tax incentives included if automakers comply but they were taken off the bill. It is coming under much scrutiny from auto lobbyists from GM, Ford, and Chrysler also known as the big three as well as republicans. Lately with their financial troubles and the bailout, times are still hard on theses companies. Having to comply with such strict standards so quickly can possibly cause the company to collapse even further possibly even for good. It would have to be a huge turnaround I think may prove to be too much should the bill be passed. While I believe these standards are necessary in the long run I think automakers should have more time to be able to implement theses standards. Some companies may have a very hard time trying to meet theses standards. Models will need to be dropped in some cases and others totally reworked. In the long run theses will help our dependence on foreign fuel as well as help clean up the environment which is always a necessity we just need to give automakers a little more time.



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