No to New Fuel Economy Standards: Consumer Choice, Not Congress … - The National Center for Public Policy Research

The legislation differs from previous fuel economy standards in that it would apply to both passenger cars and "light trucks" — a category of vehicle that includes pick-ups, SUVs and minivans — and which has up to now been held to a separate (and less stringent) fuel economy standard of 21. As a result, Markey-Platts would disproportionately hurt American car companies, which have their profit centers in large pick-ups and SUVs — while giving a competitive leg-up to imports, which make most of their money selling smaller, inherently more economical passenger cars. And if the market plays its trump card and simply decides to say "thanks, but no" — electing not to buy these more efficient but also more expensive vehicles — it will mean reduced shareholder value and ultimately, plant closings and job losses for the auto industry. Even a relatively small decrease in demand for new vehicles — say 5 percent or so — could be absolutely devastating to an already shaky industry, with American brands suffering the most. read more

[Tags], vehicles, fuel, markeyplatts, mpg, vehicle, fuel economy[/Tags]

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