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Hyundai Genesis, Equus to get 10-speed automatic transmission in 2014

Mark, I'd hate to think that we are talking past each other. I've not suggested that the U.S adopt a European style tax hike on gasoline. Quite the contrary I've been clear that I think we should be able to drill more domestically and buy all we want.

What I have said is that I don't agree with CAFE. I believe that it distorts the market and interferes with consumer choice in particular by limiting access to larger engines and higher performance vehicles (which tend to get lower fuel efficiency scores.) And even with the new trading credits and other mods, the program is so byzantine and unduly controlling that it would make a Russian czar green with envy.

With regard to the difference between Europe and the U.S. I mentioned a fact -- they're Fuel Economy standards are voluntary, ours are not. In fact since 1975 Domestic manufacturers can be held criminally liable in addition to paying civil penalties for failure to attain CAFE targets. Please feel free to check out the Energy and Policy Conservation Act of 1975 to see the facts for yourself.

Additionally there have been considerable actual consequences to the existence of CAFE both past and I predict in the future. Until the Reagan Administration put a freeze on the CAFE level to 27.5 American consumers were faced with some of the least attractive options in the history of the American automobile. That freeze has effectively come to an end with passage of the Energy Independence and Security Act of 2007 and the new CAFE standards announced. The actual fee increased from $5.50 to $5.50 per tenth of a mile. And on July 29, 2011 President Obama announced an historic agreement increasing fuel economy to 54.5 miles per gallon for cars and light-duty trucks by Model Year 2025.

Finally numerous analysts have acknowledged the significant trade-offs in consumer choice that are associated with CAFE. I won't even begin the discussion of the increased number of deaths associated with the push to smaller autos. But I commend to your attention a publication put out by the national academy of sciences "Effectiveness and Impact of CAFE Standards" in which they acknowledged as a finding that "the diversion of car-makers' efforts to improve fuel economy deprived new-car buyers of some amenities they clearly value, such as faster acceleration, greater carrying or towing capacity, and reliability.

So my statement from the beginning was simply I not only do not endorse CAFE, I oppose it. I do not suggest that we replace it with a European style scheme -- I suggest that we discard it. As for economic growth, the NAS study also suggested that there were significant economic costs associated with CAFE and notably with 9% unemployment and stagnant growth perhaps repeal of CAFE and a drill baby drill policy would be one of several viable options to get the economy going.
 
I won't even begin the discussion of the increased number of deaths associated with the push to smaller autos.

Are you saying that the number of deaths has actually risen with increasing numbers of small cars on the road? Because the statistics I've seen show a downward trend. Or are you predicting increased deaths moving forward? If the latter, perhaps it's a matter of improving the design of small cars. Gordon Murray of McLaren has shown off new manufacturing techniques that he says will result in very safe small cars. He's doesn't strike me as the kind of guy that makes empty engineering claims.
 
Mark, I'd hate to think that we are talking past each other. I've not suggested that the U.S adopt a European style tax hike on gasoline. Quite the contrary I've been clear that I think we should be able to drill more domestically and buy all we want.

What I have said is that I don't agree with CAFE. I believe that it distorts the market and interferes with consumer choice in particular by limiting access to larger engines and higher performance vehicles (which tend to get lower fuel efficiency scores.) And even with the new trading credits and other mods, the program is so byzantine and unduly controlling that it would make a Russian czar green with envy.

With regard to the difference between Europe and the U.S. I mentioned a fact -- they're Fuel Economy standards are voluntary, ours are not. In fact since 1975 Domestic manufacturers can be held criminally liable in addition to paying civil penalties for failure to attain CAFE targets. Please feel free to check out the Energy and Policy Conservation Act of 1975 to see the facts for yourself.

Additionally there have been considerable actual consequences to the existence of CAFE both past and I predict in the future. Until the Reagan Administration put a freeze on the CAFE level to 27.5 American consumers were faced with some of the least attractive options in the history of the American automobile. That freeze has effectively come to an end with passage of the Energy Independence and Security Act of 2007 and the new CAFE standards announced. The actual fee increased from $5.50 to $5.50 per tenth of a mile. And on July 29, 2011 President Obama announced an historic agreement increasing fuel economy to 54.5 miles per gallon for cars and light-duty trucks by Model Year 2025.

Finally numerous analysts have acknowledged the significant trade-offs in consumer choice that are associated with CAFE. I won't even begin the discussion of the increased number of deaths associated with the push to smaller autos. But I commend to your attention a publication put out by the national academy of sciences "Effectiveness and Impact of CAFE Standards" in which they acknowledged as a finding that "the diversion of car-makers' efforts to improve fuel economy deprived new-car buyers of some amenities they clearly value, such as faster acceleration, greater carrying or towing capacity, and reliability.

So my statement from the beginning was simply I not only do not endorse CAFE, I oppose it. I do not suggest that we replace it with a European style scheme -- I suggest that we discard it. As for economic growth, the NAS study also suggested that there were significant economic costs associated with CAFE and notably with 9% unemployment and stagnant growth perhaps repeal of CAFE and a drill baby drill policy would be one of several viable options to get the economy going.
I am shocked that you say you are not in favor of increasing taxes on gas to double the price, and reduce demand. Here is the text from your previous post:

I agree. In fact, the CAFE regulations are simply an expression of our political system. Politicians want to be re-elected. By using the CAFE mandates, they get bitched at by the auto companies in hearings that few people pay attention to but the general public doesn't push back. The smarter way is to let Adam Smith's invisible hand move things. How? Simple: massive gas taxes. If there were no CAFE regulations but via taxes your gas cost $5/gal at the pump, think we'd see a change in buyer behavior? :D

But the beauty of a system like that would be that people would be free to make the decision about whether they were willing to pay the tax. They'd vote by what type of car they bought. It's a much more elegant solution than simply mandating a fleet average and having gas guzzler taxes.

Of course that system stands zero chance of being implemented because the outcry from voters would be apocalyptic.
I totally agree with you. Like much of western Europe, we should also have $7-8 per gallon gas. It's the only way we will consume less gas and be less dependent on OPEC.
Of course then I would not have bought the 4.6 :)

Regarding the penalties, please provide some documentation about the criminal offensives you mentioned. Here are some FAQ's from this website:
http://www.nhtsa.gov/cars/rules/cafe/overview.htm

What is the penalty for not meeting CAFE requirements for any given model year (MY)?
The penalty for failing to meet CAFE standards recently increased from $5.00 to $5.50 per tenth of a mile per gallon for each tenth under the target value times the total volume of those vehicles manufactured for a given model year.

Since 1983, manufacturers have paid more than $500 million in civil penalties. Most European manufacturers regularly pay CAFE civil penalties ranging from less than $1 million to more than $20 million annually. Asian and domestic manufacturers have never paid a civil penalty.

For MY 2002, five passenger car fleets including BMW, DaimlerChrysler import, Fiat, Lotus, and Porsche are projected to fail to meet 27.5 mpg passenger car CAFE standard. In addition, two light truck fleets including BMW and Volkswagen will likely fail to meet the light truck CAFE standard of 20.7 mpg. Final Reports for MY 2002 provided by the EPA to NHTSA in mid-calendar year of 2003 may adjust these projections favorably.


What are CAFE credits?
Manufacturers can earn CAFE “credits” to offset deficiencies in their CAFE performances. Specifically, when the average fuel economy of either the passenger car or light truck fleet for a particular model year exceeds the established standard, the manufacturer earns credits. The amount of credit a manufacturer earns is determined by multiplying the tenths of a mile per gallon that the manufacturer exceeded the CAFE standard in that model year by the amount of vehicles they manufactured in that model year. These credits can be applied to any three consecutive model years immediately prior to or subsequent to the model year in which the credits are earned. The credits earned and applied to the model years prior to the model year for which the credits are earned are termed “carry back” credits, while those applied to model years subsequent to the model year in which the credits are earned are known as “carry forward” credits. Failure to exercise carry forward credits within the three years immediately following the year in which they are earned will result in the forfeiture of those credits. Credits cannot be passed between manufacturers or between fleets, e.g., from domestic passenger cars to light trucks.
 
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