Prince Valiant
01-26-2009, 11:55 AM
As if times weren't hard enough for the Big 2 and chrysler:
Obama's order will likely toughen auto emissions standards (http://www.nytimes.com/2009/01/27/us/politics/27calif.html)
Basically under the old rules, California was kept in check and wasn't allowed to deviate too sharply from the EPA. NOW, they'll have free reign to administer their own standards (and that of 13 other states that mirror the rules CA sets). CA has already been granted waivers for a number of emissions controls as it relates to smog, but now will also be given carte blanche to regulate Carbon dioxide. Only way one can accomplish this is via increased fuel efficiency. Think the 35mpg cafe standards were tough? It hasn't even been estimated the impact CA's proposed rules will cause.
Now, some state's right advocate might say "great...more control to the state"; I mean, that's "conservative" right? But, this is simply a ploy to enforce stricter rules that the rest of the nation would not agree too, hence it wasn't passed on the national level. Now, we are essentially being regulated by a body (the CA government), that has NO accountability to us. The Bush administration was VERY wise to deny CA this ability.
The problem is, but giving these 14 states this ability (one of which is the most populous state by far), it effects the whole industry on a large scale...CA itself is the world's 5th largest economy and therefore one of the largest consumers of cars.
Will it effect the auto-industry? Of course! As it stands, they'll have to rush resources (of which they have very little) to retool and meet the escalating standards that will begin enforcement in 2011. These aren't zero-cost actions...therefore, less money will be available in the future to making competitive cars/trucks...companies such as toyota and Honda that have cash-on-hand will be able to more easily shrug off the cost. Companies that are running on fumes (Ford/GM/Chrysler) may well find the burden to great to meet the standards AND field competitive products...and guess which of the two is required by law?
Even if companies say "Okay, we'll just treat those 14 states differently", then how does one do this? Stop selling trucks in those states? Sell only smaller, less profitable vehicles? It's unknown at this point. What picks up the slack? Smaller cargo vehicles already produced by Japanese and European competitors? It seems anyway you shake it, it's not good.
Obama's order will likely toughen auto emissions standards (http://www.nytimes.com/2009/01/27/us/politics/27calif.html)
Basically under the old rules, California was kept in check and wasn't allowed to deviate too sharply from the EPA. NOW, they'll have free reign to administer their own standards (and that of 13 other states that mirror the rules CA sets). CA has already been granted waivers for a number of emissions controls as it relates to smog, but now will also be given carte blanche to regulate Carbon dioxide. Only way one can accomplish this is via increased fuel efficiency. Think the 35mpg cafe standards were tough? It hasn't even been estimated the impact CA's proposed rules will cause.
Now, some state's right advocate might say "great...more control to the state"; I mean, that's "conservative" right? But, this is simply a ploy to enforce stricter rules that the rest of the nation would not agree too, hence it wasn't passed on the national level. Now, we are essentially being regulated by a body (the CA government), that has NO accountability to us. The Bush administration was VERY wise to deny CA this ability.
The problem is, but giving these 14 states this ability (one of which is the most populous state by far), it effects the whole industry on a large scale...CA itself is the world's 5th largest economy and therefore one of the largest consumers of cars.
Will it effect the auto-industry? Of course! As it stands, they'll have to rush resources (of which they have very little) to retool and meet the escalating standards that will begin enforcement in 2011. These aren't zero-cost actions...therefore, less money will be available in the future to making competitive cars/trucks...companies such as toyota and Honda that have cash-on-hand will be able to more easily shrug off the cost. Companies that are running on fumes (Ford/GM/Chrysler) may well find the burden to great to meet the standards AND field competitive products...and guess which of the two is required by law?
Even if companies say "Okay, we'll just treat those 14 states differently", then how does one do this? Stop selling trucks in those states? Sell only smaller, less profitable vehicles? It's unknown at this point. What picks up the slack? Smaller cargo vehicles already produced by Japanese and European competitors? It seems anyway you shake it, it's not good.