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Title: GM Exec Criticizes CAFE Rules
Author: Stacey Wilson
Article:
The Congress is heating fresh environmental rules imbibed in
Corporate Average Fuel Economy (CAFÉ) program. Along with the
warming of the rules is the criticism by Detroit automakers
especially General Motors Corp. Bob Lutz, GMs vice chairman said
that the proposal would effectively hand the truck and SUV
market over to the imports, particularly the Japanese.
Lutz's criticism was posted on a GM blog late Friday. Part of
the comment suggests that GM will fight hard against any
proposal to raise fuel-economy targets by a specific amount.
Early this December, chief executives and retired military
generals clamored for a 4 percent annual increase in standards.
They further added that their aim is significant for energy
security.
GM, more than any other automaker, has expressed its ardent
opinion regarding the matter. The former said CAFÉ rules
controlled what automakers could build without regard for what
customers were willing to buy. Lutz said the proposed increases
would limit GM's ability to build as many larger vehicles as its
customers may demand. Lutz "Season's Rantings" message reflects
GMs intention to focus on pickups and bigger SUVs to improve
profits in North America.
CAFE rules state that automakers earn credits for exceeding the
fuel-economy standards in a model year. Said credits can be
utilized to cover a shortfall in the following three years.
Japanese automakers like Toyota and Honda surpass the standards.
These automakers are famed for manufacturing sophisticated <a
href="http://www.fastbodyparts.com/parts/toyota/">interior OEM
replacement auto parts for Toyota</a> and <a
href="http://www.fastbodyparts.com/parts/honda/">Honda auto body
parts</a>.
Unfortunately, Detroit automakers like GM, Ford and
DaimlerChrysler have already used credits in recent years. <a
href="http://www.fastbodyparts.com/parts/gm/">Auto parts GM</a>
are now focused on boosting SUV and trucks of the automaker.
This is also true with Ford and DaimlerChrysler. The latter is
busy promoting Edge and Mustang.
Lutz noted, The Japanese automakers "have earned years of
accumulated credits from their fleets of formerly very small
cars. They can afford to go bigger, which they're doing now by
the way, and they'd be able to move up and fill the segments
we'd be forced to vacate." He further added, "We don't have any
magic 100-m.p.g. carburetor that we're holding back because
we're in bed with the oil companies. The Japanese government is
spending huge amounts on advanced battery research. It would be
nice if our government would do the same."
About the author:
As a former news correspondent for an auto-related website,
Stacey has gathered extensive knowledge and experience in the
automotive industry. This 34 year old mother of two from Memphis
is a genuine car lover.
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