Sen. Levin: increase in CAFE standard would kill Chrysler
How did Carl Levin, a Democratic Senator from Michigan, help get the compromise on the upcoming CAFE bill we mentioned this morning? He said yesterday that he would filibuster fuel economy legislation because he says it discriminates against the Big Three domestic automakers. He also said that a requirement that would raise fuel economy standards by 10 mpg over 10 years would put the Chrysler group out of business, according to Automotive News (subs req'd). Let's just state for the record that GM, Chrysler, and Ford are three of Levin's top financial donors (Guardsmark, Inc. is number three), according to the Center for Responsive Politics, so he's going to do pretty much anything to help them. Whether stopping 35 mpg CAFE helps the rest of us doesn't seem to affect Levin's thinking on the issue.
There's lots of good info in the AN article, so head over there if you have a subscription. One other bit that bears mentioning here is that Sen. Tom Carper, D-Del., said warnings from the Big Three about losing money and market share, closing plants and laying off workers just don't cut it any more because they've already taken those steps without higher fuel economy standards.
[Source: Harry Stoffer / Automotive News]
Reader Comments (Page 1 of 1)
shaun 6:29PM (5/04/2007)
Wow! simply Wow!
The federal government has already officially bailed-out Chrysler once. And don't forget that fleet purchases made by the govt are a significant portion of the Big 3's total sales.
Now the government is going to throw Chrysler some more bailout action by holding back higher fuel economy standards!
If the Big 3 can't or won't raise their economy like car companies in the rest of the world then maybe we should let them go under.
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mobile_army_sugical_hospital 9:01PM (5/04/2007)
His office will be getting a call from me first thing Monday morning!
While I may not be his constituent he as a senator is elected to server the public and right now he is doing a disservice.
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TG 10:04PM (5/04/2007)
The Big three have been trying to stave off
the pure EV for a long time.
When America understands that like a regular gas / diesel vehicle, the Hybrid is just as dead in your driveway when there is no gas at all, then the demand for battery only cars will be over powering.
Many a big auto producer will be in for very tough times when the public understands the ICEngine is a liability and not an asset.= TG
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UncleOxidant 11:13PM (5/04/2007)
"He also said that a requirement that would raise fuel economy standards by 10 mpg over 10 years would put the Chrysler group out of business"
then that's it, Chrysler is out of business in 10 years. If they can't get off their asses and improve fleet mileage by 10MPG within 10 years they'll get what they deserve. We're going to have $3.50/gallon gas in the next few weeks (It's already $3.30/gallon where I live), just imagine what gas will cost in 10 years.
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Mohorovicic 1:28AM (5/05/2007)
Yeah well, Lee Iacocca told Nixon that shoulder belts and head restraints were a waste of money and would put Ford out of business.
http://www.pbs.org/wgbh/pages/frontline/shows/rollover/nixon/
Americans don't respect whiners. It is time to man up.
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TG 1:46AM (5/05/2007)
Lee and I. . . Buddies. . .
There is no shortage of oil in the ground, but there is a bottleneck at the Iranian straights of Hormuz and in refinery capacity.
So gas supply security IS dangling by a thread.
Forgotten about the dry gas pumps in the 70s?
Ready to sit in your car listening to the radio for a gas station that has fuel for sale?
You have to love former auto exec Lee Iacocca. From his new book, here's the Iacocca rave-out bouncing around the Web right now:
**Am I the only guy in this country who's fed up with what's happening? Where the hell is our outrage? We should be screaming bloody murder.
We've got a gang of clueless bozos steering our ship of state right over a cliff, we've got corporate gangsters stealing us blind, and we can*t even clean up after a hurricane much less build a *hybrid car. But instead of getting mad, everyone sits around and nods their heads when the politicians say, *Stay the course.*
Stay the course? You've got to be kidding. This is America, not the damned Titanic. I'll give you a sound bite: Throw the bums out!** ...
============ 40MPG.org
So there*s Lee and me, what about you?= TG
PS* Lee meant to say, *Long range* Electric Vehicle.
Remember, Like ordinary cars, with Hybrids its still no gas? = no go!
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susan.kraemer 1:59AM (5/05/2007)
I am amazed that a Democrat is taking this position. Especially one that I otherwise admire,His office will hear from me in the morning too.
Everyone should call the congress switchboard is (202) 224 3121, they put you through to any of them so he doesn't have to be your senator. We're all his district when it comes to global warming.
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susan.kraemer 1:59AM (5/05/2007)
Perhaps it is time to consider a National Public Auto Company, the way that national public radio started in the 20's to be non commercial, in the public interest, not the corporate interest. Of couse now after being co-opted by EXXon Mobile, ADM, etc, (funding Masterpiece Theatre etc) NPR is almost as bad as commercial radio, but thats the idea.
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Nils 7:09AM (5/05/2007)
Where's the American pride when it comes to cars? I used to admire the USA for what they were able to do when they got their minds on something. Don't tell me 10mpg is not doable in 10 years. That's a joke, a lie. 10mpg better mileage won't even bring them near the economy of the other car makers in the world. Hell, I'm an engineer, not even an automotive one, but I happen to know quite a bit bout cars from a past life, and even I could tell them some little secrets bout better mpg that would relaunch their business. WTF are they doing? Jeopardizing thousands of jobs and whining, whining... Maybe it's the right time for them to go under, and when they do, it will be their own fault. If you can't evolve/innovate in your business to be competitive, then you deserve to die (well I mean the company off course...).
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terrence_bethea 3:47PM (5/05/2007)
CAFE isn't going to kill Chrysler . . . but it is the equivalent of DNR.
Levin is indeed being quite myopic. Chrysler is not going to survive as an independent automaker. If they do, it will be a MUCH smaller company with few operations in MI.
The truth is they aren't even competitive in trucks anymore. All they've got is minivans and that's under assault from multiple angles (Odyssey, Sienna, and name your CUV/SAV/crossover).
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Chris M 4:36PM (5/05/2007)
What Sen. Levin and the "Big 3" fail to realize is that the "Big 3" are in trouble because they failed to improve their CAFE and kept pushing big gas guzzlers in the face of rapidly rising fuel prices. The resulting sales slump was inevitable.
Toyota and Honda planned ahead, improved their CAFE well beyond what the law required, and are now reaping the benefits.
Improving CAFE will not kill Chrysler, it just might help save Chrysler.
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PointsNPlugs 7:28AM (5/07/2007)
Would it be a bad thing if the government butted out and imposed no CAFE requirements? Wouldn't it be better for both the consumer and the auto industry if the market itself was allowed to determine what mpg the consumer wants?
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Icon149 9:24AM (5/07/2007)
#12 is absolutly right, mandate CO2 since consumers in general won't shop around. but in the face of rising gas prices, why punish the manufacturers that have typically served people looking for larger heavier automobiles. someone said the japanese saw higher prices coming" no they didn't, they where just late to the SUV game, and had beaten the domestics out of the small car game. they didn't adjust there offerings for CAFE, the market did it for them. chysler makes virtually no small cars. honda makes virually no large cars, why should Chrysler have to make cars that no one wants to buy anyway. let the car companies and market decide, mandate CO2 restiriction, tax the consumer for buying gas guzzlers, but putting pressure on the manufacturers, will just guarantee we can only buy small econoboxes in the future. i want the option of having a 400HP gas guzzler for weekends while i commute in an EV. The market is already shifting away from gas guzzlers, so let it do it! let the manufactures find a niche. Perhaps Chysler will never make small effeicient cars, but that doesn't mean they can't be succesful maketing and selling larger vehicles to those who are willing to pay for the benefits.
just my 2 cents
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Chet 12:30PM (5/07/2007)
CAFE is a bad idea. People don't want to trade performance or luxury or safety or utility for fuel economy because GAS IS STILL CHEAP. They won't buy new cars that make them give up what's available in today's cars.
Adjust the gas-guzzler tax to eliminate the distinction between cars and trucks for non-commercial registrations. And RAISE THE GAS TAX.
Anything else is buck-passing.
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