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Title: Detroit's total revolution: the fuel crunch and Federal demands speed the shift to smaller models

Journal Article · · Trans. Inst. Mar. Eng.; (United States)
OSTI ID:6308266

A broad survey of the automotive industry is presented, especially the activities of the automakers as they rush to meet by 1985 a series of sweeping and sometimes contradictory Government regulations aimed at improving gas mileage, lowering engine pollution, and improving safety. Barreling head on into the energy crisis that is changing American auto-buying habits, the shocked and angered Detroit auto executives have no choice but to accelerate its pace of change to meet the objectives above. The once seemingly invincible industry (in 1978 produced 15.4M vehicles in the U.S., provided 14M jobs, and generated $100 billion in global sales) is spending staggering sums to comply with the regulations as well as to shrink the highway cruiser and develop new, more-conserving engines for powering it; GM alone will lay out $5 billion in capital spending this year. Economist Colin Loxley of Wharton Econometrics estimates that GM, Ford, and Chrysler will spend about $18 between 1979 and 1985 to reach the regulatory goals. It seems most likely that the costly demands of regulation will weaken competition within the industry. There has been some indication of softening of regulator attitudes; Transportation Secretary Brock Adams recently admitted the companies resources are stretched to meet the standards and raised the possibility of Government allocation of R and D funds, but he stopped short of relaxing the rigorous regulatory schedule.

OSTI ID:
6308266
Journal Information:
Trans. Inst. Mar. Eng.; (United States), Vol. 113:12
Country of Publication:
United States
Language:
English