Fuel-saving mandate drives a hard bargain for Detroit
This article discusses the pros and cons of deregulation of the corporate average fuel efficiency (CAFE) program, which was developed in the 1970s as a solution to the problems of fuel shortages and rising fuel costs. The CAFE program is administered by the DOT and National Highway Traffic Safety Administration. Detroit automakers state that the CAFE program forces the decline of larger, safer cars in lieu of smaller more fuel efficient models, therefore eliminating jobs for Americans as the smaller cars are foreign-made. The automakers and several Washington lobbies want a relaxation or even elimination of these regulations as it will increase jobs in America, increase safety, and encourage competition in the larger car markets, as the regulations drive the cost to produce larger cars up. The opponents to the easing of standards want the regulations doubled as it will lead to savings to the consumer for reduced gasoline consumption, decreased reliance on petroleum imports, environmental protection, and more jobs. The DOT is holding hearing on its latest proposal to ease efficiency standards for 1989-1990, and bills to repeal the law are pending in Congress.
- OSTI ID:
- 6649572
- Journal Information:
- Insight; (USA), Vol. 4:38; ISSN 0884-9285
- Country of Publication:
- United States
- Language:
- English
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Related Subjects
AUTOMOTIVE INDUSTRY
REGULATIONS
AUTOMOBILES
ENERGY EFFICIENCY STANDARDS
MARKETING
US DOT
INDUSTRY
NATIONAL ORGANIZATIONS
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US ORGANIZATIONS
VEHICLES
320203* - Energy Conservation
Consumption
& Utilization- Transportation- Land & Roadway