Wednesday, May 20, 2009

Dopey NPR story about the CAFE standards

"It's a very tricky situation," says Marc Cannon, a top executive at AutoNation, the country's biggest car retailer.

Cannon says consumers care about the environment, but they care even more about money. Unless the price of gas is consistently high, Cannon says there just isn't enough demand for the fuel-efficient cars Obama wants manufacturers to build.

"This summer gasoline was $4, and every single automaker was trying to put out fuel-efficient vehicles as fast as they could," Cannon says. "All of a sudden, come December, gasoline drops to $2 and nobody wants fuel-efficient vehicles."

Completely missed the point. The market environment in which consumers switch to/from fuel efficient cars was one without strict CAFE standards. With the standards in place, consumers won't be switching to/from fuel efficient cars -- all the cars will be more fuel efficient (at least all the new ones). That's the whole point of the standard. I don't understand what these paragraphs have to do with anything.

Posted via web from Aught he has to know it with.

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