Friday, January 02, 2009

CAFE Burden?

Holman W. Jenkins Jr. says Corporate Average Fuel Economy rules have an unequal effect on Detroit versis foreign automakers. An excerpt:

The fuel-economy rules apply equally to foreign brands, of course, some of which also specialize in big, powerful vehicles. But they afford themselves an out. BMW paid $230 million in CAFE fines from 1983 to 2007 to avoid building small cars at a loss to please Washington. Volvo paid $56 million. Daimler paid $55 million.

Why don't the Big Three take this out? Explains the Government Accountability Office, because they fear the political repercussions of being tagged with "unlawful conduct."

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