Wednesday, June 20, 2007

What are American Automakers Thinking?

American automakers are still fighting against increases in mileage standards claiming that it will force them to lose money and lay off workers. The last time I checked, they weren't doing so well in either regard as it is. Will years to prepare for a regulated increase from the current 27.5 mpg for cars (which has been in place since 1983) to something in the area of 35 mpg by 2020 really hurt automakers that much? If so, I am curious to hear why that is. It's easy for automakers to simply say that it will cost them, but I'd like to hear how. Yes, I realize it's easy for me, with no knowledge of the auto industry, to feel that it's a feasible undertaking.

It appears a compromise may be in the works, mandating a less aggressive increase.

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