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CAFE (Fuel Efficiency) Standards for Passenger Cars and Light Trucks

From , former About.com Guide

Auto Industry

The leading group opposing changes in the CAFE standard is the automotive industry. The classic argument is that the trade off for fuel efficiency is safety, because cars must be made lighter and smaller. The industry also contends that the costs of re-engineering cars to make them more fuel efficient is prohibitive.

In 1991, the conservative Heritage Foundation contended that increased CAFE standards would "throw tens of thousands of American automakers out of their jobs."

According to the Department of Labor, the auto sector "creates 6.6 million direct and spin-off jobs and produces $243 billion in payroll compensation, or 5.6% of private sector compensation." And according to the Auto Alliance, in 1999, the industy produced a record 13 million vehicles; the previous record was in 1978.

Heritage also asserted "that CAFE kills" because the "easiest way to increase a vehicle's fuel efficiency" ... "is to reduce the vehicle's weight by reducing its size and its steel content." The National Academy of Sciences concludes that in 1993 there were probably an additional 1300-2600 traffic fatalities. There were 40,115 fatalities in 1993; 17,461 were alcohol-related (CDC). However, NHSTA crash data show that a 2005 Jeep Liberty is safer than its 1991 comparable, a Cherokee.

The Detroit News contends, in opposing the Bush proposal, that mileage standards "have little, if any, effect on oil consumption." The editorial asks "what happened when fuel economy improved? Consumers bought bigger vehicles and drove them farther." In other words, sprawl resulted from improved fuel efficiency. The flaw with this argument is that fleet efficiency peaked in 1987; sprawl continues.

Environmentalists

Environmentalists argue that legislative and regulatory measures are the only way that the auto industry will improve fuel efficiency. The CAFE fleet data validate that argument. In addition, the National Academy of Sciences reports that from 1975-1984 technology improvements focused on fuel efficiency; the fleet improved 62 percent with no loss in performance (0-60). However, from 1985-2001, fuel economy was sacrificed while vehicles grew 20 percent heavier NS performance (0-60) grew 25 percent

Also, according the U.S. Environmental Protection Agency (EPA), vehicles with higher fuel economy also reduce global warming pollution.

In May 2003, Detroit Project's Ariana Huffington said, "If today's vehicles averaged 40 mpg, we would save more oil than we import each year from the Persian Gulf. We have the technology to start fixing the problem, but the Big Three in Detroit and their friends in Congress and the White House are blocking the road."

Where It Stands

In July 2001, the National Academy of Sciences (NAS) reported that light trucks, SUVs, minivans, and pickup trucks could reach 28-34 mpg for an additional cost of $1,500-$2,500. According to Harper's, in 2001 automakers made an average of $10,000 on each SUV sold (the range was from $6,500 for a compact SUV like the Toyota RAV4 to $17,000 for a luxury model like the Lincoln Navigator) ; this is 10 times the margin on a sedan or minivan. These numbers question the industry's arguments.

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