Detroit Should Support Obama’s Efficiency and Emissions Laws (But They Won’t)
Not surprisingly, automotive industry groups expressed opposition on Monday to President Obama’s plan to increase vehicle efficiency laws at both the state and federal levels. The opposition was generally expressed in the standard “this is too costly” language, with a dose of “in these harsh economic times” thrown in for good measure.
But we’ve heard this a thousand times before. Of course it is costly to meet new efficiency standards, and of course times are especially difficult right now. But given that automakers always warn that regulations will put them out of business and cost jobs, they have questionable credibility in this debate.
In fact, it is the Detroit automakers who should be welcoming these across-the-board standards. One of the risks stemming from the bailout was that Congress would make Detroit build smaller cars, only to see foreign automakers scoop up the still robust S.U.V. market. By imposing efficiency standards on all carmakers, the domestics will not be at a competitive disadvantage to the foreigns.
The history of American corporate regulation has generally been that it is easier to fight standards than to meet them. And the history of American politics has generally been that it is easier to cave to lobbyists and political winds than to do the right thing.
If Obama is going to fundamentally change the way we do things, not backing down from his plan announced on Monday is key. The Detroit automakers had a giant supporter in Obama during their pursuit of bailout money last year. GM and Chrysler are probably in business today thanks in large part to him. Now it is time for them to be responsible and figure out how to meet these new standards, not how to shoot them down.
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Comments
One Comment on Detroit Should Support Obama’s Efficiency and Emissions Laws (But They Won’t)
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Imee on
Tue, 27th Jan 2009 10:44 pm
i believe that too. two of my aunts reside in michigan, and i keep hearing from them how depleted and suffering the state is because of this. obama has a good and steady plan in my opinion, he just needs the support from the people.
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