The CAFE rules (clean air standards) require car makers to build small clean cars domestically in order to qualify its "fleet" under the standards.
How dumb is the rule? Chrysler might not be unraveling today if not for the two-fleet rule ... Chrysler has a perfectly salvageable business making trucks, minivans, muscle cars and Jeeps -- doomed only by the lack of enough small, fuel-efficient cars to roll out of a UAW factory with a Chrysler emblem slapped on.
Most of the Japanese brands are selling hybrids below cost in order to meet CAFE standards.ReplyDelete
Come one, Chrysler sucks because of CAFE standards???? Not quite buying it. I'd like to see empirical evidence of the below-cost hybrids to satisfy CAFE argument too...ReplyDelete
BTW, I am not arguing for additional regulation...