Monday, November 10, 2008

This seems like low hanging fruit,

or at least much cheaper than bailing out the auto industry.

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.


  1. Most of the Japanese brands are selling hybrids below cost in order to meet CAFE standards.

  2. 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...

    BTW, I am not arguing for additional regulation...