I’m not quite sure what to say. The Senate has voted to raise mileage standards to 35 mpg by the year 2020. U.S. auto folks claim it will never happen, as AutoBlog reports.
Is it just me, or are these folks crazy? Gas gas gone up 100% in the last 10 years, and 30% in the last 2 years. By 2020, whether or not you believe in Peak Oil, the price will likely go up considerably, if only because China and India are drastically increasing their demand for oil. And they think that offering sub-35-mpg cars when gas is $5-$6/gallon will keep them in business? Get real. This is long-term planning of the worst kind: long-term planning to go bankrupt.
And by the way, the EPA reports that Toyotas, even the non-hybrids, already get around 35mpg. That means the U.S. auto manufacturers think that 12 years isn’t enough time to become competitive with mileage available today from imports. Gee, talk about American “can-do” ingenuity. And we’re paying these auto CEOs how much money?
If this represents Detroit’s true attitude, let’s just liquidate the companies now and distribute their remaining assets to startups committed to helping us find a long-term transportation solution.