xcel
11-18-2006, 09:29 AM
Reliability, not fuel economy, is why consumers buy cars, trucks. (http://www.detnews.com/apps/pbcs.dll/article?AID=/20061117/OPINION01/611170309/1148/AUTO01)
http://www.cleanmpg.com/photos/data/501/Honda_-_largest_loss_of_FE.jpgDetroit News - Nov. 17, 2006
Increasing fuel economy standards is again being pushed by advocacy groups, despite a clear mandate from consumers that other factors mean more when they go the showroom to buy cars and trucks.
Of course, that won't stop activists who incorrectly think the auto industry hasn't done enough to improve fuel economy, safety or design standards. Most recently, the Consumer Federation of America released a report that said fuel efficiency ratings for nine of 13 automakers has decreased during the past 10 years.
Ford Motor Co. and DaimlerChrysler AG both had increased miles per gallon over that span, and General Motors Corp.'s products were down fleet-wide by half a mile. Much of the declines were attributed to trucks, which have been the staple of profitability for automakers for the past decade and continue to be a significant market because that's what consumers want.
That also helps explain why the Asian automakers fell further and almost universally in this report. Toyota was the only Asian automaker to show an increase in fuel economy, but that likely will suffer as well as the production of its Tundra full-size pickup ramps up.
Fuel Economy Follies – Change between 1996 and 2005 Federal FE standards.
Manufacturer|miles per gallon
Honda|- 2.5
GM|- .5
Ford|+ .7
DaimlerChrysler|+ .7
Toyota|+ 1.5
Source: Consumers Federation
Despite the Consumer Federation's report, automakers aren't backing away from the truck market. Nissan will introduce more large trucks soon, Carlos Ghosn, chief executive of Renault and Nissan, said at the Detroit Economic Club Thursday.
The Big Three, Nissan and other automakers are already working to improve fuel economy for their cars and trucks and will do so as fast as consumers demand it. That's how the standard should be set, not by the government, which has been ineffective at regulating fuel efficiency for 30 years.
The Corporate Average Fuel Economy standards have had the opposite effect of their intent. With each improvement in fuel economy, consumers have driven farther and in larger cars and trucks. Forcing higher artificial market standards on the automakers will increase production costs, which will be passed on to consumers.
And, though when surveyed people say they want better fuel economy, they don't generally buy cars and trucks for that reason.
"They might have concerns about oil dependency, but when they go to the showroom they're not purchasing consistent with that," Tom Libby, an analyst for J.D. Power and Associates' Power Information Network, told The Detroit News. "There has been a strong demand for vehicles that are not known for fuel economy."
And that's precisely why government regulation isn't the answer.
http://www.cleanmpg.com/photos/data/501/Honda_-_largest_loss_of_FE.jpgDetroit News - Nov. 17, 2006
Increasing fuel economy standards is again being pushed by advocacy groups, despite a clear mandate from consumers that other factors mean more when they go the showroom to buy cars and trucks.
Of course, that won't stop activists who incorrectly think the auto industry hasn't done enough to improve fuel economy, safety or design standards. Most recently, the Consumer Federation of America released a report that said fuel efficiency ratings for nine of 13 automakers has decreased during the past 10 years.
Ford Motor Co. and DaimlerChrysler AG both had increased miles per gallon over that span, and General Motors Corp.'s products were down fleet-wide by half a mile. Much of the declines were attributed to trucks, which have been the staple of profitability for automakers for the past decade and continue to be a significant market because that's what consumers want.
That also helps explain why the Asian automakers fell further and almost universally in this report. Toyota was the only Asian automaker to show an increase in fuel economy, but that likely will suffer as well as the production of its Tundra full-size pickup ramps up.
Fuel Economy Follies – Change between 1996 and 2005 Federal FE standards.
Manufacturer|miles per gallon
Honda|- 2.5
GM|- .5
Ford|+ .7
DaimlerChrysler|+ .7
Toyota|+ 1.5
Source: Consumers Federation
Despite the Consumer Federation's report, automakers aren't backing away from the truck market. Nissan will introduce more large trucks soon, Carlos Ghosn, chief executive of Renault and Nissan, said at the Detroit Economic Club Thursday.
The Big Three, Nissan and other automakers are already working to improve fuel economy for their cars and trucks and will do so as fast as consumers demand it. That's how the standard should be set, not by the government, which has been ineffective at regulating fuel efficiency for 30 years.
The Corporate Average Fuel Economy standards have had the opposite effect of their intent. With each improvement in fuel economy, consumers have driven farther and in larger cars and trucks. Forcing higher artificial market standards on the automakers will increase production costs, which will be passed on to consumers.
And, though when surveyed people say they want better fuel economy, they don't generally buy cars and trucks for that reason.
"They might have concerns about oil dependency, but when they go to the showroom they're not purchasing consistent with that," Tom Libby, an analyst for J.D. Power and Associates' Power Information Network, told The Detroit News. "There has been a strong demand for vehicles that are not known for fuel economy."
And that's precisely why government regulation isn't the answer.