Here is an idea that is worth consideration, particularly since
Ford and GM/Opel/Vauxhall currently have over 70 machines in Europe rated by VCA between
42/51 and
58/69.6 mpg(
US/Imperial) combined cycle.
http://www.vcacarfueldata.org.uk/sea...lConSearch.asp
I think everyone agrees that OIL IMPORTS ... are a
NATIONAL SECURITY ISSUE.
Those oil imports take about
$600 BILLION out of the US economy annually at current oil prices
(increasing the US "imbalance" of trade).
Just suppose:
The Det3 would/could petitioned the President (and/or Congress) to waive import, tariffs, safety, and emissions restrictions for a period of 24 (to 36?) months to allow them to
IMPORT and
DOMESTICALLY BUILD production vehicles that achieve
44 mpg(US) and GREATER combined average fuel economy while meeting Euro Step IV Emissions Standards and current Euro Safety Standards for a period not to exceed the waiver duration. During the waiver the auto company's participation in the program is contingent upon a requirement that all SALES after waiver expiration will be US compliant for both emissions and safety. All vehicles sold under the waiver prior to expiration will be "grandfathered".
Note, that
since Oil Imports are a NATIONAL SECURITY ISSUE ... the President could do this with an
Executive Order under the
War Powers Act for extremely quick action. Or, a less expedient option would be to go through the Congressional process.
Once approved, should immediately trigger imports and domestic retooling/production switch-over.
Emissions/safety problem resolution SHOULD ALREADY BE UNDER WAY!
The consumer begins getting access to radically lower fuel consumption rate vehicles (thus providing "fuel cost relief" and operating experience)
while giving auto manufacturers visibility to consumer preferences at no (or very low) development/implementation cost.
This
should immediately reduce the "speculation adder" in both the US and world oil markets in the face of a functioning plan to reduce long term oil consumption in the US (and the World)!
As these vehicles went into use, oil demand should be reduced at a rate related to degree of market penetration and the relative fuel economies of the specific vehicles being displaced (and how they were used).
This, in turn, returns funds to the domestic economy proportional to the reduction in oil imports.
Further, as soon as DOMESTIC auto production facilities start to retool and begin "new" product production,
there should be an increase in US employment. If demand is high for these very low fuel consumption machines, then manufacturing should expand generating more jobs.
Pent up demand could possibly generate sales over 20 million units per year ... IF ... they are not over priced and provide above average quality and reliability.
Note that $600 BILLION currently spent on oil imports would buy about 30 million vehicles PER YEAR ..
HOPEFULLY ALL DOMESTICALLY BUILT!
You will notice that this is NOT framed as a CAFE issue ... but rather as providing the opportunity to choose based on cost of fuel. However, this does NOT preclude use of incentives and disincentives IF appropriate!
Note that funds returned to the economy from oil imports ... should generate almost an equal amount of new Federal and State tax revenue. Simply put, increasing oil import costs have been reducing Federal and State tax revenue since 2002 and is probably over $600 billion per year today.
Keep in mind that if this concept is executed by Executive Order ... it could be signed immediately after the 2009 Inauguration ... before leaving the podium.