Trump expected to rollback CAFE March 31st.

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Thread: Trump expected to rollback CAFE March 31st.

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    Trump expected to rollback CAFE March 31st.

    https://www.caranddriver.com/news/a3...s_o39JVKIGMjXc


    On Tuesday, March 31, President Trump is expected to issue final rules rolling back the fuel-efficiency standards set during the Obama administration.
    The new standards will require automaker fleets to average 40 mpg by 2025 instead of 54 mpg.
    Twenty states are expected to fight the ruling in court, creating uncertainty for the automotive world.


    The Trump administration has been itching to roll back Obama-era fuel efficiency standards. According to the New York Times, the feds will issue final rules tomorrow, which were drawn up by the Department of Transportation and the EPA. When that happens, it is expected to start a chain reaction of court cases that could remain unresolved for years and put automakers in a sort of limbo as they try to determine how to navigate their vehicle road maps.

    When Trump took office, automakers urged him to ease the Obama-era standards enacted in 2012 that required automakers to increase efficiency standards by approximately 5 percent per year until 2025. The industry hoped to reduce that to 2.4 percent. It was a goal that automakers were already set to accomplish without regulations. Instead, Trump’s rule would reduce the efficiency gains to 1.5 percent a year.

    The ruling will also strip California of its ability to set its own standard. The state was issued a waiver under the 1970 Clean Air Act that allowed it to set its own rules. Trump wants the EPA to strip the state of that power. That has triggered lawsuits from California, which wants control over how pollution is emitted on its roads, and other states that follow the Golden State's standards. California, of course, is the country's most populous state and a huge market for automakers.

    These suits could end up being presented in front of the Supreme Court and could take years to sort out. Regardless of the outcome, it creates uncertainty for automakers. With both the current California standards and Trump standards, the companies could end up with two vastly different versions of the same car.

    Some automakers have already chosen a side. Volkswagen, Ford, BMW, and Honda have publicly opted to strike a deal with California to stick with the state’s more stringent emissions standards. That immediately triggered an anti-trust investigation by the Justice Department that has since been dropped.

    The Trump administration has cited lower vehicle prices as the reason to lower emissions standards. Unfortunately, an internal White House cost analysis showed that while consumers could save up to $1000 on a purchase, their refueling costs would increase by an average of $1400.

    Those numbers were before the cost of oil plummeted. But it’s unlikely the current price at the pump will stay this low forever. The low-mpg car purchased today could cost big money to refuel in the future.

    So while the Trump administration will likely announce its final fuel efficiency standards ruling tomorrow, it’s going to be a while before any of us knows what the actual fleetwide mpg will have to be in 2025.
    Last edited by Z284ever; 03-30-2020 at 08:39 PM.
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    Re: Trump expected to rollback CAFE March 31st.

    Hopefully, this saves the Camaro

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    Re: Trump expected to rollback CAFE March 31st.

    Coincides nicely with buck 'n half gas!!
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    Re: Trump expected to rollback CAFE March 31st.

    So GM was supposed to reveal the Lyriq EV two days after this rollback, and while it was fresh in the news.

    Quote Originally Posted by mbukukanyau View Post
    Hopefully, this saves the Camaro
    Which Camaro?


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    Re: Trump expected to rollback CAFE March 31st.

    An impossible 54 MPG standard was designed for one thing, to force the peasants into electrics no matter how they thought about it or how the supposedly free enterprise system works.
    Following the EU over the cliff, Soviet style Five Year Plan Central Planners, what could possibly go wrong?
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    Re: Trump expected to rollback CAFE March 31st.

    Quote Originally Posted by Neanderthal View Post
    An impossible 54 MPG standard was designed for one thing, to force the peasants into electrics no matter how they thought about it or how the supposedly free enterprise system works.
    Following the EU over the cliff, Soviet style Five Year Plan Central Planners, what could possibly go wrong?

    Exactly right! Some OEMs will fight this, because they want to design one car for the Chicoms and then ram that down the throats of US consumers.
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    Re: Trump expected to rollback CAFE March 31st.

    6.6L Camaro Seven for all my friends! I wish!
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    Re: Trump expected to rollback CAFE March 31st.

    CAFE ought to be abolished entirely. Should the U.S. really desire to reduce petroleum use, Congress should increase the federal excise tax on gasoline and diesel fuel.

    This article from Tim Worstall was written in 2013, but is still relevant: A Gas Tax Is Much, Much, More Efficient Than The CAFE Standards So Why Have We The CAFE Standards?

    And of course, Bob Lutz' wisdom:

    Last edited by gkr778; 03-31-2020 at 08:02 AM.
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    Re: Trump expected to rollback CAFE March 31st.

    Quote Originally Posted by gkr778 View Post
    CAFE ought to be abolished entirely. Should the U.S. really desire to reduce petroleum use, Congress should increase the federal excise tax on gasoline and diesel fuel.

    This article from Tim Worstall was written in 2013, but is still relevant: A Gas Tax Is Much, Much, More Efficient Than The CAFE Standards So Why Have We The CAFE Standards?

    And of course, Bob Lutz' wisdom:

    Hahahaaa! The mental image I got is this would be the equivalent of "men's speedo day at the beach" with a bunch of overweight people trying to shoehorn themselves into way to small clothes. We'd be all walking around with our pants split open after bending over to pick up the Dorito that was just dropped.

    I'm certain Bernie is already adding this to his platform.

    On a serious note, be careful of what you wish for. Europe's laws have resulted in small cars with tiny engines, no hulking pickup trucks or SUV's nor V8 Camaro/Mustang/Charger at a semi-reasonable cost. I'd assume if we switch regulation/taxing methods our vehicle market will ultimately resemble Europe's.

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    Re: Trump expected to rollback CAFE March 31st.

    Abolish CAFE, bump up the gas tax an amount equivalent to the 1995 (think that was the last one) increase indexed to inflation, do so annually, and send it directly to the federal highway fund with no hands allowed in the cookie jar so it is used for infrastructure improvement.
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    Re: Trump expected to rollback CAFE March 31st.

    Quote Originally Posted by NHRATA01 View Post
    Abolish CAFE, bump up the gas tax an amount equivalent to the 1995 (think that was the last one) increase indexed to inflation, do so annually, and send it directly to the federal highway fund with no hands allowed in the cookie jar so it is used for infrastructure improvement.
    +1
    Perfectly stated, NHRATA01.
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    Re: Trump expected to rollback CAFE March 31st.

    Quote Originally Posted by gkr778 View Post
    CAFE ought to be abolished entirely. Should the U.S. really desire to reduce petroleum use, Congress should increase the federal excise tax on gasoline and diesel fuel.

    This article from Tim Worstall was written in 2013, but is still relevant: A Gas Tax Is Much, Much, More Efficient Than The CAFE Standards So Why Have We The CAFE Standards?

    And of course, Bob Lutz' wisdom:

    I think the analogy is off, a more appropriate one is like fighting obesity by requiring food manufacturers to reduce sugar or calories or something.

    I do agree with the overall premise though. A gas tax would be a much better approach in theory. I say "in theory" because, in reality, it would never actually work given how unpopular taxes (or tax increases) are in the US.
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    Re: Trump expected to rollback CAFE March 31st.

    Quote Originally Posted by emh View Post
    I do agree with the overall premise though. A gas tax would be a much better approach in theory. I say "in theory" because, in reality, it would never actually work given how unpopular taxes (or tax increases) are in the US.
    Good points emh. Interestingly, the same Trump administration that spearheaded the rollback of CAFE standards via "The Safer Affordable Fuel Efficient (SAFE) Vehicles Proposed Rule for Model Years 2021-2026" also imposed some of the most significant tax increases in recent U.S. history in terms of tariffs.

    And these new and increased tariffs are far more onerous to American citizens and businesses than NHRATA01's proposal in post #10. So maybe a gas tax increase is politically possible after all.
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    Re: Trump expected to rollback CAFE March 31st.

    Quote Originally Posted by gkr778 View Post
    Good points emh. Interestingly, the same Trump administration that spearheaded the rollback of CAFE standards via "The Safer Affordable Fuel Efficient (SAFE) Vehicles Proposed Rule for Model Years 2021-2026" also imposed some of the most significant tax increases in recent U.S. history in terms of tariffs.

    And these new and increased tariffs are far more onerous to American citizens and businesses than NHRATA01's proposal in post #10. So maybe a gas tax increase is politically possible after all.
    Very true. As long it's not called a "tax", most folks won't figure it out.

    Wasn't it Reagan who (at least informally) called it a "usage fee" or something when he raised gas taxes?
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    Re: Trump expected to rollback CAFE March 31st.

    Quote Originally Posted by gkr778 View Post
    Good points emh. Interestingly, the same Trump administration that spearheaded the rollback of CAFE standards via "The Safer Affordable Fuel Efficient (SAFE) Vehicles Proposed Rule for Model Years 2021-2026" also imposed some of the most significant tax increases in recent U.S. history in terms of tariffs.

    And these new and increased tariffs are far more onerous to American citizens and businesses than NHRATA01's proposal in post #10. So maybe a gas tax increase is politically possible after all.
    Right, a gas tax always hits the pocketbook in an obvious way, because most people are buying gas on a weekly basis give or take. CAFE lets the politicians get away from the brand of that scarlet letter and instead put it on the manufacturers. Who then pass along the costs to consumers via higher prices and then it is only noted once ever 3, 5, 10 years when (and if) one buys a new car.

    Now, most Americans realize our infrastructure is in poor shape. If you have a well delivered message by leadership explaining yes, the gas tax is going up, but it hasn't moved in 25 years and it will directly fund infrastructure improvement that will benefit you...well the average voter will grumble somewhat but at least be more apt to accept it. Especially as it seems we may have a "new normal" with respect to a cap on oil/gas prices between fracking and the further electrification of transportation. I'm no clairvoyant but I suspect $147/bbl oil from 2008 is probably an extremely remote possibility. Perhaps even craft the legislation such that the gas tax can be temporarily suspended by executive order at X dollars per gallon in the event of a price hike from some sort of supply crisis.
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