Tag Archives: Fuel Standards

How good a job is Obama doing running car companies?

Investors Business Daily explains.

Excerpt:

President Obama’s electric car vision is off to a hot start. First the heavily subsidized Chevy Volt started catching fire. Then government-backed Fisker Automotive had to recall all its cars due to a fire hazard.

Late last month, Fisker, the electric car startup that is busy spending its $529 million in Department of Energy loans, announced a recall of its entire fleet of luxury Karmas because of a faulty battery that posed a fire risk.

The battery maker at fault — A123 Systems — is another Obama grantee, having gotten $380 million in taxpayer support to make advanced car batteries.

Fisker says it’s already fixed the problem, but this is just the latest in a series of troubles plaguing the new car company.

Although it once promised to be profitably churning out 1,200 cars a month by now, Fisker has so far sold only about 240 — at a price almost 14% higher than promised. And the more moderately priced electric sedan it says it will build in an abandoned Delaware plant is still nowhere to be seen.

Bad as this is, Fisker’s troubles are just a taste of the expensive and dangerous mess in store for car buyers should Obama succeed in forcing the industry to bend to his green dreams.

In May, a Chevy Volt caught fire three weeks after a government crash test of the car. In follow-up tests in November, a second Volt caught fire after a test crash, and a third began to smoke and emit sparks.

[…]Volt sales came in about 30% below GM’s forecast for 2011 — in a year when overall retail car sales beat industry analyst forecasts by almost 12% — earning the Volt third place on 24/7 Wall Street’s list of worst product flops of 2011.

And that’s despite the substantial tax break to Volt buyers and the hundreds of millions in grant money to its suppliers.

Obama is spending a lot of taxpayer money on his Solyndra-style boondoggles. Taking money away from employers and families and just throwing it in the trash. We are now officially over 100% debt-to-GDP. We are entering a Greece-style debt situation and this dingbat is throwing our money away on Peter Pan energy policies.

Obama’s new fuel economy standards will raise car costs by over $5000

From U.S. News and World Report.

Excerpt:

Within a span of three weeks, President Obama has announced back-to-back new fuel economy standards for passenger vehicles and trucks. New regulations put in place will require a corporate average fuel economy (CAFE) of 54.5 miles per gallon for passenger vehicles by 2025. New standards for trucks will require a 10 to 20 percent increase in fuel efficiency before 2018.

Whether President Obama realizes it or not, fuel efficiency does not come without compromising other aspects of a vehicle. One feature that will undoubtedly be affected by these new rules is vehicle cost.

According to a study conducted by the Center for Automotive Research, the new passenger vehicle standards could eventually cost consumers an additional $5,000-$6,000 for each new vehicle. Even if gas prices rose to $6.00 per gallon, the average American driver may not recoup that huge price increase through fuel savings. Similarly, new rules for trucks are expected to add an additional $1,050 for work trucks and $6,220 for supercab tractors.

One of the most efficient ways to increase the amount of miles a vehicle can travel per gallon of gasoline is to reduce the weight of the vehicle. Therefore, auto manufacturers will be forced to make cars that are smaller and lighter in order to meet President Obama’s new CAFE standards. Far from a win for consumers, this type of government-knows-best policy is the exact opposite of how a market economy functions. Instead of making their own demands, car buyers will be forced to comply with a federal mandate that insists on prioritizing fuel efficiency above all else—safety, comfort, size, and performance all take a back seat. Car buyers will be forced to pay more and have fewer vehicle options to choose from.

Given the fact that this is such an important policy goal for President Obama, it is fair to look at his own driving habits. The president is chauffeured in a vehicle known as The Beast, a 10,000-pound limousine that gets 8 miles to the gallon. In order to achieve maximum safety and security for the president, the vehicle must be extremely heavy which, of course, decreases its fuel efficiency.

Obviously, lighter vehicles are not nearly as safe for families as heavier vehicles, so there will be increases in traffic fatalities as well.

This is consistent with Obama’s desire for equality. Americans are too wealthy – we need to produce less and consume less so that we are more like other nations. Nations like North Korea and Cuba. Naturally, Obama himself will be exempt from these standards, just as he and his family are exempt from Obamacare. Oh, and his union supporters are also getting exemptions from Obamacare in record numbers.