Monday, May 18, 2009
Obama To Launch New Cafe Standards For Bankrupt Auto Industry
"Hope-n-Change" is moving forward to regulate for the first time auto emissions for cars and tucks on the nations roads and highways.
With Chrysler in Bankruptcy and GM expected to join her ailing counterpart soon, will these new cafe standards be the death of the USA auto industry?
On Tuesday, Obama is expected to announce the details for both a reduction in carbon dioxide emissions and a time table for an increase in fuel consumption by adopting California's Mileage Standards a single national mileage rule.
These new regulations may have many unintended consequences including new types of pollution, recycling headaches, and higher consumer costs, according to Tom Ripley writing in Driving Today.
What impact will this have on a struggling auto industry, which will have to retool to comply with Washington's newest cafe standards? Mandating spending billions more for plant upgrades during a recession which Detroit simply does not have.
Related: A New Burden on a Struggling U.S. Economy
The Economic Impact of Waxman-Markey