Fuel of disputes Looms Auto Industry
Posted by Cash for Clunkers on April 07th, 2010Car manufacturers face the greatest challenge of 16 years, since the effectiveness of the rules of the taps Senate. As the dispute between the cars and members to continue, the industry is becoming darker.
The ambiguity and rage loom like dark clouds obscured the entire system.
Increasing levels of fuel efficiency in construction has made great progress compared to EBC Redstuff is the execution of Tuesday, the Senate approved an increase of 40 percent over the next ten years.
The Democratic Party has promised to keep the bill, the vote of the Senate sometimes next month. This latter task for all car manufacturers to improve their fleet average fuel economy of 35 miles per gallon by 2020, which is a move that condemns car is not realistic.
The bill was approved unanimously by the Senate Commerce Committee, becoming the first bill passed fuel economy, the barriers since 1991.
This prepared the main arguments of the new rules could lead to tens of millions of billions of dollars in the stadium.
Over the past 6 months, as car manufacturers see the fuel economy, because they are at the foot of the volatility of oil prices in exchange for the land, the war in Iraq, calls for energy independence, as well as growing concern about climate change . These factors contribute to tow away a long time that the Detroit carmakers strive for supporters of stricter standards.
Dave McCurdy, the representatives of the automotive industry trade group General Motors Corporation, Ford Motor Company, Daimler Chrysler, Toyota and other car manufacturers, the EU official said the bill is unrealistic and can not be achieved . “I’m more interested in political statements and gestures at this stage of the game, said:” Kudi, former members of Congress.
“I see no serious progress on legislation. This is not the end of the game. This is the first Council, and have a lot of time to play. ”
How serious?
In order to gauge the seriousness of the debate on fuel economy has become, the ratings service Standard & Poor’s said the auto makers face a constant threat, as the European Union, Japan and the United States take into consideration the recommendations of the budget in order to reduce emissions and improve fuel efficiency.
In a report, Standard & Poor’s, said that “pose a real threat to vehicle manufacturers world-wide financial performance, especially under the pressure of the razor-thin margins.”
From the likes of Alaska, Idaho and the Senator from North Dakota Agriculture reversed in recent months, and forced to sign the fuel economy, despite the fact that the leaders of Detroit Auto has said that these demands could threaten their ability to produce larger vehicles, including trucks, pick-up in rural areas of endemic countries.
For a time, the carmakers in Detroit declined in political influence because they are at the heart of its restructuring plan, involving factory closures and layoffs, while the United Auto Workers union (UAW) in the ranks of Democrats in swing late to soften.
Domestic and foreign vehicle manufacturers may be the best hope for unity.
This is the deputy Dingell offered by the private sector, d for the Dearborn House of Representatives Energy and Commerce Committee Chairman of view, strong. Dingell would certainly be more pressure to act on fuel economy, though she intended to propose a broader bill that calls for other industries to do their part to limit emissions of greenhouse gases.
House Speaker Nancy Pelosi said last Tuesday at the House of Representatives will vote on the proposal for fuel economy before the end of the year
. A number of senators had established successful lobbying of the company to obstruct the fuel efficiency of the liability problem of Pistons.
To reduce emissions of greenhouse gases
At the same time, car manufacturers are working to strengthen their environmental certification. General Motors Corp. Tuesday said it has become the first automaker to join the U. S. Climate Action Partnership – a business and environmental groups to do more to reduce emissions of greenhouse gas requirements.
Ford and DaimlerChrysler said they could also participate.
Automotive accounted for 20 emissions of greenhouse gases in the United States, and has been with the percent of global warming. Improving fuel economy is considered the best way to reduce emissions by one. Car manufacturers warned that it would be very expensive, but if not impossible, to meet the mandates brought on fuel economy.
They said, you can add up to $ 6,000 cost of each car, forcing them to abandon certain market sectors, especially for larger vehicles, Detroit more profitable.
Environmentalists and members of Congress rejected this argument.
Joan Claybrook, Public Citizen, which supports higher fuel economy standards, the head ridiculed as not to require “approved the draft law, actual or fuel economy significantly improved. It also much higher than the manufacturers can easily obtain a variety of techniques to reduce to them. ”
On improving the draft law …
The Commission has also taken credit for saving fuel for the production of flexible fuel vehicles can run on bioethanol E85 or other alternative fuels. “We’re trying to make the bill better,” Mike Stanton said that the chief lobbyist of the International Automobile Manufacturers Association’s.
If Congress wishes to set an arbitrary number, it should establish a “New Milan” to allow regulators to abandon the increase if it is not possible, he said.
U. S. Democratic Senator Carl Levin, D-Detroit, has been actively lobbying his colleagues, but he said the final bill dissatisfaction. “This is a big problem,” said Levin. The Committee made a number of improvements, “which is the right direction for a series of small steps, but there is a long road.”
United Auto Workers and trade organizations, on behalf of car manufacturers in the United States has sent a strong tones, a key Senate committee urged Member States to veto a bill that would significantly improve the standards of savings fuel.
Ailunluse UAW legislative director, said committee chairman Sen. Daniel Inouye, D-Hawaii, the compromise of evidence of leadership committee “is much more extreme than the first version of Senator Dianne Feinstein, the measures proposed in California.”
Reuther warned that the compromise bill could force car manufacturers closing plants and cutting tens of thousands of job opportunities, particularly members of the unions. “The new proposals by the Commission consider the information contained there is absolutely no mechanism to prevent the auto manufacturers are struggling to help this unacceptable economic and victims,” says Reuther.
In his letter of Automobile Manufacturers, which represents General Motors Corp., Ford Motor Company, Daimler Chrysler and Toyota Motor Corporation Union, the bill also known as “extreme” and said that will force manufacturers to vehicles providing don ‘t match the consumer in terms of performance, as functionality and cost.
“If the rules make vehicles more attractive to consumers, vehicle sales will drop, the negative effects of auto dealers, suppliers, automotive production, and the United States economy,” the union.
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