The news that President Obama is looking into allowing California to increase fuel efficiency standards for cars has prompted much discussion about whether the Federal Government should be placing environmental demands on the car industry given its economic woes.
As could perhaps be expected, there are noises from the industry that given the severe financial strains it is under, such policies would be something of an unwelcome burden. General Motors, which has announced another 2,000 job losses at plants in Michigan and Ohio, released a statement giving qualified support, stating that Obama’s policies would have to take into account “the development pace of new technologies, alternative fuels, and market and economic factors.”
Of course, the reality is that it will need states like California, with Federal assistance, to force the pace of introducing fuel efficiency standards. Indeed, the car industry’s economic malaise actually provides a golden opportunity for much needed restructuring to enable innovation for improved fuel economy. Contrary to General Motors’ statement, there actually needs to be a concerted effort – fuel efficiency standards are one element to be complemented by information and incentives to shift consumer demand and the wider market as well as re-tooling the industry. All these are key components of the new ‘50 by 50’ global fuel economy initiative.
For further details on ‘50 by 50’ click here >
For the California proposal click here >