Detroit's big chill

New fuel economy regulations could doom U.S. automakers, says Fortune's Alex Taylor.

NEW YORK (Fortune) -- If turned-off consumers, teed-off union workers and fired-up competitors don't kill off what's left of the U.S. auto industry, then proposed new fuel economy standards may finish the job.

Chrysler officially puts the cost of meeting the proposed rules at $6,700 per vehicle. Unofficially, the moneymen from Cerberus behind the private equity buyout for Chrysler are said to be threatening to walk away from the deal if the new requirements go through. That would probably doom the company.


http://money.cnn.com/2007/06/28/auto...ion=2007062907

 

i see 2 sides to this. yes the boys in detroit should have probably seen this coming and prepared for it. but i also think our wonderful government should help out our automakers a little here too. they want all these economy numbers but what are they doing to help? pushing ethanol? anybody really think that's the answer? an industry that exsists primarily on government subsidies? and even if it were a viable industry the chances of growing enough crops to fuel every car are pretty slight. instead of investing in these pointless endeavors we need to spend our tax dollars on REAL alternative fuel or REAL fuel saving technology. most people in america can't change they're driving habits and most public transportation is a joke. not to mention the recent security issues in my neck of the woods. ppl just don't feel safe on buses. now everybody is crying for higher gas taxes. i for one can't afford that hit and i really can't do much to change my work commute. you take a family that survives on a $50k/YEAR combined income and raise the gas tax they might lose everything they barely have.

 

The problem with all of this at this very moment is that the NA automakers have done little, if anything to push the envelope when it comes to technology, economy and safety in the past 20 years.

Yes there have been some changes and yes, somethings have been good. Most of the things we see today are a result of playing catchup with the rest of the industry world wide - specifically Japan and Germany.

North American's love their cars. Nothing will change that because we've been born into that. Our towns and cities are built that way and for the most part we are really spread out - something mass transit just can't cope with.

If it costs $10,000 per vehicle people will still lease, buy etc. We might complain a little more but when the car gets 50 MPG and the truck gets 30+ MPG we won't be so quick to bitch I'm sure.

When the cost of fuel in the EU sits at $2.25 / Litre and the cars still go like stink on 1.8L motors which is a far cry from NA standard of 3.0L for a small car. I for one think that it is about bloody time - the push rod V8 is long since lived out its life. Time to think about the future...