Tuesday, March 25, 2025

TOM LUONGO: the whole of the US Automobile Regulatory Scheme has been to make the US transportation industry unaffordable. And US carmakers make plenty of small cars for overseas markets.

CAFE rules on MPG, or Corporate Average Fuel Economy. 

from Wikipedia,

Corporate average fuel economy  (CAFE) standards are regulations in the United States, first enacted by the United States Congress in 1975, after the 1973–74 Arab Oil Embargo, to improve the average fuel economy of cars and light trucks (trucks, vans and sport utility vehicles) produced for sale in the United States. More recently, efficiency standards were developed and implemented for heavy-duty pickup trucks and commercial medium-duty and heavy-duty vehicles. CAFE neither directly offers incentives for customers to choose fuel efficient vehicles nor directly affects fuel prices. Rather, it attempts to accomplish the goals indirectly, by making it more expensive for automakers to build inefficient vehicles by introducing penalties.

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