Jul

Big 3 dealers scared of the new CAFE standards

Posted by admin Published in MPG

Filed under: MPG, Legislation and Policy

As our readers surely know, the Senate passed a bill a while back that would require a CAFE of 35 mpg, which is being fiercely opposed by the car-industry lobbies. It seems that these initiatives are making increasingly folks nervous: in a recent survey by Automotive News, dealers who sell Detroit’s Big Three showed their concerns about the future CAFE standards: It would hurt their sales.

The survey, taken by 698 auto dealers, 374 of them selling US makes shows that 76 percent of them affirmed that higher CAFE standards would hurt sales. On the opposite side, the 117 selling Japanese varietys, 70 percent said that it would be good for them.

According to sales activities, 83 percent of Japan 3 dealers are ordering increasingly small cars, compared to 63 percent for domestic varietys. And SUVs oders are additionally down, although the decrease is lower for Japanese grades as well. An interviewed

dealer affirmed that folks who still SUVs and trucks need them and will keep on buying them so sales might be unlikely to plummet.

It finally raises that question: Has the American auto industry relied too much into SUVs and trucks?

[Source: Automotive News (subs. req’d)]

Read | Permalink | Email this | Linking Blogs | Comments

BOLD MOVES: THE FUTURE OF FORD Step behind the curtain at Ford Motor. Experience the documentary first-hand.