Bush CAFE Plan - Saving Less Than 1 Month's Gasoline Demand Over 15 Years

[hatrack]

The Bush administration on Tuesday put forward a plan to make the United States's burgeoning fleet of pickup trucks, minivans and some sports utility vehicles go further on a gallon of gas in response to the soaring cost of petrol. But the plan, which would not be implemented until 2008, was condemned by environmental groups because the largest SUVs, such as the Hummer H2, would not be affected. It would also not affect cars.

The average price of a gallon of petrol in the US has risen by 70 cents in the past year to $2,55 a gallon. But in a country where ownership of a car, and increasingly of a gas-guzzling SUV, is considered a civil right, the topic is dominating the airwaves, with radio phone-ins inundated with callers complaining about the cost of filling up.

"This is a plan that will save gas and result in less pain at the pump for motorists without sacrificing safety," said Norm Mineta, the transportation secretary, who claimed that the scheme would save 10bn gallons -- more than 30-million tonnes -- of fuel.

EDIT

A watchdog group, the Union of Concerned Scientists, said the "minuscule" change in fuel economy would do virtually nothing to reduce the US dependence on oil or address high fuel costs. "The administration's claim of saving 10-billion gallons of gasoline with this proposal amounts to less than one month's worth of gasoline saved over 15 years," a spokesperson said.

EDIT

http://www.mg.co.za/articlepage.aspx?area=/breaking_news/breaking_news__international_news/&articleid=248939

[shoelace414]

1. one month over 15 years...

hmm.. 15 times 12 = 180..

so one month in 180.. 1/180 .0055... so.. we'll save 0.5% in 15 years?

[Oerdin]

9. This is classic.

Politicians love to pass meaningless legislation so they can say they're doing something but make sure nothing actually changes.

[phantom power]

2. I think that events have overtaken the CAFE issue.

Oil prices are going to make CAFE irrelevent. People will buy more fuel efficient vehicles, and/or carpool, drive less, etc, because now we can't afford to do otherwise.

There was a window of opportunity for CAFE, when fuel was cheap, and that window is now closed.

[hatrack]

3. Detroit's ass is going to be kicked worse than ever before . . .

And the "tyranny of heavy-handed command and control regulations blahblabhblahblah" isn't going to have a damned thing to do with it.

Those who have defended inefficiency, profligate waste and cautious mediocrity for decades all the name of defending "market forces" are now going to find out just what market forces really are.

What sucks is that a whole lot of hard-working people are about to pay for the mistakes of those few at the top.

[phantom power]

4. I still cling to my vision of CEOs being lynched by their own employees.

But I'm sure it play out as the usual round of taking it all out on the Japanese.

[ramapo]

5. A joke...a very bad joke

It is amazing how Bush can claim with a semi-straight face that this will help address our energy problems. What I find even more amazing is that people will believe him.

[hatrack]

6. By the way, did anyone hear about Ford & GM bond rating downgrades today?

Looks like this bold move to improve efficiency isn't going to do all that much - imagine that. :eyes:

SAN FRANCISCO (MarketWatch) -- Moody's Investors Service on Wednesday lowered the ratings of Ford Motor Co.'s (F) senior unsecured debt to Ba1 from Baa3, and assigned a Ba1 corporate family rating and an SGL-1 speculative grade liquidity rating. It also lowered Ford Motor Credit Co.'s senior unsecured rating to Baa3 from Baa2, and short-term rating to prime-3 from prime-2. The outlook for both companies is negative. Moody's said the downgrades reflect further erosion in Ford's operating results and cash flow generation, and noted that those factors are expected to result in a pretax loss from automotive operations for 2005. Since improvement in Ford's cost structure can only be implemented over a period of time, said Moody's, financial performance is expected to remain weak.

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38588.6795191319-840844310&siteID=mktw&scid=0&doctype=806&property=symb&value=&categories=&

SAN FRANCISCO (MarketWatch) -- Moody's Investors Service on Wednesday lowered General Motors Corp.'s (GM) senior unsecured debt to Ba2 from Baa3; its short-term rating to 'not prime' from prime-3; and assigned GM a Ba2 corporate family rating and an SGL-1 speculative grade liquidity rating. Moody's also lowered General Motors Acceptance Corp.'s senior unsecured debt to Ba1 from Baa2, and its short-term rating to 'not-prime' from prime-2. The outlook for both companies is negative. Moody's said the downgrades reflect continuing operating losses in GM's North American automotive operations, as well as challenges in restructuring the company to achieve a viable long-term competitive position. Moody's also said that in its view, a successful restructuring must address the GM's high fixed-cost burden associated with hourly employee healthcare costs and excess capacity, among other issues.

http://www.marketwatch.com/news/newsfinder/pulseone.asp?siteid=mktw&guid=%7BFB7BE379-7462-422B-98CB-6DFFF935392C%7D&

[phantom power]

7. And Moody's recommendation is...

take away workers' health-insurance! Anything but improve the product, you know.

[Dogmudgeon]

8. At a certain point, many Americans will just give up cars

If oil price increases also drive up unemployment and inflation, we'll see a whole lot of people keeping their cars parked and using bicycles, mopeds, and other, newer forms of low-energy transportation.

For instance, an efficient motor mounted on a specially modified bicycle can get several hundred miles to a gallon of gasoline, and similar mileage per unit of stored energy from a battery, fuel cell, or even biofuel ethanol.

I, personally, have only made four car trips in the last year that have required more than ten miles' driving. The rest of my car use has been to go to the grocery store or to a local jobsite. None of those trips would have been difficult on a bicycle -- or in my case, since my sense of balance was destroyed by an ear tumor, an "alternative vehicle".

Gasoline consumption will decrease, all right, as Americans turn to "alt-transpo" first out of necessity, then out of a desire to do so.

--p!