Analysis: Regulation is not the mortal enemy of automakers | Beyond the KM

This entry was posted on Thursday, February 17th, 2011 at 11:17 am

Analysis: Regulation is not the mortal enemy of automakers

I was recently visiting a new Porsche web site called 911 Nation. On the site, there was a new post arguing the U.S. President Obama and the Democratic Party, which presently controls the U.S. Senate, is working to take certain high performance cars off the road, much to the detriment of the car-buying public.

This is hyperbole and conjecture and it’s apex. They only one putting an end to the Porsche is those that own the company. CAFE standards do not nor will they ever prevent a company from operating. At worst, they charge a sort of fine for each vehicle that does not meet requirements. Though the OEM pays this fine, it is effectively passed on to the consumer, at the risk of that automaker being less competitive. That said, Porsche like every automaker has every incentive to develop state-of-the-art technology that provides us with both a great driving experience and the comfort of know that we are polluting ourselves to a lesser degree as the world population continues to climb.

Obviously, CAFE has nothing to do with extremism of the environmental or other kind. Extremism might dictate that none of us use powered vehicles of any kind, which is clearly not the case here. Indeed, one could further argue that generations of people who have lived in an era of fossil fuel consumption are cheating future generations by consuming resources that are not sustainable.

We need look no further than the new Porsche Panamera Hybrid S, which according to sources has a CO2 g/km of only 160. Indeed that is a competitive number, especially for a car capable of great handling and performance.

I might further posit that America is the follower, not the leader, in developing improved environmental standards with respect to the automotive industry.

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