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Obama Nails the Coffin Shut (on automakers)
American Spectator ^ | May 20, 2009 | Eric Peters

Posted on 05/20/2009 5:55:11 AM PDT by reaganaut1

Can you hear that? It's the sound of the final nail being hammered down onto the coffin lid of the U.S. car industry.

President Obama wields the hammer -- in the form of a massive uptick in federally required fuel economy standards that will require each automaker's lineup of new vehicles to achieve an average of 35.5 MPG by 2016.

But what could be so bad about forcing the automakers to make cars more fuel efficient? Dig deeper and you'll see.

Even the Obama people concede the new mileage standards will cost American consumers about $1,600 per vehicle by 2016 -- in effect, a massive tax increase in the middle of a neo-Depression. The difference is this tax increase will be optional. People can avoid it by avoiding new cars -- which will make it that much harder for the car industry to recover from the catastrophic state it finds itself in right now, with sales down anywhere from 30-50 percent depending on the make.

Pure genius!

Boosters of the 35.5 MPG standard talk up the fuel savings (current cars must meet a 27.5 MPG average), but if the car costs $1,600 more to buy, the roughly 8 MPG uptick is probably a net wash, at least until the car is several years old and the fuel savings amortizes the considerably higher up front costs. Obama and Co. are millionaires, so this is small potatoes from their point-of-view. But ask most Americans whether they think $1,600 is chump change.

But all this is secondary. The real killing aspect of CAFE (the federal government's cutesy acronym for the fuel economy standards) is that it will mean the summary execution of perhaps one-third to one-half of all the vehicles in GM, Ford, and Chrysler's product lineups ...

(Excerpt) Read more at spectator.org ...


TOPICS: Business/Economy; Culture/Society; Editorial; Government
KEYWORDS: agenda; automakers; bho44; bhoenergy; cafe; cars; obama; second100days; theend
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To: reaganaut1
Obama's new Presidential Limo gets a whooping 8 MPG!

I'm just sayin..

sw

21 posted on 05/20/2009 6:10:52 AM PDT by spectre (Spectre's wife)
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To: reaganaut1

I just cannot understand how this one man? can just do anything he wants. It is like we are under a dictatorship. This kind of crap must end.


22 posted on 05/20/2009 6:11:12 AM PDT by Piquaboy (Military veteran of 22 years in Navy, Air Force, and Army.)
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To: reaganaut1
America is not Europe. At least not yet.

America has vast distances - and far more resources (drill here! drill now!) than Europe.

People will not buy these cars. We will become like Cuba, with a whole industry of people painstakingly restoring “vintage” cars from the pre-Obama days. But of course Obama will hike gas taxes too, and probably think of other ways to force us out of our cars.

Unless, of course, America comes to its senses and rejects such authoritarian collectivism.

23 posted on 05/20/2009 6:14:00 AM PDT by cvq3842
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To: brownsfan

He is the worst thing to happen to America.


24 posted on 05/20/2009 6:15:00 AM PDT by freekitty (Give me back my conservative vote.)
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To: bray
What most people don't understand is that 18 wheelers are going to be next on the chopping block, for economy and safety reasons.

They will be replaced with electric rail transport.

And Truckers will be forced out of business by insane fuel taxes passed to fund the start up of a nation wide ERT system.

25 posted on 05/20/2009 6:17:55 AM PDT by usmcobra (Your chances of dying in bed are reduced by getting out of it, but most people still die in bed)
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To: freekitty

“He is the worst thing to happen to America.”

Obama is the symptom, an opportunistic infection. The disease is several generations of Americans who lack the ability to think critically. Americans who are uninformed, and uninterested.

The loss of the public schools is the worst thing to happen to America. That is the disease.


26 posted on 05/20/2009 6:18:03 AM PDT by brownsfan (Kool aid comes in two new flavors: Hope and Change.)
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To: reaganaut1

one day an azz atty asked me when I was going to get rid of my SUV. I looked him full in face and said, “I have 3 kids.”

Geez, we drive to CO to ski, we don’t take a jet everywhere, we drive to the beach, we drive to soccer, skating, football practice, volleyball, Scout camp, church, youth group, to check out colleges...if those limp wristed dorks want to drive smart cars and think they are better than me, I really couldn’t care less. I think they are entitled to their loser opinions. I am entitled to think they are losers.


27 posted on 05/20/2009 6:18:56 AM PDT by yldstrk (My heros have always been cowboys--Reagan and Bush)
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To: Piquaboy

Sadly, those of us who are over 50 years of age have seen the best of America...we are free-falling without a chute...


28 posted on 05/20/2009 6:24:15 AM PDT by Boonie
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To: reaganaut1

Back in the 1960’s and 70’s, liberals and leftists used to fantasize about the U.S. becoming more like the Soviet Union. Now they’ve realized their fantasy. Except there’s no more Soviet Union. It was rejected by the Soviet citizens. But facts like this never seem to impress the members of the “reality - based” community.


29 posted on 05/20/2009 6:24:17 AM PDT by popdonnelly (The greatest crimes in history have been perpetrated by governments. You've been warned.)
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To: freekitty

Obama needs to go.

I’ll second that.


30 posted on 05/20/2009 6:24:23 AM PDT by wita
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To: reaganaut1
People are truly blind--they don't see this is a direct attack on our freedom (as well as our economy).

For starters, it doesn't seem possible that the increased mileage can be possible, without making cars lighter, smaller, and less powerful. These attributes can only increase the number of highway fatalities.

Then, how much of our way of life depends on our ability to travel, and travel with things; e.g., people, home-building supplies, groceries, sporting equipment, etc?

I don't personally own one, but what will this do to the RV industry? Here in Indiana, we have regions within our state that (used to) manufacture RVs. (Isn't it ironic that some of these areas were visited by Obama, and appeared to actively support him?) What will this do to people who like to go camping, fishing, and hunting? How will they carry their equipment? Boating seems out of the question, in anything larger than a canoe.

What about the handyman or woman that enjoys weekend projects around the house? How will they get lumber, drywall, bricks, and other supplies home? Wait for a delivery service? That'll really cut into the business of home improvement.

The list is endless, but make no mistake about it. These new standards are an assault on our freedoms, not to mention our pocketbooks.

31 posted on 05/20/2009 6:24:28 AM PDT by Lou L
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To: yldstrk

Soon, you will have to add in front of your statement, “Remember when we used to drive to......”


32 posted on 05/20/2009 6:25:32 AM PDT by Boonie
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To: brownsfan

You are so correct-I have been saying this for years. We now see the result. We need to keep yelling, writing, faxing, e-mailing this over and over and over again.


33 posted on 05/20/2009 6:25:46 AM PDT by pugmama
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To: reaganaut1

If less fuel is used, the price of fuel will just go up to make up the difference. Even when the government takes over control of the oil companies, because of the fuel tax involved.


34 posted on 05/20/2009 6:26:49 AM PDT by Sig Sauer P220 (The great object is that every man be armed. - Patrick Henry)
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To: reaganaut1

Go Ford!!!!


35 posted on 05/20/2009 6:27:51 AM PDT by US Navy Vet
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To: gov_bean_ counter; Mrs. B.S. Roberts

You have the most basic point down pat. I congratulate you. Long ago I realized that FUEL COSTS are only a small part of the cost of owning a car, especially a car that meets MY needs.
I agree, my fuel consumption is nothing to brag about. Yet, my other costs are minimal. Insurance in just plain CHEAP despite quite high coverage for injuries I may inflict on others. My excise tax is so LOW I draw a “smiley face” on the check I write. Depreciation is about $2.35 per month!! There are NO payments to the bank.
Additionally, the car is an older HUGE station wagon that protects me at the normal highway speed of 75mph. It also swallows, without a burp, all the stuff I must carry for my sailboat. Everything in only ONE trip, not four or five like my fellow boaters with the tiny “fuel efficient” cars. In fact, my “gas guzzler” does the job with LESS gas, because of one trip, than my friends requiring several.
Again, I stress....Gas is only ONE cost of owning a car and NOT the biggest.


36 posted on 05/20/2009 6:28:43 AM PDT by CaptainAmiigaf (NY Times: We print the news as it fits our views)
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To: reaganaut1

Okay time to do the math.

Assumptions:
1. The ave person drives 12,000 miles per year
2. Gas is at $2.00 per gallon
3. The new car cost $1,600.00 more to buy
4. Gas milage is improved by 8mpg

How long will it take to make back the initial investment?
Answer: 8.4 years!

(Note the average person doesn’t keep a new car this long and for the auto industry to stay alive we don’t want them to)

The 8 mpg improvement only saves you 95 gallons of gas a year.

Great plan. Make failing car makers build more expensive cars no one wants. That’s a fantastic plan.

Nobama = Moron!


37 posted on 05/20/2009 6:28:52 AM PDT by upier ("Usted no es agradable en America" "Ahora deporte Illegals")
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To: reaganaut1
Another aspect of this story is the Administration's plan to similarly handicap the foreign auto makers (who make many of today's most popular vehicles). They will make their offerings less financially attractive by forcing unionization upon their US production facilities (via "Card Check"). If that should prove insufficient, new import tariffs might be applied to their foreign output. Either way, freedom of choice for American consumers will be subordinated to the Federal government's dictates in the service of "environmental concerns" that are really about money and power, as they have always been.

Obama's plan is for all of us to be driving lightweight, "Green" 2-door sh!tboxes made by 100% unionized labor in government-managed factories subsidized by the taxpayers.

38 posted on 05/20/2009 6:30:37 AM PDT by andy58-in-nh (You have enemies? Good. That means you've stood up for something, sometime in your life.)
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To: reaganaut1

Actually, the auto industry can get around CAFE standards by simply calling the vehicle a truck...


39 posted on 05/20/2009 6:30:39 AM PDT by Little Ray (Do we have a Plan B?)
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To: gov_bean_ counter
Any savings in gas costs will be eaten up by increased insurance rates.

Or the occasionally proposed "mileage tax."

40 posted on 05/20/2009 6:32:37 AM PDT by Pearls Before Swine (Is /sarc really necessary?)
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