I’m going to do a series of posts on what the automotive companies are asking for–and then I’ll do a summary (probably with questions some smart folks in Congress should ask). I’ll start with an interesting series of political requests Ford made.
No CA-Specific CAFE Standard
This is cheeky. In its first political request, Ford basically takes on an issue dear to the Speaker.
First, Ford was proud to support stronger CAFE standards, and we are absolutely committed to meeting them. However, we urge Congress to maintain one economy-wide set of national standards on fuel economy. A patchwork of standards would place enormous financial and engineering burdens on manufacturers and have the effect of reducing consumer choice — all for little or no environmental benefit.
Of course, if I were Pelosi or Waxman, I’d turn around and say, "good, we’ll raise the national rates to the levels CA wants."
I’m not surprised Ford made this request–at the very least, it will spark discussions of why state-specific levels make it harder on auto makers to work efficiently. I am surprised that Ford led with this request, since it’s sure to piss a few people off. I guess Ford hasn’t given up its tin ear.
A Trade-In Incentive
Next, Ford asks for something that has been proposed around the blogosphere: a program, attached to the stimulus bill next year, offering incentives to consumers to trade up in terms of efficiency.
Second, in developing a stimulus bill to drive our country’s economic recovery, we ask Congress to consider incentives for consumers to trade in older vehicles and move to more fuel-efficient vehicles.
This makes sense, particularly for Ford, as it would create market demand for their cars, as they often now lead segments for efficiency. And it’d get consumers into car showrooms to buy.
Note that there’s no discussion of what happens to these trade-ins, though. That needs to be part of the equation, as no one wants these cars in the used car market.
Ongoing R&D Assistance
I’m not sure precisely which R&D incentive Ford is referring to here–but they want it to continue.
We also ask that continued R&D incentives be considered: the automobile industry spends $12 billion annually on research and development – more than any other industry.
I’m guessing this will be a totally uncontroversial request and will open discussions about what cool things the automotive industry is already doing on R&D.
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