this was on our dealer website... granted i don't know much history behind all this but from this one sided view point i have here, it looks like huge BS against us auto makers
Dear GM Dealer:
This week, the U.S. Senate is considering major energy legislation (H.R. 6) that includes aggressive increases in the Corporate Average Fuel Economy requirements for passenger cars and light trucks. The outcome of this debate will have a decisive impact on the overall auto industry, especially U.S. domestic automakers and General Motors in particular. As an automotive retailer, you have a vested interest in ensuring that Congress passes energy legislation that achieves reasonable goals while preserving consumer choice and the livelihood of millions of Americans that depend on our industry.
As part of this process, we expect a spirited debate on the CAFE provisions. During that debate, an amendment will be offered that would moderate the extreme CAFE increases currently in the bill. We urge you to contact your Senators and ask them to support this CAFE alternative.
Currently, H.R. 6 calls for CAFE increases that independent technical experts agree cannot be reasonably achieved. In addition, it would impose the single greatest regulatory cost burden ever on an industry. The proposed legislation calls for raising the average fuel economy for the combined fleet of cars and light trucks by 40 percent to an average of 35 mpg by 2020 ? with 4 percent increases annually after that. The U.S. Department of Transportation?s most recent estimates place the cost of such a proposal to the auto industry at $114 billion?of which $85 billion, or three-quarters of the cost, would be shouldered by the domestic automakers. GM?s cost alone is estimated to be $40 billion, or more than twice our current market capitalization.
With GM and the other domestic automakers at a critical point in transforming our respective businesses, this proposal poses a very real and serious threat to the domestic auto industry and would result in irreparable economic harm to our employees, dealers, suppliers, and the communities where we operate. Moreover, such extreme CAFE increases would also lead to extensive shifts in vehicle offerings that will adversely affect consumer choice, vehicle safety, and competitiveness among manufacturers.
Make no mistake, GM is taking action to address climate change and energy security as an essential part of our long term competitiveness and success. We are pursuing product plans based on advanced technology and renewable fuels that we believe will accomplish what CAFE hasn?t in 30 years?to truly displace petroleum and reduce greenhouse gas emissions. We offer more vehicles capable of using alternative fuels (E85 ethanol), than any other manufacturer. By 2012, half of the vehicles we produce will be E85 capable. In addition, we offer hybrid technology in the Saturn Vue and Aura and the Chevrolet Malibu. Later this year, we will be adding to that list a strong hybrid version of our large SUVs, the Chevrolet Tahoe and GMC Yukon. In short, we are providing consumers with the choices and options they demand while continually improving efficiency.
It?s important that we work together with government on the right things that can truly make a difference. We believe our approach can be one part of an effective solution to address climate change and energy security. Our company, country, and consumers cannot afford to be diverted from measures that can work in order to meet aggressive and extreme CAFE increases that are not rooted in a sound technical or economic basis.
So, I urge you again to contact your Senators. Tell them that a more realistic alternative to the extreme CAFE increases that are in the current bill will be offered and we hope they will support its adoption.
Mark R. LaNeve
GMNA Vice President