GM Exec Criticizes CAFE Rules

The Congress is heating fresh environmental rulesexceeding the fuel-economy standards in a model
imbibed in Corporate Average Fuel Economyyear. Said credits can be utilized to cover a shortfall in
(CAFÉ) program. Along with the warming of thethe following three years. Japanese automakers like
rules is the criticism by Detroit automakers especiallyToyota and Honda surpass the standards. These
General Motors Corp. Bob Lutz, GMs vice chairmanautomakers are famed for manufacturing
said that the proposal would effectively hand the trucksophisticated interior OEM replacement auto parts for
and SUV market over to the imports, particularly theToyota and Honda auto body parts.
Japanese.Unfortunately, Detroit automakers like GM, Ford and
Lutz's criticism was posted on a GM blog late Friday.DaimlerChrysler have already used credits in recent
Part of the comment suggests that GM will fight hardyears. Auto parts GM are now focused on boosting
against any proposal to raise fuel-economy targets bySUV and trucks of the automaker. This is also true
a specific amount. Early this December, chiefwith Ford and DaimlerChrysler. The latter is busy
executives and retired military generals clamored for apromoting Edge and Mustang.
4 percent annual increase in standards. They furtherLutz noted, The Japanese automakers "have earned
added that their aim is significant for energy security.years of accumulated credits from their fleets of
GM, more than any other automaker, has expressedformerly very small cars. They can afford to go bigger,
its ardent opinion regarding the matter. The former saidwhich they're doing now by the way, and they'd be
CAFÉ rules controlled what automakers couldable to move up and fill the segments we'd be forced
build without regard for what customers were willing toto vacate." He further added, "We don't have any
buy. Lutz said the proposed increases would limit GM'smagic 100-m.p.g. carburetor that we're holding back
ability to build as many larger vehicles as its customersbecause we're in bed with the oil companies. The
may demand. Lutz "Season's Rantings" messageJapanese government is spending huge amounts on
reflects GMs intention to focus on pickups and biggeradvanced battery research. It would be nice if our
SUVs to improve profits in North America.government would do the same.
CAFE rules state that automakers earn credits for