Editorial
It is distressing that some automakers are back in Washington
whining about meeting new fuel economy standards at a time when their
customers are demanding vehicles that exceed the regulatory mandates.
The companies' complaints suggest that they have learned nothing
from previous oil shocks about the long-term need to improve the fuel
efficiency of their products. What a pity.
The Detroit 3 would be much better off today if corporate average
fuel economy standards had risen modestly — in four-year increments,
say — over the past 20 years. Customer demand for larger, more powerful
cars and trucks could have been blunted by regulatory mandates. Today's
light-duty vehicles would be more fuel efficient and less likely to be
collecting dust on dealership storage lots just because the price of
gasoline has soared.
But the obstructionism of the Detroit 3 — and their recent ally,
Toyota — gave weak-kneed administrations and Congress the political
cover they needed to avoid making reasonable but unpopular public
policy. The opportunity for leadership on energy policy was left behind
in the dinosaur tar pits, along with the Detroit 3.
Belatedly, the Bush administration and the current Congress have had
the political gumption to make a start by raising fuel economy
standards. Today it's stupid to whine about CAFE because the consumer
is way ahead of CAFE standards. Rising gasoline prices are driving
new-vehicle buyers back to four-cylinder engines to a degree the nation
has not seen since the last energy crisis.
There is danger in swinging the pendulum too far in the direction of
small cars. One of the lessons of previous oil shocks is that consumers
will adjust to higher fuel prices and want back some of the utility of
bigger pickups and SUVs. Brands that do the best in turbulent times
have a wide, flexible selection of vehicles.
In a market economy, the customer is right. But consumers are
fickle. So it behooves automakers, especially the Detroit 3, to use the
current sales crisis as an opportunity to improve their manufacturing
flexibility, as well as their product lineups. It is long past time for
automakers to stop whining and work to create a better future for their
customers, the nation and themselves.
