Carmakers Back Strict New Rules for Gas Mileage

[tw]

From the NY Times of 28 July 2011:

Carmakers Back Strict New Rules for Gas Mileage
While the American carmakers, as well as their Asian rivals, once argued against even minimal increases in government fuel rules, they are acquiescing without protest to an increase to 54.5 miles per gallon by 2025, from the current 27 miles per gallon.

The new standards are seen by the Obama administration as critical to reducing oil consumption and cutting consumer expenses at the pump, and the White House made it clear to Detroit executives that the changes were coming and they needed to cooperate.

Bankruptcy has replace business school graduates (people who hate innovation) with car guys. New management apparently recognizes that profits only come from innovation. Not by blaming the unions, tax structure, foreign competition, engineers, government, and hybrids. Not by playing money games as taught in business schools (and still believed by too many managers in American auto companies). Amazing what happens once people who can drive cars take over. Not an idle comment. Top American auto executives who could not drive was common.