Free Markets, Free People

New CAFE standards could cost a quarter million jobs

When is a "green job" not a job? When you lose yours because of the initiative:

The Detroit News’s dogged David Shepardson has unearthed a study by one of world’s most respected automotive research firms that reveals that President Obama’s radical CAFE mandate that vehicles average — average! — 62 MPG by 2025 “could force vehicle prices up by nearly $10,000, reduce sales by 5.5 million vehicles annually, and eliminate more than 260,000 jobs.”

Shepardson is quoting from the Michigan-based Center for Automotive Research and the 260,000 job loss figure (consistent with past job losses from CAFE rule hikes) is another dent in White House’s propaganda that Green creates jobs.

The CAR study also reveals that Obama’s NHTSA and EPA have been gaming the figures when it comes to the cost of their new rules. The center’s study predicts it will cost between $3,744 and $9,790 per vehicle, while the agencies have low-balled the figure at $770 to $3,500 per vehicle.

The resulting costs would shrink the new-car market, with 5.5 million potential buyers disappearing (and manufacturing jobs with them) by 2025. That assumes that the auto fleet can even be built to meet such an absurd spec. Currently, no car — much less the average — meets 62 mpg. Indeed, only a handful of small vehicles meet the 35-mpg fleet-wide standard mandated in just five years.

Yes friends, just like the story I covered the other day, we have an administration which is more agenda driven than reality driven. We’re in the middle of a horrible recession, unemployment hasn’t really moved in over a year, the future doesn’t look much better, but the agenda to raise the price of energy (at the cost of jobs) and CAFE standards (at the cost of even more jobs) continues apace.

If you’ve ever wondered what market distortion and intrusion by government looks like, this is a good example.  And this intrusion will cost hundreds of thousands of jobs and price many consumers out of the new car market (again, this administration sees that as a feature, not a bug). 

Another in a litany of reasons Mr. Obama needs to be retired in 2012.


Twitter: @McQandO


19 Responses to New CAFE standards could cost a quarter million jobs

  • Also remember that the Senate voted to end ethanol subsidies (good thing) but did not vote to end the requirement for ethanol to be used in gasoline.  Ethanol costs go  up and gasoline prices will rise accordingly due to the requirement to have a certain amount of ethanol in gasoline.

  • Collectivists HATE science, in reality.
    Obama’s unicorn engineering…suspending the laws of thermodynamics…is just ONE example.
    His Obami have…against all rational considerations…killed of Yucca Mtn. as a nuclear waste repository.  While he SAYS he fosters nuclear power.
    Obama made it worse. Whatever it is…

  • “Of all tyrannies a tyranny sincerely exercised for the good of its victim may be the most oppressive. It may be better to live under robber barons than under omnipotent moral busybodies.  The robber baron’s cruelty may sometimes sleep, his cupidity may at some point be satiated, but those who torment us for our own good will torment us without end for they do so with the approval of their own conscience.” C. S. Lewis

  • Simple solution … require the POTUS to ride in a vehicle meeting the CAFE standards for, say, 5 years out.

  • CAFE standard – you should have all been there when he discovered this pertained to automobiles and was not one of Michelle’s diet for the country plans.

  • Those numbers are likely applicable to the 2016 standards coming. 

    The only way to meet the 2016 requirments are to downsize your car, make it a hybrid and hope that’s enough, or incorporate the penalty into the price.  One last approach is to make a downsized engine with a turbo to restore the torque so as long as you drive it like a little old lady, you’ll get good mileage.  Use it like people usually use their engines now, and watch the mileage plummet. 

    Significant change is coming before 2025 more like 2016.  I’m not understating this. 

    • I meant to add, with the exception of downsizing the car, those options add varying degrees of cost. 

      • AND the costs are to the environment, as well.  A small, turbocharged engine is inherently less durable.  As good as turbos have been engineered to be, they are one more (essential) component that will fail.
        Down-sized cars WILL kill more people, too.
        WRT heavy trucks, there is IMMENSE market pressure to engineer fuel efficiency.  They are approaching the apex of what CAN be wrung out of them.  All big truck engines made today are turboed and computer controlled.

  • No problem just bake the CAFE fine into the price of the car. Car makers sell their green products. Government gets it much needed revenue and the rest of us get to feel good driving and knowing that we have averted extinction (Horay!! Progressives). Much like how VW sells in the US. Maybe Erb could explain how those fine german engineers can’t even make existing CAFE standards.

  • The lefties got the idea from the Apollo program that scientists and engineers, under the wise guidance of a beneficent government, can make anything.  So, their idea of “science” is simply to say, “We MUST have this!”, form a federal agency to oversee it, throw a f*ckload of taxpayer money at it, and VOILA!  Solar cells that will power NYC, windmills that will power LA, embryonic stem cells that will make the crippled walk again, cars that get 65 mpg, etc.

    I’m sure that this faith makes some scientists and engineers feel good about themselves, but only for a little while because reality always comes a-knockin’ and it just LOVES to hang out with people trying to make something work.  It may be that some smart engineer will come up with a super-efficient engine, or a super Tom Swift battery that will drive a normal-sized car at the speeds and ranges Americans are accustomed to having.  If so, then I expect that people will be interested in buying them.  But making people buy what amounts to vaporware???  How stupid is that?

  • Jobs are “created” when people provide a good or service that others will willingly pay for.

    • “will willingly pay for.”
      Unless it’s a favored industry, and then we can force people to buy it through legislative edict and call them backward if they resist.

  • I guess Tata can meet the mileage, but not the safety aspect. We will be driving cars like those in the movie Brazil. Fitting.

  • $50,000.00 rollerskates with solar powerd electic motors….yeah, right!

    Are there lead water pipes in DC or what?

  • That figure must come from Øbambi counting the jobs gains at the Unicorn Factory…

  • Maybe the job gains will come from body shops, tow truck operators and EMT/medical personal to handle the massive increase in injuries and fatalities that will result from our new mobile cracker-boxes.