Two legal proceedings on the same days stack the odds in favor of cleaner cars, at least for developed nations. Yesterday a federal judge in Sacramento upheld a California law that sets higher emissions standards for new cars and trucks than the EPA allows. On the same day German newspapers widely reported that a draft proposal from the European Commission could result in billions of euros in penalties for automakers that fail to meet EU emissions standards.
Both proceedings can be reversed, though the writing is on the wall for automakers. California's law requires car makers to raise the fuel economy of their fleets by 30 percent over the next nine years. Fifteen other states have agreed to join California, pending a waiver from the EPA. The Bush White House promises to issue a decision by the end of this month. Even stiffer federal mandates in the CAFE standard failed to pass the Senate yesterday, though analysts see a growing likelihood of a workable compromise soon. One way or another, car makers will be forced to raise the mileage of their fleets--at least in the first world.
Developing nations can go choke. Read after the jump.
Raising gas mileage doesn't require dramatic investments in research. Some materials costs may rise, but generally, vehicles simply need to slim down. Greater use of smaller engines with direct-injection, turbocharging and other technologies that boost efficiency will come into play. And hybrids, diesels and electric cars will continue to proliferate.
Since it doesn't cost much in engineering for car makers to raise mileage, will they build and sell these cars in the developing world where car sales are soaring? It's unlikely. Without imposed standards, manufacturers will appeal to individual consumer tastes, not to national health--or the health of the planet. And in China, India, and Indonesia, Europen and American car makers will be competing with local manufacturers.
Sources: New York Times, Wall Street Journal, Automotive News
