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IPFS News Link • Politics: Democratic Campaigns

US Democrats thinking of telling car companies what they can make:

• https://joannenova.com.au

The people don't really want Electric Vehicles, so the US Government is thinking of forcing them on the buyers by squeezing the industry that makes them. There is talk of new rules which apply to the companies selling cars. The control of production could be hidden in something called the Corporate Average Fuel Economy or CAFE standards. By averaging the fuel consumption across a whole company,  those brands will have to find a way to sell more EV's and to limit their own sales of gas guzzlers. It's a supply and demand thing, if a company can only make so many large internal combustion engine cars, the prices of those will be artificially high. Only the wealthy will be able to afford them. The poor will still pay more for cars than they do now, but the cheapest cars on the market will be EV's — subsidized by inflated prices on petrol driven cars.

This is just a thought bubble for now, but obviously, the message is to buy your big cars and look after them. They'll be hot property in the second hand market.

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From David Wojik, CFACT

Technically these are the Corporate Average Fuel Economy or CAFE standards. The way they work is hidden in the name. They do not govern the average fuel use of cars used by corporations, which the name "corporate average" suggests. No, they govern the average fuel economy of cars MADE by corporations.

The way it works will be well hidden. Instead of telling you and me what we can buy, they in effect tell the car makers what they can make. I am not making this up.

The result is rationing and it has been for many years. The car makers limit the production of bigger cars and trucks, with higher fuel consumption, to stay below the standards. In reality what is rationed is stuff like power, size and safety. I have even heard that they raise the prices of big cars to cut the prices of little ones. This is called a cross subsidy.


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