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	<title>Travis R. Martin, CPA, MBA &#187; US Auto Industry</title>
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		<title>US Auto Industry Makes U-Turn, Embraces Fuel Efficiency Standards</title>
		<link>http://travisrmartin.com/2009/05/us-auto-industry-makes-u-turn-embraces-fuel-efficiency-standards/</link>
		<comments>http://travisrmartin.com/2009/05/us-auto-industry-makes-u-turn-embraces-fuel-efficiency-standards/#comments</comments>
		<pubDate>Wed, 20 May 2009 02:18:36 +0000</pubDate>
		<dc:creator>travisrmartin</dc:creator>
				<category><![CDATA[Business]]></category>
		<category><![CDATA[Ford]]></category>
		<category><![CDATA[Fuel Efficiency]]></category>
		<category><![CDATA[GM]]></category>
		<category><![CDATA[Government]]></category>
		<category><![CDATA[Obama]]></category>
		<category><![CDATA[US Auto Industry]]></category>

		<guid isPermaLink="false">http://travisrmartin.com/?p=366</guid>
		<description><![CDATA[The Summer of 2009 is shaping up to be a bizzaro version of 2007, especially when it comes to the US auto industry.
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			<content:encoded><![CDATA[<p>Ah, the Summer of 2007.  Those were the days. The Dow was just shy of 14,000, Barry Bonds was the home run hero of baseball, and the automobile industry was busy doing what the automobile industry does best &#8211; complaining about proposed government regulations that threatened to put them out of business.</p>
<p>What a difference two years makes. The Summer of 2009 is shaping up to be a bizzaro version of 2007, especially when it comes to the US auto industry.</p>
<p>For decades the automobile industry lobbied to stop federal mandates designed to improve vehicle quality and safety. Each requirement passed down by the Feds calling for trivial things like air bags, seat belts, turn signals, and crash standards, was decried by automobile executives as a nail in their respective company&#8217;s competitive coffin.</p>
<p>So, it is not without some degree of irony that Detroit&#8217;s Big 1.5 are embracing President Obama&#8217;s <a href="http://online.wsj.com/article/SB124275189316335291.html">new plan</a> that seeks to increase fuel efficiency and reduce greenhouse gases. Under the Obama plan announced Tuesday, average vehicle fuel efficiency for new cars must average 35.5 miles per gallon by 2016.</p>
<p>Ford CEO Alan Mulally praised the plan, calling it a &#8220;crucial milestone&#8221; that his company is &#8220;committed to meeting.&#8221; GM executives were equally enthusiastic.</p>
<p>Keep in mind, these are the same companies that, in 2007, <a href="http://articles.latimes.com/2007/jun/12/nation/na-energy12">vehemently opposed legislation </a>requiring vehicles to obtain an average of 35 mpg by 2020.</p>
<p>In 2007, the auto industry called 35 mpg &#8220;unattainable.&#8221; Today, they are calling it an opportunity.</p>
<p>Why the sudden U-Turn?</p>
<div id="attachment_367" class="wp-caption alignright" style="width: 310px"><a href="http://travisrmartin.com/wordpress/wp-content/uploads/2009/05/president-obama.jpg"><img class="size-medium wp-image-367" title="president-obama" src="http://travisrmartin.com/wordpress/wp-content/uploads/2009/05/president-obama-300x247.jpg" alt="Obama postponed announcing fuel efficiency standards for trams" width="300" height="247" /></a><p class="wp-caption-text">Obama postponed announcing fuel efficiency standards for trams</p></div>
<p>The only logical explanation is that we are witnessing an $80 Billion change of heart. After receiving bailout funds to stay afloat, Detroit&#8217;s automakers are now in no position to argue. President Obama has exploited their moment of extreme weakness to achieve something that no president has been able to do: get an agreement on heightened fuel efficiency standards.</p>
<p>But, why stop there? Obviously, our tax dollars have Detroit&#8217;s attention. Let&#8217;s pressure President Obama to request a few more changes from the automakers &#8211; while they are still open to suggestion.</p>
<p>Here are two things on my Detroit Wish List. Feel free to add your demands in the comments.</p>
<p><strong>Let Me Buy My Car On The Internet</strong></p>
<p>I&#8217;m a point-and-click kind of guy. I don&#8217;t like dealers. I don&#8217;t like showrooms. Let me go to <a href="http://www.ford.com/">www.ford.com</a> or <a href="http://www.chevy.com/">www.chevy.com</a>, customize a car from scratch, add it to my virtual shopping cart and be done with it. I&#8217;m fine if it takes five to seven days for the vehicle to arrive at my house (just ask Amazon &#8211; they know I&#8217;m all about the free super saver shipping).</p>
<p>And it&#8217;s not like I need a test drive. Outside of kicking the tires and getting a free soda, I get nothing from the in-person buying experience.</p>
<p><strong>Make Better Commercials</strong></p>
<p>The average car commercial is thirty seconds long. I estimate that, throughout the course of a year, I spend 1 day, 16 hours and 32 minutes watching car commercials (a testament to the sheer volume of car commercials on television, not my excessive television viewing).</p>
<p>Despite seeing hundreds of commercials, I can only vaguely recall something about Howie Long giving away a Honda lawnmower. That&#8217;s it. The rest of the ads are a blur of random vehicles whizzing down nondescript country roads and too good to be true financing offers.</p>
<p>If Detroit can&#8217;t even build a good 30 second spot, why should I believe they can build a good $30,000 automobile?</p>
<div class="tweetthis" style="text-align:left;"><p> <a class="tt" href="http://twitter.com/intent/tweet?text=US+Auto+Industry+Makes+U-Turn%2C+Embraces+Fuel+Efficiency+Standards+http%3A%2F%2Ftravisrmartin.com%2F%3Fp%3D366" title="Post to Twitter"><img class="nothumb" src="http://travisrmartin.com/wordpress/wp-content/plugins/tweet-this/icons/en/twitter/tt-twitter.png" alt="Post to Twitter" /></a> <a class="tt" href="http://twitter.com/intent/tweet?text=US+Auto+Industry+Makes+U-Turn%2C+Embraces+Fuel+Efficiency+Standards+http%3A%2F%2Ftravisrmartin.com%2F%3Fp%3D366" title="Post to Twitter">Tweet This Post</a></p></div><p>Related posts:<ol>
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<li><a href='http://travisrmartin.com/2009/04/commercials-dont-give-them-a-second-thought/' rel='bookmark' title='Commercials: Don&#8217;t Give Them a Second Thought'>Commercials: Don&#8217;t Give Them a Second Thought</a></li>
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