by Michael Davis

Created on: April 05, 2008

It's amazing that this is even a question, as there really is no legitimate argument to the contrary.

It's unfair to force American companies to be held to these high standards when the rest of the world's automakers aren't being held to the same standard. Well, a little research will clearly expose this paper thin argument. The rest of the world's automaker's don't need this type of requirement because they have all been pro-active and socially and environmentally responsible enough to increase the efficiency of their vehicles without government intervention. Toyota has a highly successful hybrid line with fuel efficiencies presently 30-50% higher than the average American vehicle. Volkswagen is releasing a line of clean diesel vehicles that tout mileages in the 50-60mpg range, and have plans to release hybrid versions of these vehicles next year that will have a reported 60-70 mpg. Honda has hybrid vehicles. Even BMW is joining the parade. So, is it unfair? No, it's just sad that our CEO's don't have the sense of social and environmental responsibility to do what is right and not worry about lining the pockets of their buddies over at Exxon. So, yes, government intervention IS required.

American automaker's won't be able to compete if their forced to significantly raise the fuel efficiency of their fleets. The funny thing here is that American car manufacturer's over the past twenty have continuously been beaten to the punch by the rest of the world's auto manufacturers in terms of innovation, design, quality, and price. This is no less true when it comes to making fuel efficient vehicles. Clearly, it can be done. The Japanese have been doing it for years and the Germans are doing it. The fact is, that the government really needs to force the American automaker's to meet these high fuel efficiency standards in order to force them to remain competitive. It's ashame that it would take government intervention to get a company to want to better itself and remain competitive and viable.

As we watch GM's marketshare continue to erode, Ford stave off bankruptcy, and Chrysler be bought out by another "savior", we must ask ourselves why have these once monsters of the auto industry all become has beens struggling for a foothold and identity? Is is stubborn pride? Is it short-sightedness? Whatever it is, this latest battle they have waged to resist an increase to fuel economy standards is another symptom of the illness that is killing the once proud and strong American auto industry. Making fuel efficient vehicles isn't a challenge because it's already being done by others. Instead, it's stubborn CEO's who don't want to be told what to do, even if it may be the last hope to save their dying empires. Instead, it's CEO's who have interests outside of the public good.

In the end, it shouldn't NEED to be a requirement. However, for the sake of our faltering economy and failing industries, our government must intervene to save the American auto industry from itself. Is it about social and environmental responsibility? Yes. Is about simply doing the right thing? Yes. It's also about remaining competitive and remaining viable.

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