Another example of good intentions gone wrong has popped up. I’m sure you’ve heard how it’s up-up-up for Toyota and foreign automakers’ sales and down-down-down for U.S. companies. In part, generous pensions assure that U.S. automakers pay more people who aren’t working than those who are.It’s an easy target, but Congress is the problem this time. New minimum fuel mileage standards, which seem good, will likely hurt U.S. automakers and specifically put several hundred Wisconsin employees out of work.
Here’s how it works. Companies have to average a certain number of miles per gallon over all the vehicles they make. So, of course cars get higher mileage than SUVs and trucks. U.S. companies Ford and GM sell LOTS of trucks and SUVs. They do a good job and customers like it. Customers that like smaller cars often buy Toyotas, Hondas, etc.
If all the companies have to improve their average of mileage, what vehicles will they make less of? Trucks and SUVs of course. This won’t hurt Toyota, Honda, etc. because trucks and SUVs are small percentage of their fleets. Ford and GM on the other hand, do great business in trucks and SUVs. In fact, the best-selling Ford model is its F-150 truck followed by the Explorer SUV. These U.S. makers would have to cut the numbers of their best-sellers and still compete against Toyota & Co. See the disadvantage for our own automakers?
And this indirect attack on U.S. auto sales comes from our own Congress, bowing at the altar of recently fashionable green worship. And it gets worse for Wisconsin workers in Janesville’s GM factory. They make two of GM’s SUVs. So guess who will not have as much work if these standards become law? Wisconsinites.Where is the United Auto Workers union to stick up for “Joe and Jane Sixpack?” If UAW doesn’t stick up for their people on this matter, then they’ve truly surrendered and allow the Democratic polyglot to wag them at will.
See, I told you it was political and economic. HF1
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