What CAFE Means to Customers

CAFE penalizes manufacturers for producing the types of vehicles that American consumers desire.

It forces manufacturers to offset popular models that may have lower fuel economy but offer the features the customer wants, by selling more higher-mileage vehicles that consumers often don't want. Consumers want larger vehicles for their family, work and leisure transportation. Sales of the EPA's 10 most fuel-efficient cars typically account for only 1 percent of all passenger car sales. Sales of the agency's 10 most fuel-efficient trucks typically account for just 0.5 percent of all truck sales. Although consumers care about fuel economy, it is low on their vehicle purchase priority list — after such things as value, utility and safety.

Because fuel economy is low on consumers' shopping lists, manufacturers often have to push higher-mileage vehicles into the marketplace by selling them for little or no profit.

American consumers have shown a preference for full-size trucks and SUVs, and GM is offering products to meet market demands. The market is not expected to change, which explains why foreign competitors have targeted this segment for growth.

Actually, foreign automakers could benefit from U.S. CAFE standards at the expense of domestic manufacturers. Because the law is consumption-based, full-line manufacturers like GM may have to limit large truck sales, giving foreign competitors that do not produce a full range of vehicle types and sizes a market advantage.

<< Back to CAFE index | Next >>