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Old 06-07-2011, 09:17 AM   #29
Viral

 
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Drives: 2010 2SS/RS LS3
Join Date: Aug 2009
Location: Ashburn, VA
Posts: 751
Did you guys read the entire article? First off, both Wagoner (before the bailout) and Ford's Bill Ford Jr. both advocated for higher gas taxes in the past. This is not related to "Government motors" or even just GM.

And what he was suggesting was a gas tax in lieu of the increased CAFE standards which will drive prices up on cars by as much as $3500. Anytime you hear "raising taxes", everyone immediately jumps to the conclusion that it's someone trying to reach deeper into your pockets. But the economics here would suggest that increasing the gas tax rather than forcing higher CAFE standards would cause more people to buy more fuel efficient cars, thereby dropping the cost of oil (absorbing much of that tax in lower prices in the long run) and saving you that extra $3500 per car.

Automakers are in a tough "catch 22" right now where they are being forced to make more fuel efficient vehicles at a greater expense to them (to comply with these upcoming CAFE standards), but few people are buying them still, so it's hurting them financially to have to comply. (there have been more than 40,000 camaros so in 2011 vs less than 2,200 volts)

The guy didn't become a socialist overnight. There must be something to that logic regarding CAFE if so many automaker CEOs have pushed for it.
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