|
This is not the end of the Camaro. Let's take a look at how CAFE works.
CAFE takes the average fuel economy of a manufacturer with a weight on production. For example, if a manufacturer makes 3 cars with 20 mpg and 10 cars with 40 mpg, the fuel economy average for CAFE is approximately 35 mpg because there are so many more cars with 40 mpg than 20 mpg. That is very important to GM because GM's heritage of making high-performance vehicles and trucks.
There is also a loophole for certain special vehicles, which include hybrids and other fuel efficient vehicles that bump the average. By producing these vehicles, a company can surpass the standards even if the math doesn't work out.
GM has several high-tech, fuel efficient platforms that will give these aforementioned bonus credits in addition to raising the average with their numbers. Moreover, the high-performance vehicles we worry about losing are not produced in the same numbers as compacts, like the Cruze, that raise the average.
We are looking at a lot of changes in our future. Manufacturers will increasingly emphasize new technology to reach these targets, including direct injection, smaller engines, diesel, forced induction, aerodynamics, and lightweight materials. As a result, we can expect cars to get more expensive.
GM has a lot of things going its way. As a leader in fuel efficiency technology, GM has a head start when it comes to developing products that satisfy federal requirements. As a result, GM may not have to give up on performance. That being said, we may see lower horsepower numbers counterbalanced by lighter vehicles. We can't expect to see a new, high-horsepower motor every couple of years, but we can expect engines with potential. Think back to those detuned 350s that still had good power and could be more aggressively tuned to kick some behind at the track. The good news here is that GM is continuing to engineer great performance while maintaining federal standards.
With all the costs affecting GM, I'm sure GM will do everything it can to avoid fines. More R&D cost contributes to future engineering, while doing nothing could result in those same costs going to the government without any new technology as a result. Basically, GM has no choice but to continue investing heavily in advanced technology and make a few gambles that American buyers will purchase fuel efficient alternatives to what we drive today, including diesel cars and force-fed performance vehicles.
|