CEO of the American Automobile Industry

Posted: May 19, 2009 4:02 PM
The Obama Administration is certainly having its say when it comes to the U.S. auto industry.  

For instance, what kind of cars should we drive?  The Administration is announcing plans to increase the fuel efficiency of cars by 2016 to 35.5 mpg. The current CAFE standard is 27.5 mpg for cars and 24 mpg for light trucks. Current law already requires a 35 mpg standard by 2020.  But, given the Administration’s dominance in the auto board room these days, why not move the deadline up 4 years?

Automakers are strapped as it is when it comes to manufacturing and car sales, and this new standard will increase the strain on these manufacturers to meet requirements four years sooner. Furthermore, the AP reports that new fuel and emission standards for cars and trucks will increase the costs to consumers of about $1,300 per vehicle by 2016. 

Seeing as how standards were already in place to meet these fuel efficiency standards by 2020, it's interesting that the President would choose to hit the wallets of already struggling Americans yet again to advance his environmental agenda.

The President's intercession has essentially made him CEO of the American automobile industry. In fact, his Auto Task Force has called for the elimination of more than 3,000 Chrysler and General Motors automotive dealerships which would subsequently put over 150,000 employees out of work.

Arbitrarily, dealerships across the country are receiving notice that no matter how profitable they may be, they’ll be closing their doors by government fiat.  These closings will not fix the litany of problems facing the automotive sector nor make it viable once again, yet the President has chosen to destroy small businesses, hurting families and worsening the recession for communities all over America.

Given that nowhere in the U.S. Constitution is the President given the power to make such demands on businesses, the President should reconsider this plan. The government takeover of the automotive industry is unprecedented and unacceptable, and it’s families and small businesses who will bear the weight of this misguided policy.