Car vs Truck
RV Business
The combination of falling gas prices and the boomlet of higher-riding crossovers is forcing automakers to stop making certain passenger cars that don’t generate sufficient sales or profits to satisfy Wall Street or American consumers.
The Detroit Free Press reported that last month, Fiat Chrysler CEO Sergio Marchionne said production of the Dodge Dart compact and Chrysler 200 midsize sedan would stop in the near future.
“There has been a permanent shift toward utility vehicles and pickup trucks,” Marchionne said. “And we have seen, certainly in terms of our ability to meet market demand, some severe restriction in terms of the dexterity of our manufacturing system to accomplish that end.”
The bigger-is-better phenomenon is setting the stage for a political showdown in the next year over the government’s Corporate Average Fuel Economy. In the wake of the 2009 financial crisis, the Obama administration backed, and Congress approved, a standard that would require automakers to reach a fleet average of 54.5 miles per gallon by 2025.
The actual target will vary because the regulation includes something called a “footprint adjustment” provision. That’s a bureaucratic term for allowing different MPG requirements depending on a company’s mix of passenger cars and light trucks.
For now, the industry and consumers win, but there’s a broader debate yet to happen. In 2017, the National Highway Traffic Safety Administration will seek public comment on whether the fuel economy standard should be revised for model years 2022 through 2025, Graham said. A decision on whether to change the 54.5 mpg target is expected in early 2018.
For the full story click here.