Gas powered non-compacts the American way to drive

Robert Jaeger of Charleston responds to a recent column regarding a book, “Cars That Changed The World.” In discussions with many readers, most believe the publication by the London Press favored European brands.

Yeager: “A comment about cars that changed the style. The 1969 Olds Cutlass led the way in aerodynamics and interiors, four-on-the-floor stick shift, level mid-front seats and faux leather.

“I think if Olds produced a modern Cutlass, they would still be in business. I am an avid reader of your weekly columns. Keep ’em coming.”

Thank you, Bob.

Now, to today’s topic. It was pleasant to hear the President’s vow, “declaring a moratorium on federal regulations.” Naturally it was assumed this would include the Environmental Protection Agency (EPA) and its fantastic drive to force Americans to buy small cars they do not want.

The latest EPA edict: Each automobile manufacturer selling cars in the U.S must meet a corporate average of 54.5 miles-per-gallon for its fleet of automobiles by the model year 2025. That is nearly double today’s required standard of 27.3 mpg.

Think of it: In just 14 years carmakers will be forced to spend billions of dollars to meet the new standards — and, you guessed it, the consumer will pay the bills in thousands added to the MSRP of all cars produced.

Motor Trend magazine agrees: “On average, $6,714 per car (in 2008 dollars), says the Center of Automobile Research in Ann Arbor, Mich. This requires a 30 percent PEV (Plug-in-Electric) market share to meet the standards — drastic by any measure, the Center says in its analysis.

“Shortly before the administration (EPA) proposed its CAFÉ standards, a Boston consulting group found that, based on consumer demand, gas internal-combustion engines will remain the predominant source of power in North America through 2020.”

Why not diesel? In Europe, the 2010 mix was 46 percent diesel-54 percent gas. “I don’t think we’re going to bridge the gap any time soon,” Xavier Mosquet says about diesel sales in North America versus diesel sales in Europe. Mosquet is senior partner in BCG’s automotive practice and lead author of “Powering Autos in 2020: The Era of the Electric Car?”

Motor Trend adds this: “The future of the automobile is clear though. We’ll see better, lighter and perhaps smaller cars with gas-internal-combustion engines, constantly improved after 125 years of development, combined with a slowly, steadily rising share of plug-in electrics — especially those with range-extending engines.

“Aside from government tax incentives and some huge unexpected breakthrough in battery technology, automakers most likely will have to provide ‘disincentives.’ By 2025, they’ll have to make it less attractive to buy a non-electric car, padding the profit margins on one to help pay for the other. Also, we’ll need more plug-in stations at workplaces and in public locations.”

That will pose an additional problem for Charleston … we do not seem able to provide sufficient bathrooms downtown.

This columnist’s complaints with the federal government forcing the production of smaller cars in order for the carmakers to meet mpg standards have been stated before:

1. Small cars are not as safe as cars, or pickup trucks weighing 1,000 pounds more.

2. In times when our government should reduce spending, rebating $7,500 in tax incentives to buy a semi-electric car is foolish. Those are our tax dollars wasted on vehicles that cannot be sold on their merits.

3. Electric cars are a drain on electricity — 45 percent of which is generated by coal-fired power plants.

4. Can you imagine the demand on the power plants this summer if we had millions of cars and trucks running exclusively on electricity?

5. The notion that solar or windmills can make up the difference is nonsense. On the subject of cutting federal spending, it is reported that the U.S. Department of Energy is proposing a $4.5 billion loan guarantee to First Solar Inc. Again, your tax dollars at work, or, wasted.

My biggest concern is the government’s taking away from consumers their choice of vehicles. This fall, check out the vehicles parents use to pick up children from school: 80 percent are SUVs, station wagons or crossovers, yes, even extended-cab pickup trucks.

Those are their choices! Safety should not be taken away in order “to reduce our reliance on foreign oil.”

Drill! Right in the USA! Drill, Baby!

Dr. George G. Spaulding is a retired General Motors executive and distinguished executive-in-residence emeritus at the School of Business at the College of Charleston. He can be reached at 2 Wharfside St. 2A Charleston SC 29401.