Automotive News - November 3, 2008 - (Page 10)

10 • NOVEMBER 3, 2008 Campaigns’ climate, energy plans hit economic wall Harry Stoffer hstoffer@crain.com Fighting climate change Where the presidential campaigns of Democrat Barack Obama and Republican John McCain stand on energy and climate issues OBAMA McCAIN WASHINGTON — They haven’t attracted as much attention as Joe the Plumber. But the proposals on climate change and energy offered by presidential contenders John McCain and Barack Obama would have farreaching and long-lasting effects on the auto industry. Both Democrat Obama and Republican McCain say they are willing to allow states to regulate greenhouse gases from vehicles, although McCain has wavered during the campaign. Both would impose a nationwide cap on emissions to fight global warming. Although both support develop- Fuel economy plan Greenhouse gas cut goal For state emissions rules? Novel idea Raise standards 4% yearly 80% by 2050 Yes Every vehicle: E85 Enforce tougher standards 60% by 2050 Yes, but … $300 mil. battery prize ment of alternative fuels, they differ on the role government should play. Obama would use some proceeds from the sale of emissions permits to businesses for a 10-year, $150 billion energy fund that would promote alternative vehicles and fuels. But the idea has collided with concerns about imposing new costs on business amid a global financial crisis. “He may have to back off of that, at least in the short term,” said Charles Chesbrough, senior economist with CSM Worldwide, of suburban Detroit, which provides market forecasts and consulting services for the auto industry. McCain was an early Senate advocate of a cap-and-trade program for greenhouse gases, which also would create a market for emissions permits. In effect, the program would put a price on emissions of carbon dioxide, a byproduct of burning most fuels. By 2050, McCain wants emissions to be 60 percent lower than they were in 1990. Obama wants to cut greenhouse gas emissions 80 percent by midcentury. The next president will face an early decision on whether to reverse the Bush administration and grant authority to states to enforce their own greenhouse gas emissions rules for vehicles. State rules loom Obama has said he will provide that authority to the states. McCain has indicated support for state rules in the past but is thought to be willing to reconsider. But Dan Becker predicts that “either presidential candidate, when elected, will sign the waiver.” Becker, a longtime proponent of cutting emissions, directs a new advocacy group called Safe Climate Campaign. He is part of an environmental coalition that supports Obama. California and at least 13 other states want their own emissions rules. Automakers and dealers predict market chaos if some states have their own rules while the industry tries to comply with toughened federal standards. A new federal law requires a 40 percent improvement in fuel economy of new vehicles by 2020. Dave McCurdy, president of the Alliance of Automobile Manufacturers, told Automotive News he is “guardedly optimistic” that Obama or McCain as president can be convinced that a strong national standard is preferable to state-by-state rules. The alliance represents the Detroit 3, Toyota and seven other automakers. Obama’s energy plan calls for a 4 percent annual improvement in fuel economy. McCain calls for tougher enforcement of fuel economy rules. nt artme ts Dep : Par d FROM tment mende Depar recom . ce rvice t servi TO: Se e righ TS: Th ONTEN mileage by C gain. and a right in at the N: ck aga MATIO ill come ba R CONFI er that w custom Flex-fuel and electric McCain and Obama both say they support increased production and use of alternative fuels. But McCain opposes federal subsidies for ethanol. Obama wants all vehicles to be capable of running on E85 — fuel that is 85 percent ethanol. Automakers say that proposal is unrealistic. McCain proposes a $300 million prize for the developer of a breakthrough battery for electric vehicles. Both nominees say their plans would put the country on a path to energy independence. But, again, events have overtaken some of their proposals. Both called for tax credits to help consumers buy environmentally friendly vehicles. But Congress and President Bush already have enacted a credit of as much as $7,500 for future buyers of electric-drive vehicles, such as the Chevrolet Volt. Obama proposed $4 billion in tax credits to help the industry retool for advanced vehicles. That now looks paltry compared with the $25 billion in direct loans that the president and Congress have approved. And some lawmakers are calling for approval of another $25 billion this year. In their second and third debates, McCain and Obama sidestepped a question about what programs they might postpone because of the economic crisis. Both have suggested that dealing with energy issues could boost the economy. The nominees are “committed to moving ahead on climate change and fuel economy,” said Alan Reuther, legislative director of the UAW. The union has endorsed Obama. But whoever the next president is, Reuther added, the economy “will be front and center.”c Right Part. Right Place. Right Time. 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Table of Contents Feed for the Digital Edition of Automotive News - November 3, 2008

Credit? Come and get it, industry groups say GM's product delays signal dire health Ford sticks with small-car plans Mitsubishi CEO: Let's halt Galant production in U.S. A dealer â and his reputation â on the ballot Help vehicles shed pounds American Axle posts loss UAW hires bailout adviser Ford to spend $200 million to upgrade 2 Ky. plants No off-lease cars? Certified will find others Arlena Sawyers China's stock market plunge has spooked car shoppers Advantage, Ford: Mulally likes owning Ford Credit Supplier execs join innovation panel at congress Quietly, Mini seeks 500 drivers to lease electric car for a year Reynolds bolsters document business Winterkorn: Audi needs to build in U.S. The great revenue drop of 2008 Bidders bet they can rebuild Heard 1 size fits all NADA: Give us tax incentives, dealer loan guarantees Campaigns' climate, energy plans hit economic wall Detroit 3 need and deserve U.S. help now Chrysler needs a buyer, but not GM Dealers pay fair share of taxes Washington hurts, not helps, electrics Compressed natural gas is the best fuel New ads aim to raise Suzuki's low profile Suzuki's new ad strategist: This brand has soul Fuel efficiency is coming â it just takes time Electrics edge closer by 2010 Tougher CAFE standards loom R&d chiefs shift gears for an electric future Japan carmakers lead charge into electrics Buffett backs BYD's sketchy plan for U.S. electric car Q&A: BYD envisions 2010 exports to U.S., Europe Girding the power grid for an electric fleet Hype powers plug-in vehicles Coachbuilders see salvation in electric cars Electric vehicles are charging into Europe Expect stop-start's big start to arrive in 2010 Flexibility will help Honda survive the storm Nardelli: Bailout not perfect â but needed Audi goes high-tech to boost service Acura offers quick service to win business Toyota's fashion fan Picture this Hondaâs N.A. operating profit falls 80.6% in quarter Aug. RV shipments fall 44% VW drops hints about car for new Tenn. plant Mexico sales fall 10.7% in September Honda to boost CR-V, end Civic output in Ohio Ford and GM jockey for steel discounts Dealers Ford Credit seeks to tap $700 billion package GM will end a used-car incentive early Nissan, Mitsubishi, Mazda recast fiscal 2009 forecasts Metaldyne to bondholders: Take 30% or Chap. 11 looms Detroit 3 ties hurt profits of dealer groups GM takeover would eviscerate Chrysler ranks, model lineup Mitsubishi plans electric hauler To match Toyota, Nissan offers 0% loans Sticker, sticker at the mall, what's the cheapest of them all? The Versa Waiting is what it's all about, Alfa Buy Chrysler? GM should sell Buick to SAIC Pickups pumped up by pump price plunge Chrysler hybrids, we hardly new ye Ghosn: Your best partner is a president in your pocket Sonic wins, but Mercedes wants last word

Automotive News - November 3, 2008

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