CAFE standards are pushing the industry towards large wheelbase vehicles, which are not required to be nearly as efficient as small wheelbase vehicles. It costs money to make a vehicle more fuel efficient, and it costs money for an automaker to put a serious EV program into place (not just “here’s one EV that can’t compete with Tesla and China, which we will cancel in a year, please buy the SUVs instead”).
Turning up that serious EV production requires a long term committment, long term investment, and a willingness to wait beyond the next two quarters for the return on that investment.
CAFE standards are pushing the industry towards large wheelbase vehicles, which are not required to be nearly as efficient as small wheelbase vehicles. It costs money to make a vehicle more fuel efficient, and it costs money for an automaker to put a serious EV program into place (not just “here’s one EV that can’t compete with Tesla and China, which we will cancel in a year, please buy the SUVs instead”).
Turning up that serious EV production requires a long term committment, long term investment, and a willingness to wait beyond the next two quarters for the return on that investment.
What are CAFE standards?
Corporate Average Fuel Economy
Thanks!
No innovation here