Tampering with the free market economy

In an article posted by those "balanced" guys at FOX News entitled, "GM Exec Rips Into Proposed Change in U.S. Fuel Economy Rules", they report that Bob Lutz, GM's Vice-Chairman is complaining about proposals to change the CAFE (Corporate Avergae Fuel Economy) standards to require increased fuel economy in upcoming model years. I am one who firmly believes that, given a level playing field (government's job), the market will determine what is the best product or service available. Competition will indeed produce a better product as time goes on and government's role in the whole thing is to ensure the consumer's safety and ability to make an informed decision, not to decide for us.

That being said, is this guy an idiot? He is quoted in the article as saying such informed things as, "For one thing, it puts us, the domestic manufacturers, at odds with the desires of most of our customers, namely larger vehicles." Really, then why is the SUV market as a whole dying on the vine? Why are the Japanese carmakers adding market share every year? Why are the Big Three laying off tens of thousands of people while Toyota celebrates its new plant's opening in Tennessee this year? Why do I have to pay MSRP plus on a Prius but I can get a rebate on any Big Three SUV?

In my humble opinion, just like the late 70's-early 80's, an increase in the CAFE requirements would be the saving of the Big Three. They are apparently too dimwitted and too hidebound to be able to change with the market on their own. They are living in the late 90's where men had to compensate for 'you know what' by buying their wives the big trucks to tool around in. Never mind that safety studies showed they had a greater risk of rolling over or destroying the people and property they came in contact with. Never mind that their wives had difficulty maneuvering the things. Never mind they had to take out a second mortgage to fuel the things. This was what we wanted and Detroit complied......and are still complying.

Now that gas prices have gone above $2 and look to stay that way (if not higher). The move is to smaller and smarter......except in Detroit. The Japanese are responding with more hybrids and economical vehicles. Detroit responds with bigger rebates on their SUVs. What's wrong with this picture? Ideally, we would let the Big Three go the way of the dodo (as befits their foresight), but they are an integral part of our economy, not to mention national pride. Therefore, an increase in CAFE seems to be the only way to get them to stay alive.