The U.S. House has been working on an energy bill which, for the time being, does not strengthen automobile fuel economy standards. Apparently the House leadership ditched those provisions in an effort to keep oil/automobile-manufacturer friendly Democrats on board with the bill.
Meanwhile, I don’t think it’s a coincidence that we saw this headline earlier in the week:
“U.S. Automakers Market Share Lowest Ever”
The Detroit automakers’ share of the U.S. market dropped below 50 percent in July for the first time in history, according to an analyst who tracks industry numbers.
I suspect this trend will only worsen so long as (1) American auto manufacturers continue to hitch their financial stars to big, gas-guzzling SUV wagons while (2) oil prices continue to climb (these may get much worse in the next few years).
So Congress now faces a choice: it can (1) embrace the status quo, as American vehicle manufacturers continue their slow decline building inefficient vehicles, or it can (2) push the manufacturers to look forward and confront the coming energy shortage, and in the process hopefully remain competitive.
I hope it chooses (2).
UPDATE: Michael Vickerman discusses why Congress has failed to adopt sound energy policy.