How is the idea of going back to school and getting grades again? That may sound like a good idea, but soon your car may be the one getting the grades. If the new rules proposed by the Obama administration go in effect, any car you buy will have a grade based on the fuel efficiency and environmental impact of the car. As will be awarded to electric cars and plug-in hybrids, Bs will go to mid-size vehicles and compacts, and Cs will go to gas guzzlers like pick-up trucks and sports cars. The proposed stickers would include information like mpg ratings, carbon dioxide emission levels, and annual fuel costs. The rules will undergo public commenting to see what the public thinks of the labels.
Environmental groups are mostly positive about the idea, while opponents argue that government may be crossing the line by approving some vehicles and not others. Others argue the labels would be ineffective because most drivers already know which cars get more mileage than others. They suggest that a labeling system that compares fuel efficiency between the same car classes may be more effective. Environmental groups are concerned that these labels do not include emission information from coal plants that will indirectly power electric cars.
If these new rules go in effect, consumers are likely to demand more fuel efficient cars. The idea ingrained in buyers that As are good and Ds are bad should persuade them to buy the higher graded car. This should speed up the process in the auto industry of producing more fuel efficient cars. Competition to produce and sell more electric vehicles should steadily rise in order to accommodate the demand for graded A cars. Companies that succeed in producing the most environmentally friendly cars should become the auto industry leaders in the future.
http://online.wsj.com/article/SB10001424052748703369704575461602043868916.html?mod=WSJ_auto_IndustryCollection
Good summary Mario!
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