Did CAFE Standards create the SUV Market?

Question

There were no SUV's before there were CAFE standards.

Did the creation of the CAFE standards create the SUV market? I believe it did. Since trucks are exempt (and they should be) these behemoths are built on truck frames so they don't fall under the CAFE regulations.

If the CAFE standards are tightened to include SUV's, larger SUV's built on 18 wheeler cabs running on diesel will be created in order to supply the market for the demand of larger vehicles putting more pollution into the air then we have now.

A better option is to eliminate all CAFÉ standards. Sure, some cars would be bigger, but overall the fuel economy will go up because larger cars wouldn’t be built on truck frames anymore.

Answer 1

OK this is only my opinion but yes CAFÉ did create the SUV.

Before CAFÉ almost every family on my block had a station wagon. It could easily carry the kids, the weekly groceries, the bags from the mall, and tow a boat, or a camper and camping gear. But, for the automotive industry it wasn’t that big of a money maker. It didn’t have that great of a profit margin. Then came CAFÉ it said you have to average in your fleet so many miles per gallon. Well, that first car to go was the station wagon, it got lousy fuel mileage. Now the need for station wagons didn’t die, the station wagon did.

Well, then came the mini-van it was good at hauling kids and carrying the weekly groceries, but try towing a boat, or a camper and you had problems. They just weren’t designed to tow.

Then someone remember the Jeep Willys Wagon and the Wagoneers, In fact an advertisement for the Willy's Wagon once called it a "utility vehicle" for the family. They were based on a truck design and exempted from CAFÉ. It was a perfect fit, the auto companies could use many of the same parts as the truck line, so there was little development cost, it could hall the kids, tow a boat, etc. On top of that there was great profit margin, and best yet they were exempt for CAFÉ, a win, win.

There was a need and they filled it in such a way as not to hurt their CAFÉ average, it’s funny, instead in increasing average fuel mileage, CAFÉ actually decreased it.

Oh well, it mades the government feel better, and they could point and say see we really are doing something.

Answer 2

If the CAFE standards are changed to include SUVs, then you likely won't see 18 wheeler cab - based SUVs: the annual taxes that truckers currently pay will be so prohibitive to the noncommercial driver that such a concept would fail. Truckers can write-off those taxes and or deduct those fees from earnings in order to decrease taxes. The rest of us would have to pony up the cash ON TOP of the ridiculously high fuel cost (again, the trucker writes off the cost and/or passes the cost to consumers.)

Answer 3

When you try to regulate behavior, there are always unintended consequences especially when you exempt some from the standards. I would rather let the market decide. I sure wouldn't mind some government subsidies for research and development of more efficient cars and alternative fuels.

Answer 4

No. Consumer needs created the SUV market, and you are incorrect, the chevorlet Suburban has been around since the 1930's well before CAFE standards.

Answer 5

good point. gas prices are going determine fuel consumption.

besides, i'd REALLY like to see a factory optioned big bock modern muscle car.

not that it woud be a daily driver, but it would be a fun weekend toy.

if they can get 20 city out of small blocks, they should get 15-18 outta a big block

Answer 6

May not have created it, but certainly has supported. I saw a report about how people in California buy them specifically for this reason. Often don't even drive them.

Answer 7

What's a CAFE standard?