I sat down with Stuart Varney & Company on FOX Business this morning to talk about the Corporate Average Fuel Economy (CAFE) standards proposed by the Obama administration.
My take: I think better fuel economy is a good thing.
Here is the video:
I'm a free-market guy and don't like government mandates, but we've had these standards since 1975 and it has spurred innovation in the auto industry.
People are feeling the pain at the pump and higher MPG means more money in their pockets.
Some automakers are not happy with the proposal, but others like Mark Reuss of GM North America find the new standards tough, but achievable.
And I'm encouraged by John DiCicco of University of Michigan's Energy Institute who believes that current technologies can yield 74 mpg by 2035 if staged appropriately.
Who wouldn't want to get 74 miles per gallon?!
At the end of the day, I'd prefer the auto industry innovate without government prodding, but I think the CAFE standards may just prime the pump.
Stuart also threw me a couple of curve balls about a coal mining operation that was ceasing operation and Major League Baseball's Designated Hitter rule. (I'm not a fan of the DH, despite my Red Sox having been the beneficiary of the rule in 2004 and 2007.)
Here is a link to the video in case the player doesn't work in your browser: http://bit.ly/nJHeru
UPDATE: Late yesterday, I learned that the White House and Automakers had reached an agreement about a slightly revised number: Automakers and Obama Agree.