Detroit Muscle

Thomas Friedman is confused (this may not be news to you guys, but I only recently started reading his column). He claims to "get" pork barrel politics, but can't understand why Michigan's Congressional delegation is against legislating higher CAFE (corporate average fuel economy) standards. I'm gonna take a wild guess and say it's because Ford and GM think they can make more money with the status quo than with a Federally mandated change in their fleets.

Sure Ford and GM are bleeding market share and in bad shape, but it's unlikely that lawmakers crusading to be seen as doing something about oil prices / global warming know more about Detroit automakers' profit-maximizing moves. Clearly, if Ford and GM thought it was a winner, they could change the composition of their fleet without Federal prodding and reap the rewards.

What exactly does Friedman think is going on? Is it not the case that one place domestic producers do make money is in passenger trucks? Aren't they fighting to keep being able to sell as many of them as possible? Isn't there at least a chance that this strategy is best for their own bottom line?

Now sure, you can argue that higher mileage standards are necessary/inevitable (go ahead!), but that is a far cry from arguing that domestic producers are insane to not embrace these higher standards.

It's like Friedman is saying there are tons of $100 bills all over the sidewalks of Detroit. GM and Ford can't seem to pick them up, the Government is trying to force them to pick them up, but GM and Ford are trying to get the government off their backs and avoid having to scoop up that free money.

Yeah, you're probably right after all Tom.