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The Impact of Attribute-Based CAFE Standards on the Automotive Industry

July 23, 2007

New report examines impact of attribute-based CAFE standards

A new UMTRI study finds that Detroit automakers would gain market share and increase profits under proposed new fuel economy standards. The study, "The Impact of Attribute-Based Corporate Average Fuel Economy (CAFE) Standards on the Automotive Industry," is the first rigorous analysis of the economic impacts of current legislative proposals to raise CAFE under the reformed "attribute-based" structure.

Study findings include:

  • An attribute-based CAFE would mean lower mileage standards for Detroit automakers.
  • An attribute-based CAFE yields greater gains in market share and profits for the Big Three than for the rest of the industry.
  • Higher CAFE standards yield higher profits.

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