A statement from Ford's Alan Mulally that I'd like to hear more about

I read the interview. Mulally's beginning to sound like a Detroit car guy. Heaven help Ford.

"The biggest aha was on CAFE [federal Corporate Average Fuel Economy regulations] and what a market-distorting policy that is, what a failed policy that has been in reducing our dependence on foreign oil."

If it's a failed policy, it's because the auto makers fought it tooth and nail. It would not be impossible to double our national average miles per gallon - think of what that would do to gasoline consumption!

I agree with you, Justin, on the impact of an increase in the federal gas tax. I doubt that Mulally agrees.

It must be part of the culture at American carmakers that working in the "small car division" was an assignment to corporate Siberia.

Even if CAFE distorted the market in the US, what about the rest of the world? The actions of the American manufacturers haven't shown that they have much interest in developing competitive products in the small car arena.

Justin, do you think a guy who ran a virtual monopoly (Boeing) knows how to compete in a competitive world? He only had one competitor Airbus. How does he change a culture?

He seems like a really poor hire to me.

Americans like bigger vehicles!

I do not see why American automakers focus on making smaller vehicles to drive. Yes, they provide better gas mileage, but they are less safe in auto accidents and have less power than bigger vehicles. Americans have liked and still like bigger cars. Why should American auto companies focus on making smaller cars when they do not sell well?

Americans want size AND good gas mileage. Americans are not going to sacrifice size for better gas mileage. People still like SUVs and pickup trucks. All that American car companies need to do is make these vehicles get better gas mileage. We do not want to drive a two-door, 100hp vehicles. We want to drive four-door, 300hp vehicles that get 35+ mpg.

Smarten up people.

I am a litle reluctant to claim that Detroit's focus is "on the big and the wasteful".

Detroit's focus seems to be on the vehicals that have had the largest per unit profit in the past. These happen to be both big and large consumers of fuel. Sometimes the big and high appetite vehicals are what we need for our egos and sometimes they are what we need for our families. But they are not wasteful per se. People have bought them because they solved problems.

Now, with higher fuel prices, people are reweighing how much they need the big and high appetite vehicles. And looking at Fords they don't see what they want. Giving Ford the benifit of the the doubt, Ford probably knows this, but also knows that to provide the higher fuel economy will require some very expensive engineering for only a small payoff in fuel savings. For example, assume an annual 15,000 mile use per vehicle. At 25 mpg that uses 600 gallons. At the proposed 35 mpg, disregarding demand elasticity, 428 gllons are required, a savings of 172 gallons, or a little more than $500 per year. But to get this mileage in a new car as safe as those now being driven, will require a substantial investment. My guess Ford's earnings will take a substantial hit for perhaps a decade.

I don't think we need the CAFE at all. Higher fuel prices will take us there with no Federal oversight. Higher fuel prices will force Ford and all other manufactures to weigh fuel economy a little higher in their marketing models. Those companies that do not see the fuel pump anxiety felt by those of us who are stuned by a $75 tank of gas will probably not be around for long. (Yes I am aware that I have paid the equivelant of $90 for a tank full in Europe. But I generally get better milage there too)

Gas mileage is not a concern to most car buyers. Sure people complain about gas prices. But most people go for styling, safety, and price before considering fuel efficiency.

I really think that $3.15 per gallon is not much money to pay for gas. This should be the minimum price for gas, whether there is a shortage or surplus of oil. The government should fix the price of gas at $3.15 per gallon and raise it every five years to adjust for inflation. People will still pick styling, safety, and price before considering fuel efficiency. People will get used to paying $3.15 per gallon minimum and then Americans will have to find something else to complain about.