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Originally Posted by DGthe3
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Yes it was. However, the main goal of CAFE has been the same since its introduction. It's goal was to dramatically increase the average fuel economy of vehicles, which it did by gradually raising standards that manufacturers had to meet unless they wanted to pay meaningless fines. It's obvious CAFE is getting stricter with time, however its impact was still large even back in the 80s. The new revision is forcing automotive companies to make even more fuel-efficient vehicles, even if they are to be made at a loss.
The market decided back in the late 1800s and early 1900s that electric vehicles do not meet their needs, thus the universal choice of gasoline engines. All the money put into R&D, advertising, etc. could have been put towards other programs that could achieve a lot more financial promise than the Volt. The building of this car is simply cost-ineffective, and its success, that would be relatively small compared to other possible programs, is at the risk of the future. Its success hinges on an ever-increasing market for hybrid vehicles, which relies on oil prices to stay high. However, ignoring all the future optimism, the reason why GM is choosing to have such a slow start on production is because they know that this car isn't going to be profitable under current market demand. (GM is also counting on this technology to become more widely used, leading to a cut in costs through competitive forces. Although, the only way its going to become more available is through the demand of a hybrid/electric market.) The point is that without government regulation this vehicle probably wouldn't even exist, considering its main purpose of existence is to help meet CAFE Standards.