Something to Celebrate: New CAFE Regulations

Federal regulations on the fuel economy of trucks and cars have always struck me as the worst form of central planning. Here we have bureaucrats with no skin in the game, no experience in industry or design, no decisive role in the market process, telling producers exactly how their products should work.

Their mandates can prioritize fuel economy over safety, safety over design, and compliance over economy. Trade offs do not matter, in their view; mandates alone should be the driving force of making cars and trucks The Obama administration did this with a fuel-economy pipe dream: by 2015, all manufacturers must double the average fuel economy of new cars and trucks to 54.5 miles per gallon.

What will this do to car design, safety, consumer satisfaction? Doesn’t matter. The government wants transportation to be as “clean” as possible, so this must take priority.

For this reason, I can’t help but delight in the way Trump’s EPA is preparing to throw out this central-planning scheme. It’s not that I favor gas guzzlers or dirty air; it’s that I would like the market and not bureaucrats to dictate the pace and path of progress.

If manufacturers come up with a way to make and market a car that gets magic gas mileage, great. If all of America decides to go full Tesla, fine. But it should be determined by the people, not the agencies.

We don’t know yet what the new EPA rules will say but my own feeling is that they won’t go nearly far enough to reverse the proposed future and undo the damage that has already been done by existing “corporate average fuel economy” (CAFE) regulations. Among the signs of damage: modern cars are less safe, provide less visibility outside the car, and tend to result in cars that look strangely similar.

Cool Cars of the Past

A few years back, I attended a wedding at which an antique car, specially ordered for the occasion, was waiting for the bride and groom to take them to the party. I was among the guests who were more enraptured by the car than by the main event. Absolutely stunning.

It was a Studebaker. As best I can tell, it was a 1940 Commander convertible. I had to look it up: This company was born in 1852 and died in 1967, and produced some of the most visually gorgeous cars in its day. It even made an electric car in 1902! Wartime controls shrunk its margins and led to an industry consolidation that killed the company.

On this Saturday afternoon, this car was still fabulous, after all these years. We stood in a parking lot packed with new models. No one cared about them. We were all obsessing about this old Studebaker. It is rightly named: It commands attention. The shape makes it a work of art. The hood looks like nothing made today. The red leather interior is luxurious.

We stood there in total admiration. We wondered about the gas mileage. It couldn’t be more than today’s gigantic “light trucks,” but we all agreed that paying more to drive something that cool would be worth it.

Yet it’s not a choice. No manufacturer can make a car like this anymore. Step back from the situation and think about it. In the 1930s, phones were awful, and you were lucky to have one at all. No one today would give up a smartphone for one of those old things. Same with shoes, computers, televisions, ovens, and so much more. No one wants to go back.

With cars, it’s a different matter. Our sense of nostalgia is growing, not receding. But we don’t even have the choice to go back. There will be no more pretty cars. The government and its tens of thousands of micromanaging regulations on motor vehicles will not allow it.

Build Your Own Car

The day before the wedding, I was at the grocery store and saw another amazing car, this one a tiny sports model with roll bars. It just took my breath away, and I’m not even much of a car person. I usually don’t care what I drive. But this one was just too great not to elicit a sense of awe.

I asked the owner where he bought it, what model, what make, etc. This car challenged my impression that all new cars look the same. He said that he built it in his garage. He got the kit from Factory Five Racing.

“You have to build your own car in a garage because no maker is able to sell something like that?”

“You got it.”

These car kits are a way of “breaking bad” in an era of total government control of the physical world. They are a workaround. The law permits hobbyists and antique collectors and used car owners to drive these pretty cars around. But it doesn’t allow carmakers to sell road-legal cars that look just like these.

The old expression goes, “If you want something done right, you have to do it yourself.” There’s only one problem: It should not be true in a developed economy. We should be able to take advantage of the division of labor. We shouldn’t have to build our own cars any more than we should have to weave our own clothes. But that is exactly where the regulations have taken us.

Did you ever wonder how car companies can make stunningly great cars that they call “concept cars,” but these cars are somehow never available to you and me? I’ve always been puzzled about this. I figured it was just because the concept cars were too expensive to make.

That’s not it. It’s that the regs don’t allow them to exist as retail items. It hasn’t happened all at once. It’s been a bit at a time, taking place over four decades in the name of safety and the environment. The whole thing began in 1966 with the creation of the National Highway Traffic Safety Administration, followed by the Environmental Protection Agency and dozens of others. Every regulator wanted a piece of the car.

No End to Regulation

Each new regulation seems like it makes sense in some way. Who doesn’t want to be safer and who doesn’t want to save gas?

But these mandates are imposed without any real sense of the cost and benefits, and they come about without a thought as to what they do to the design of a car. And once the regs appear on the books, they never go away. They are stickier than code on a patented piece of software.

Then the endgame arrived. Car homogenization has become something of an Internet meme. It turns out that all new cars more or less look alike. I had begun to notice this over the last 10 years I thought I was just imagining things. But people playing with Photoshop have found that you can mix and match car grills and make a BMW look just like a Kia and a Hyundai look just like a Honda. It’s all one car.

There are five reasons: mandates for big fronts to protect pedestrians, mandates that require low tops for fuel economy, a big rear to balance out the big fronts, tiny windows resulting from safety regulations that end up actually making the car less safe, and high belt lines due to the other regs. In other words, hysterical concern for safety and the environment has wrecked the entire car aesthetic.

Even Vox has taken notice that car design is frozen in the late 1980s. “Automakers began relying more heavily on wind tunnels and aerodynamic calculations when designing their cars, and engineers started working more closely with designers. Within just a few years, virtually every car on the market suddenly looked like the once-futuristic Taurus.”

Never mind that safety and the environment create contradictory results. The more gas you save, the lighter the car and the more likely it is to kill you in a crash. Corporate average fuel economy (CAFE) regs have certainly killed many people. Similarly, the more safe it is, the more gas it uses, as a general principle. Meanwhile, the gas itself is being ruined with corn additives that shorten the life of the engine.

These regulations are responsible for the disappearance of the station wagon and the domination of the car market by huge vehicles that can be classified as trucks, which are regulated according to a different standard.

That’s right: Regulations designed to encourage fuel economy have done exactly the opposite by pushing people out of cars and into SUVs — which just so happens to be exactly what the big three manufacturers want. It is not surprising that the most consistent voices against CAFE standards have come from abroad, not from Detroit.

No one set out to wreck the diversity, functioning, and beauty of our cars. But that is precisely what has happened, as the political and bureaucratic elites have asserted their own value systems over the values of both producers and consumers. They are the masters and we are the slaves, and we are to accept our lot in life.

So Much for the Future

Consider the point about pedestrians. How many lives has a high front end really saved? No one knows. But the regulation itself seems to rule out the possibility that drivers and pedestrians can work out problems for themselves, without regulatory intervention. In other words, we are being treated like children. Wait, not even that. We are being treated as if we have no brains at all.

The situation is very serious. Some 30 years ago, futurists imagined that cars of the future would be stunning and beautiful and would bring total joy to driving. Consider, for example, this Triumph that was said to be the “car of the future.” That future has been entirely wrecked. Regulators made it the car of the past, a dashed dream that had to die to make way for the weird, homogenized stuff we are permitted to buy today.

Americans used to take pride in their cars and laugh at the horrible cars produced under socialism in, for example, East Germany. The Trabant will go down in history as one of the worst cars ever. But as we look back at it, at least you could see out the windows and at least the plan seemed to put the interests of the actual driver above Mother Nature and the nondrivers. The socialist central planners had a bit more sense than the American regulators.

The Rollback

In the end, if the goal is to protect the pedestrians and the Earth, you can’t do better than mass transit and the bicycle. As it is, the car is allowed. But it is not allowed to develop, not allowed to take a shape that consumers would like, and not allowed to function like an actual economic good.

The car was the foundation of the second industrial revolution. Encroaching government is robbing it of its future. We once dreamed of a flying car. The regulators are putting us in the position of just dreaming about returning to the glory days of the 1970s. That’s just pathetic.

Therefore I applaud the efforts to roll back these regulations, even if only a bit, not on grounds that we should be consuming as much gasoline as possible but rather than the future of the car ought to be shaped by manufacturers and consumers, not agencies in Washington issuing dewy-eyed edicts.

Maybe the Studebaker Commander can come back…someday. 

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