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American Morning
Who's at Fault for Inefficient SUVs?
Aired May 07, 2003 - 08:26 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
BILL HEMMER, CNN ANCHOR: There is a new message in the P.R. campaign to try and push SUV manufacturers to try and make vehicles more fuel efficient. The print and TV ads right now aimed directly at Washington and Detroit, as well.
A small sample of one now.
(BEGIN VIDEO CLIP FROM COMMERCIAL)
UNIDENTIFIED MALE: It is the first car built for the road and the world around it. It can take America to work in the morning without sending it to war in the afternoon, with a sophisticated braking system that stops our dependence on foreign oil. It is 40 miles to every gallon and thousands of dollars saved at the pump. The only problem is Detroit won't build it.
(END VIDEO CLIP)
HEMMER: That campaign the second one we've seen now in about four month's time, the work of The Detroit Project. That group's co- founder, Arianna Huffington, live this morning in Washington.
Nice to have you back here.
ARIANNA HUFFINGTON, "THE DETROIT PROJECT": Good to be with you.
HEMMER: Also, Csaba Csere, editor-in-chief of "Car & Driver" magazine in Ann Arbor, Michigan.
Csaba, welcome back, as well.
Good to have you both here.
Let's take a break this, Arianna.
The ad says that the United States could save two million barrels a day if you essentially double the efficiency of SUVs.
How do you get the math on that?
HUFFINGTON: Well, this is a fact. I mean nobody disputes that. What Detroit is disputing is whether consumers want these cars. And that has been the excuse. They've always been blaming the consumers, the consumers want large cars. And what we are saying is that, yes, give the consumers what they want, but make it fuel efficient. The technology works. Toyota is doing it with its hybrid cars. Toyota is planning to put out a hybrid SUV, as is Lexus. It's all happening. Why shouldn't America be at the forefront?
HEMMER: I've got it. I've got your point. It's a question of demand.
What about it, Csaba? Do consumers want it?
CSABA CSERE, "CAR & DRIVER" MAGAZINE: Well, there's no evidence that consumers want it. There's plenty of 30 and 40 and 50 mile per gallon vehicles on the road and they're not selling very well. The hybrids from Honda and Toyota are trickling along, doing about 20,000 units a year apiece. And also there's no evidence that we can actually build a large SUV that gets 40 miles per gallon.
HEMMER: So you dispute the fact then...
CSERE: Later on...
HEMMER: You don't think the technology is there right now that allows the manufacturer of an SUV that gets 40 miles per gallon, is that right?
CSERE: Well, a small one can be done. Later on this year, Ford's going to introduce the Ford Escape hybrid. It will barely get 40 miles per gallon.
HEMMER: OK, that...
CSERE: But this is one of the smaller SUVs on the market.
HEMMER: Understood that's one fact. The other fact, is Detroit running from this, Csaba?
CSERE: Well, I don't know that Detroit is running from this, and Detroit really shouldn't be singled out on this right now. All the growth in SUVs and trucks is coming from the imports. Just about every month there's a new SUV from the Japanese car makers. Volkswagen is about to introduce an SUV. Porsche has just introduced an SUV.
So to single out Detroit on this is just out of touch with reality.
HUFFINGTON: Actually, we need to single out Detroit and Washington because Washington is making it possible for Detroit to avoid using and improving the existing technology. Americans are renowned all over the world for our ability to innovate. Why not be ahead here instead of behind? And the truth is...
HEMMER: How is D.C. allowing that, Arianna?
HUFFINGTON: D.C. is allowing it by accepting millions of dollars in campaign contributions. Detroit actually spent $37 million in lobbying last year alone. And all this effort is directed at basically preventing the laws for improving CAFE standards, which are the fuel efficiency standards, to go through. Also, tax credits, we're giving large tax credits for the largest SUVs and we have this large loophole through which SUVs can drive through so that they don't have to comply to fuel efficiency standards. And you know what? The most amazing thing, in the new tax bill, we are even going to be cutting down on the tax credit for hybrids.
So it's an insane public policy.
HEMMER: OK, the allegation is out there, Csaba. How do you defend it?
CSERE: Well, the CAFE law in itself is ill conceived in a number of ways because it forced Detroit to...
HEMMER: The Cathay law was what?
CSERE: Well, it's the Corporate Average Fuel Economy Act. It says all vehicles out there, all trucks have to average 20.7 miles per gallon and it's 27.5 for cars. The problem is that that isn't what people want to buy right now. The percentage of trucks in our fleet is actually increasing. In the month of April, 2003, it was 52 1/2 percent, which is the highest it's been in history.
So to tell Detroit that they've got to build some vehicles that get this high fuel economy when consumers want to buy a different group of vehicles...
HUFFINGTON: You know, everything you are saying...
CSERE: ... this kills the auto makers.
HUFFINGTON: This is absolute misinformation.
HEMMER: Make it quick, Arianna.
HUFFINGTON: You know, you must have gotten it...
HEMMER: Out of time almost.
HUFFINGTON: Basically this is the same thing that Detroit has been saying through the '70s when they've been arguing that they cannot put safety belts in because it's going to get them out of work. Detroit has to be made to do the right thing by Washington. That's the message of this campaign, because they are not doing the right thing by themselves.
HEMMER: Almost out of time. Csaba, a final word is, what, on this?
CSERE: There's simply no evidence that the consumers really care about high fuel economy. We have hybrids on the road. We have small SUVs on the road and the big sellers are the medium sized and large vehicles because they provide the utility and that's what the car makers are providing.
HEMMER: I want to thank you both for your input.
I don't think this is going away anytime soon.
SUVs are hugely popular in this country.
Debate continues.
Arianna Huffington, thanks.
HUFFINGTON: Thank you.
HEMMER: Csaba Csere in Ann Arbor, good to talk to both of you today.
TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com
Aired May 7, 2003 - 08:26 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
BILL HEMMER, CNN ANCHOR: There is a new message in the P.R. campaign to try and push SUV manufacturers to try and make vehicles more fuel efficient. The print and TV ads right now aimed directly at Washington and Detroit, as well.
A small sample of one now.
(BEGIN VIDEO CLIP FROM COMMERCIAL)
UNIDENTIFIED MALE: It is the first car built for the road and the world around it. It can take America to work in the morning without sending it to war in the afternoon, with a sophisticated braking system that stops our dependence on foreign oil. It is 40 miles to every gallon and thousands of dollars saved at the pump. The only problem is Detroit won't build it.
(END VIDEO CLIP)
HEMMER: That campaign the second one we've seen now in about four month's time, the work of The Detroit Project. That group's co- founder, Arianna Huffington, live this morning in Washington.
Nice to have you back here.
ARIANNA HUFFINGTON, "THE DETROIT PROJECT": Good to be with you.
HEMMER: Also, Csaba Csere, editor-in-chief of "Car & Driver" magazine in Ann Arbor, Michigan.
Csaba, welcome back, as well.
Good to have you both here.
Let's take a break this, Arianna.
The ad says that the United States could save two million barrels a day if you essentially double the efficiency of SUVs.
How do you get the math on that?
HUFFINGTON: Well, this is a fact. I mean nobody disputes that. What Detroit is disputing is whether consumers want these cars. And that has been the excuse. They've always been blaming the consumers, the consumers want large cars. And what we are saying is that, yes, give the consumers what they want, but make it fuel efficient. The technology works. Toyota is doing it with its hybrid cars. Toyota is planning to put out a hybrid SUV, as is Lexus. It's all happening. Why shouldn't America be at the forefront?
HEMMER: I've got it. I've got your point. It's a question of demand.
What about it, Csaba? Do consumers want it?
CSABA CSERE, "CAR & DRIVER" MAGAZINE: Well, there's no evidence that consumers want it. There's plenty of 30 and 40 and 50 mile per gallon vehicles on the road and they're not selling very well. The hybrids from Honda and Toyota are trickling along, doing about 20,000 units a year apiece. And also there's no evidence that we can actually build a large SUV that gets 40 miles per gallon.
HEMMER: So you dispute the fact then...
CSERE: Later on...
HEMMER: You don't think the technology is there right now that allows the manufacturer of an SUV that gets 40 miles per gallon, is that right?
CSERE: Well, a small one can be done. Later on this year, Ford's going to introduce the Ford Escape hybrid. It will barely get 40 miles per gallon.
HEMMER: OK, that...
CSERE: But this is one of the smaller SUVs on the market.
HEMMER: Understood that's one fact. The other fact, is Detroit running from this, Csaba?
CSERE: Well, I don't know that Detroit is running from this, and Detroit really shouldn't be singled out on this right now. All the growth in SUVs and trucks is coming from the imports. Just about every month there's a new SUV from the Japanese car makers. Volkswagen is about to introduce an SUV. Porsche has just introduced an SUV.
So to single out Detroit on this is just out of touch with reality.
HUFFINGTON: Actually, we need to single out Detroit and Washington because Washington is making it possible for Detroit to avoid using and improving the existing technology. Americans are renowned all over the world for our ability to innovate. Why not be ahead here instead of behind? And the truth is...
HEMMER: How is D.C. allowing that, Arianna?
HUFFINGTON: D.C. is allowing it by accepting millions of dollars in campaign contributions. Detroit actually spent $37 million in lobbying last year alone. And all this effort is directed at basically preventing the laws for improving CAFE standards, which are the fuel efficiency standards, to go through. Also, tax credits, we're giving large tax credits for the largest SUVs and we have this large loophole through which SUVs can drive through so that they don't have to comply to fuel efficiency standards. And you know what? The most amazing thing, in the new tax bill, we are even going to be cutting down on the tax credit for hybrids.
So it's an insane public policy.
HEMMER: OK, the allegation is out there, Csaba. How do you defend it?
CSERE: Well, the CAFE law in itself is ill conceived in a number of ways because it forced Detroit to...
HEMMER: The Cathay law was what?
CSERE: Well, it's the Corporate Average Fuel Economy Act. It says all vehicles out there, all trucks have to average 20.7 miles per gallon and it's 27.5 for cars. The problem is that that isn't what people want to buy right now. The percentage of trucks in our fleet is actually increasing. In the month of April, 2003, it was 52 1/2 percent, which is the highest it's been in history.
So to tell Detroit that they've got to build some vehicles that get this high fuel economy when consumers want to buy a different group of vehicles...
HUFFINGTON: You know, everything you are saying...
CSERE: ... this kills the auto makers.
HUFFINGTON: This is absolute misinformation.
HEMMER: Make it quick, Arianna.
HUFFINGTON: You know, you must have gotten it...
HEMMER: Out of time almost.
HUFFINGTON: Basically this is the same thing that Detroit has been saying through the '70s when they've been arguing that they cannot put safety belts in because it's going to get them out of work. Detroit has to be made to do the right thing by Washington. That's the message of this campaign, because they are not doing the right thing by themselves.
HEMMER: Almost out of time. Csaba, a final word is, what, on this?
CSERE: There's simply no evidence that the consumers really care about high fuel economy. We have hybrids on the road. We have small SUVs on the road and the big sellers are the medium sized and large vehicles because they provide the utility and that's what the car makers are providing.
HEMMER: I want to thank you both for your input.
I don't think this is going away anytime soon.
SUVs are hugely popular in this country.
Debate continues.
Arianna Huffington, thanks.
HUFFINGTON: Thank you.
HEMMER: Csaba Csere in Ann Arbor, good to talk to both of you today.
TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com
