Mercedes-Benz Vision GL 420 BLUETEC
(Photo: DaimlerChrysler)
"Trying to sell people what they don't want is not a winnable business proposition,” he added. “And it is that 'anti-free market element' of CAFE that makes life difficult for us. We've learned to live with CAFE and its modest increases."
He then suggested that automotive companies should "look to innovation, and to increasingly substituting petroleum products with biofuels." He pointed to the modern diesel engine, which has "plenty of the former, and great potential for the latter."
"I know that in Washington, the auto industry has a sometimes deserved — and sometimes undeserved — reputation for just saying ‘no’ to every proposal," Zetsche acknowledged. "The best progress toward policy objectives comes when policymakers and automakers work closely together to achieve the desired results."
Zetsche recounted a recent conversation he had with a U.S. senator, who suggested that the industry could increase the average fuel economy of new vehicles by 50 percent over 10 years. His response to the senator was twofold.
"First, I explained to him that independent, credible studies — from, for example, the National Academy of Sciences — have estimated that the more than 4 percent annual improvement rate to get that 50 percent improvement isn't feasible, based on technology, cost and other factors,” Zetsche said. “Second, I pointed out that there is a place where we've already accomplished that 50 percent improvement ... it's called Europe. In the U.S, the fleet averages around 24 mpg. In Europe, the fleet averages 36 mpg. There's your 50 percent improvement!"
Zetsche said that because the automakers are in both the United States and Europe, with access to the same technologies, the answers must lay elsewhere. One big difference for the disparity, he noted, is in the European approach to energy policy: "They've made some tough choices. They've highly taxed gasoline. They have incentives on diesel fuel, and they pattern emissions standards to accommodate diesel.
"In Europe, the price of fuel is almost three times that here in the U.S.,” he explained. “So, fuel economy is always high on customers' list, and not just when there's a spike or shift in gas prices."
Zetsche stressed that he wasn't advocating high taxes: "While far from perfect, Europe has created policies that leverage market forces, not ones that fight them." He said that, with earnest dialogue between policy makers and automakers and with consumers in mind, solutions specific to America can be found. "We need a policy that fits the market here."
Ahead of the regulatory curveHe mentioned a current study that expects diesel acceptance rates in the United States to hit 15 percent by 2015. Zetsche also described the significant advantages of modern diesel engines.
