While I think that some GOVT regulation is necessary, I do not think the 35 MPG standard will work. Hear are some of my reasons
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The market DOES dictate what is sold. The prius is a great example of that, hear we have a car that costs more then a non-hybrid competitor, YET still sells at almost full sticker, because people want the green stamp of approval. However looks at the Accord, Camary, and highlander as a few examples of how Hybrids don?t work as people do not get the same green stamp of approval from there friends and neighbors.
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I don?t believe there is an reason that a car company today would not have a more fuel efficient fleet of vehicle if it was technologically possible. This would be a HUGE competitive advantage, and that is what truly drives the market.
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Despite what some people think, not every one can make do with a compact car, many family?s need suburbans, and mini-vans, etc to get around. Pick up trucks are NECESSARY PART OF MANY PEOPLES LIFES. It would be great if every one drove a Metro or a Civic, or Corolla… what ever, but this is not practical. Bob Lutz put it best when he said that telling automakers that they MUST make cars/trucks that get 35MPG + is like telling America, your fat so we are going to only make small sized clothes so that you have to loose weight. The argument just does not work.
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I am in favor of a tax at the pumps, if you must drive a vehicle that does not get high MPG this should be your right. But if the price of gas hits $4-5 a gallon you will see many people who are driving these inefficient vehicles because of there “bling”, or “status” stop driving them as often.