In response to the Arab oil embargo of 1973-4, Congress passed the Corporate Average Fuel Economy (CAFE) in 1975, which required an increase in automobile fuel economy of 14.2 miles per gallon in 1974 to 27.5 miles per gallon in 1984. Since then, Congress has made no changes in the CAF, with efforts in 1990 and 2002 as a disadvantage. By 2007, however, circumstances have changed so that the Congress is preparing to take a 40-percent increase in the need for efficient use of fuel. Although the automotive industry initially opposed any significant increase in the seemingly inevitable increase in the industry believe instead focus on the details of the legislation and how to influence these parts. This case is the response of the automobile industry in anticipation of increased fuel efficiency, the creation of assessment strategies in the industry to help develop legislation. "Hide
by David P. Baron Source: Stanford Graduate School of Business 9 pages. Publication Date: August 20, 2008. Prod. #: P58-PDF-ENG
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