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> Revised regulations that incentive smaller cars would solve a lot of problems.

I agree wholeheartedly, but the change in the CAFE standards had another effect that was just as important: it allowed Ford and GM to get out of the market for actual cars (sedans, coupes, and station wagons) almost entirely. Changing back to the CAFE standards from 2007 would probably decimate their current business model, and the political backlash would be severe.



If they could switch from making one kind of vehicle to another they can also switch back again.




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