Re Dick Greenhaus post- Some may not know what CAFE is; I am very poorly informed myself. CAFE (Corporate Average Fuel Economy) regulations were brought in following the 1973 oil embargo by the Arab states. As of 2004, regulations required that the overall average for cars produced by a manufacturer exceed 27.5 mpg, and light trucks (inc. SUVs) exceed 20.7 mpg. In 2006, BMW, Daimler-Chrysler, Volkswagen and some other foreign-owned manufacturers elected to pay CAFE penalties rather than comply with regulations. The EU and Japan have higher standards than the U. S., but these countries are smaller in size, and Americans-Canadians demand vehicles that are comfortable in long distance driving and are capable of handling larger loads.
The National Highway Traffic Safety Administration correlates increasing fatalities with CAFE implementation, since lighter, smaller construction is required in addition to motor efficiency. There is some controversy about this.
The Energy Independence and Security Act of 2007 requires that automakers boost fleetwide gas mileage to 35 mpg by 2020 (there are provisos about practicality, etc.). Many manufacturers have models that approach or equal this standard, but the public has preferred heavier, better equipped models.
Figures in the above are from a quick skim of the Wikipedia entry, which seems to be reasonably accurate. CAHE
Affluent drivers, regardless of country, have continued to demand comfort, space, speed and performance. Often the cars that they buy are cars on which CAFE penalties have been imposed.
The back cover of "Alberta Oil," the magazine cited in the previous post, advertises the Bentley Continental GTC, the super-luxurious British car, which can be seen in the Calgary showroom. It averages something like 11 mpg city and 18 mpg highway. Gasoline in Calgary is about $5.30 a gallon, but in an affluent city, motorists may complain but cut back very little.
The high fuel cost is exceedingly hard on truckers, some of whom cannot raise their fees to completely cover the cost. In spite of western Canada being a major source of tar sands and natural gas, provincial and Canadian Federal taxes are outrageous, although truckers and farmers get some relief. Billions are piling up in Alberta provincial reserves, but spending on infrastructure and medical facilities is low.