Ford CEO Alan Mulally has told reporters at the Management Briefing Seminars today that higher fuel taxes would be a better alternative to raising Corporate Average Fuel Economy (CAFE) to reduce fuel usage and emissions. The CAFE proposal being voted by the US government would see carmakers forced to lift their fleet average fuel economy figure to 35mpg for cars by 2020. However, according to Mulally, more efficient cars won’t actually make consumers use less fuel.
“The numbers being talked about today are not technically possible,” Mulally explained in regards to the CAFE proposal, adding that a better solution would be to tax fuel more at a higher rate, similar to what they do in Europe where prices can reach up to $6 per gallon.
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