Obama Wants You Driving Clean

Clean in terms of emissions that is.  In a move that is sure to make environmentalists happy, Barack Obama has told states that they are in control of the emission standards on their respective land.  According to globeandmail.com this move has some important ramifications:

“Mr. Obama’s decision will let California and other states set their own auto emission standards in their drive to slash greenhouse gases, an official familiar with the decision said Sunday.

The move is significant on two fronts: It could empower states to set tougher standards in targeting emissions, which are blamed for contributing to global climate change; and it would be another swift reversal by Mr. Obama of Bush administration policy, this time on energy.”

It might come as a shock that Obama chooses this period in time to change the standards of the game.  This move will undoubtedly mean that GM, Ford, and Chrysler are going to have to spend more on research and development and start cranking out cars that meet muster across the board.  I guess some of that bailout money is going to be going right into these smaller cars so that the big three can really keep up in the market.  It will also be interesting to see how automakers like Honda and Toyota react to the new legislation.  Will they now be forced into making mostly small eco-friendly cars?

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