If we sell too many big cars, we’ll have to stop building them. Then we’ll have to ram small cars down consumers’ throats and use dealer incentives to get rid of them so that we can build big cars again. The public is going to rebel because these hard-to-get big cars will then sell for full list or higher when the small cars are being given away.
The conflict between government standards and market demands is increased by the rollback of petroleum prices and extension of petroleum price controls at the same time. By making gasoline cheaper, congress has encouraged consumer demand for larger cars, while at the same time imposing fuel economy standards that require stronger demand for small cars.
We have consistently opposed mandatory fuel economy standards as unnecessary. Because it is clearly in our self interest to meet customer requirements on fuel economy improvements, as demonstrated by our own high mileage m.p.g. small cars recently announced.
Ill-considered arbitrary fuel economy legislation could delay progress in conserving gasoline, extend unemployment, and restrict economic progress. It also could deny the choice of vehicles desired and needed by a large number of Americans.
The more efficient new cars won’t save a drop of gas until they’re purchased. If they don’t sell, not only energy conservation, but pollution and safety improvements will be set back.
We have stated that the full-size car market can’t be ignored because it is accounting for 30 percent of domestic auto sales for the model year. Chrysler does not intend to, and would not, abandon a market segment of that size and importance to automotive buyers.
Absent a significant technological breakthrough. . . the largest car the industry will be selling in any volume at all will probably be smaller, lighter, and less powerful than today’s compact Chevy Nova…
In effect, this bill would outlaw a number of engine lines and car models including most fullsize sedans and station wagons. It would restrict the industry to producing subcompact-size cars — or even smaller ones — within 5 years . . .