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Wash. Times continues to publish false claim that Big Three autoworkers earn average of $70 per hour or more in wages and benefits

December 03, 2008 11:41 am ET
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SUMMARY: An editorial and a column published in The Washington Times included the false claim that U.S. autoworkers earn an average of $70 an hour or more in wages and benefits. In fact, according to General Motors, the figure is based not only on current workers' hourly wages and benefits, such as health care and retirement, but also retirement and health-care benefits that U.S. automakers are providing for current retirees.

30 Comments

In a December 3 column published in The Washington Times, syndicated columnist Jack Kelly falsely claimed that "GM, Ford and Chrysler pay their employees an average of $73 an hour." Similarly, in a December 1 editorial, the Times wrote: "As Washington Times reporter David M. Dickson recently reported [in a November 24 article]: 'Before contract negotiations between the UAW [United Auto Workers] and General Motors commenced last year, UAW workers earned between $70 and $75 per hour in wages and benefits.' " In fact, according to General Motors, which reportedly puts its current hourly labor costs at $69, this figure is based not only on the cost to the auto companies of current workers' hourly wages and benefits, such as health care and retirement, but also of retirement and health-care benefits that U.S. automakers are providing for current retirees, as Media Matters for America has noted.

As Media Matters documented, on November 28, the Times published an op-ed by Heritage Foundation president Ed Feulner in which Feulner falsely claimed that "UAW employees earn three times as much as an average blue collar worker makes - $75 per hour on average in wages and benefits." Numerous other media figures have also advanced the falsehood that autoworkers earn $70 or more per hour in wages and benefits, some using it to blame autoworkers for the domestic auto industry's financial straits.

From Kelly's December 3 column:

Soaring gasoline prices in the summer and the stock market crash in the fall have made their illness acute, but the "Big Three" have been losing money for years. The chief reason is their higher labor costs make their cars about $2,000 more expensive than comparable foreign models.

General Motors (19 percent) and Toyota (18 percent) have about the same share of the U.S. car market. But Toyota has enormous efficiency advantages. GM has eight product lines, Toyota three. GM has 7,000 dealers, Toyota, 1,500. Toyota pays its workers in the United States an average of $48 an hour. GM, Ford and Chrysler pay their employees an average of $73 an hour. For GM to have a chance to become competitive, it must cut its product line at least 50 percent, its dealer network at least 50 percent, and its labor costs at least 30 percent.

But any bailout that's acceptable to the United Auto Workers - and thus to the Democrats in Congress - will be designed to avoid the pain such cutbacks would inflict.

The current environment for auto sales is toxic, and is likely to remain so for at least a year. This means ever more and ever larger subsidies will be required to keep the doors of the Big Three open. Eventually taxpayers will run out of patience, or milk. To avoid discomfort now, we court catastrophe a short distance down the road.

If the Big Three sought Chapter 11 bankruptcy protection now, one strong company could emerge from the wreckage. Surely the United States would be better served by having one healthy car company instead of three terminally ill ones. But good sense, alas, rarely makes political sense.

From the Washington Times' December 1 editorial:

The American auto industry's "Big Three"(Chrysler, General Motors and Ford) have asked Congress to help their failing companies with a $25 billion cash injection. The loan - unlike the other $25 billion offered, which they did not use - would be made on an emergency basis to help keep operations open. Essentially, automakers were being asked to revamp facilities on their own dime and then be paid back by the Department of Energy. Much of the Big Three's financial problems stem from the irresponsible contracts its members have signed with the United Auto Workers (UAW).

As Washington Times reporter David M. Dickson recently reported: "Before contract negotiations between the UAW and General Motors commenced last year, UAW workers earned between $70 and $75 per hour in wages and benefits. International firms paid their nonunion workers about $45 per hour in wages and benefits. The hourly cost differential was between $25 and $30."

That disparity will be reduced over time as the new contract is implemented- [with wages leveling off to] an average of $40-45 an hour at GM. Quite clearly, union autoworkers have enjoyed salaries that are far beyond what their companies can afford, especially as sales have slowed by 10 percent during the economic downturn this year. It is important to note that foreign automakers have fared better by placing their plants in right-to-work states, as opposed to states with compulsory unionism like Michigan.

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    • Author by commonsenseliberal (December 03, 2008 12:03 pm ET)
         

      OK, OT a tad, knowing that this $70/hour thing is misinformation (disinformation to an extent), what if they really were making $70/hour?  I'd say, 'good for them.'  The blue collar worker deserves more than what s/he is making now.

      That being said, why the hell are the conservatives even playing with this type of fire?  Yes, we all know how bad unions are (eye roll - sarcasm for those who didn't catch it), but behind the unions are blue collar workers, regular Joes, even Joe the Plumber, who struggle to meet the mortgage, put food on their children, and send their tables to college.   (come on, we gotta make fun of GWB at least one more time).  Unions represent the regular worker - so why are conservatives, who claim to be for the regular guy, so against unions?  It makes no sense - but what part of Conservatism does?

      Report Abuse
      • Author by Victor Colorado (December 03, 2008 12:08 pm ET)
           

        Sorry, but I have trouble getting past the fact that it's simply flat out false to claim that GM, Ford and Chrysler pay their employees an average of $73 an hour.  It's just not true.  They get paid less than half that.

        Report Abuse
        • Author by commonsenseliberal (December 03, 2008 4:49 pm ET)
             

          I agree.  I hope you don't feel as though I'm supporting this false claim of $70/hour pay.  I'm only saying that if they were making $70/hour, good for them.  At least the blue collar folks would be getting ahead.

          The media is continuing to be disingenuous with regards to how they are calculating the hourly wages of auto manufacturers.  I understand that they only make in the range of $25-$35/hour.

          Report Abuse
      • Author by nerzog (December 03, 2008 12:14 pm ET)
           

        Republicans have worked very hard to keep the minimum wage so low that whatever the UAW workers actually make seems like a fortune.  Meanwhile, they support policies which disproportionately benefit people making $500/hour and more.

        Disingenuous much?

        Report Abuse
        • Author by Col. Harlan Sanders (December 03, 2008 12:23 pm ET)
             

          It's interesting to listen to the am radio wingnuts on the subject of labor & unions. Even in the context of the rest of righty radio, there's such a pile of fantasies and contradictions that it's hard to believe the audience buys it.

          The general theme is that union emloyees are mostly shiftless robots (this is backed up by urban myths and rumors from callers), union leaders are mobbed up, corrupt predators, and the average Ameican is a hard working entrepeneur who makes over 250k, but gets most of it "stolen" by the gov't in taxes.

          And the GOP just wants to fix all of this.

          Report Abuse
          • Author by nerzog (December 03, 2008 12:52 pm ET)
               

            Back in my misspent youth, when I was a Republican, I believed a lot of that stuff, too.

            I'm not sure what turned me around.  I know that part of it was when the  Republican party was crashed by the Religious Right Nutbags... and listening to Rush Limbaugh's Hate Parade for several years didn't help, either.  I didn't want to be mistaken for someone who actually thought Rush was right about..... anything.

            Report Abuse
            • Author by commonsenseliberal (December 03, 2008 4:51 pm ET)
                 

              I was also 'raised' as a Republican.  It was what our family 'was'. 

              Since I went to that liberal G-d hating university, I've changed my ways.  Now, I believe in supporting the worker first.  Therefore, I must be a leftie. ;)

              Report Abuse
          • Author by worrierking (December 03, 2008 12:58 pm ET)
               

            Damn!

            I was a union official for more than fifteen tears. I was willing to be corrupted for a price but no one ever offered one.

            I got into it for the mob ties and the payoffs and i didn't get either.

            Report Abuse
            • Author by Col. Harlan Sanders (December 03, 2008 1:32 pm ET)
                 

              And you called yourself a union man! *spitting in general direction of WK's shoes*

              Report Abuse
      • Author by snoopy (December 03, 2008 4:49 pm ET)
           

        considering jeb bush said the other day that conservatives needed to run people who look like the people they need to attract to their brand, methinks conservatives aren't wanting blue collar workers in their itsy bitsy little white tent...

        Report Abuse
        • Author by commonsenseliberal (December 03, 2008 4:52 pm ET)
             

          F Jeb Bush.  He's just as mindless as his father and brother.

          Report Abuse
    • Author by neon desert (December 03, 2008 12:16 pm ET)
         

      If your average UAW member is getting in the neighborhood of $40/hr in the form of insurance and pension, it seems to me that the more important question right now would be how anyone could expect your average $10/hr Wal*Mart employee to afford insurance or any kind of retirement...

      Report Abuse
      • Author by nerzog (December 03, 2008 12:24 pm ET)
           

        Exactly!  That is the point being lost in this debate;  the average American is looking at a diminished future unless things are turned around.

        When I was a kid, I knew a lot of people who had spent years working in Detroit in the 50s and 60s.  It was a virtual Mecca for people seeking good jobs.  There was a time when blue collar workers had a chance to earn a good middle class income in America, but those days are vanishing.

        I think that's the real class warfare going on here.

        Report Abuse
      • Author by Col. Harlan Sanders (December 03, 2008 12:36 pm ET)
           

        That's easy, Neon. The union guys getting that overpriced, corrupt union insurance, while the WalMartian has the freedom to go get hisself some of that Great American Free Market insurance for The Best Health Care System in The World (Source: Sean Hannity)

        Almost on-topic, I have some of my insurance through GEICO, which , while a private company, was originally designed to insure government employees (Gov. Employees Insurace Co., in case the acronym isn't well own). I pretended to switch some policies to them because I liked the cost and the organization, but I'll be  honest and admit that it 's a small step toward radical socialism. Somehow.

        Report Abuse
        • Author by nerzog (December 03, 2008 12:45 pm ET)
             

          And I thought it was named after the lizard...

          Have to admit, that's been a successful ad campaign, at least in terms of branding.

          Report Abuse
          • Author by Col. Harlan Sanders (December 03, 2008 12:47 pm ET)
               

            And I meant "well known", not "well own". I think I need a new keyboard, letters are mysteriously disappearing.

            Report Abuse
            • Author by neon desert (December 03, 2008 1:05 pm ET)
                 

              Probably one of those union-made keyboards.  The domestic keyboard companies have no choice but to cut corners to compete with the Korean keyboard manufacturers, thanks to outrageous union demands and unreasonable federal mandates.

              Report Abuse
              • Author by Col. Harlan Sanders (December 03, 2008 1:35 pm ET)
                   

                don't forget all that "PC" gov't regulation demanding that most of the Spanish alphabet be included on all keyboards, and that the keys aren't too pointy or explosive.

                Report Abuse
                • Author by eweston8542983 (December 03, 2008 3:15 pm ET)
                     

                  Are they making new use of one of the early plastics? Nitrocelulose is a wonderful chemical. Shirt collars and maybe pool table balls were made of it. Artillary people also used it as gun cotton.

                  It brought fresh meaning to the phrases "Hot under the collar". and "Running the table."

                  Report Abuse
            • Author by snoopy (December 03, 2008 4:51 pm ET)
                 

              If it's a Dell, maybe they forgot to translate from chinese to english?

              Report Abuse
      • Author by LarryE (December 03, 2008 3:13 pm ET)
           

        $40/hr in the form of insurance and pension

        They're not. By industry figures, the average total compensation for an autoworker is about $41/hour - that includes base pay of about $28-30/hour based on the skill level of the particular job plus every single benefit. Not just "insurance and pension" but sick time, vacation time, holiday time, overtime, shift differential, everything. Including (and I bet you didn't think of this) employer share of Social Security and Medicare payments plus employer contributions to unemployment and workers' comp funds - all of which is required by law.

        The rest of the bogus $70/hour figure is the "legacy" costs, pensions and insurance for retirees.

        My own take on all this is here, if anyone is interested.

        Report Abuse
        • Author by eweston8542983 (December 03, 2008 3:20 pm ET)
             

          Comprehensive take on it.

          Report Abuse
        • Author by oscar the grouch (December 03, 2008 8:01 pm ET)
             

          LarryE,  good review of the situation.  However, let's take another look at this situation.  My figures are not exact, but I believe they are close enough to make the point.

          GM in a recent year produced about 4.5 million vehicles in the US, using about 80,000 members of UAW in the endeavor.  This translates to each UAW member being responsible for about 56 vehicles. At $30/hr base wage, 2000 hours per year of production (this is a slightly high figure), each UAW member earned about $1100/vehicle.  At $10 million per year as CEO, that person earned about $2.25/vehicle.  The big problem I see for the big(?) three is the layers of people between the floor and the top level of management and an overabundance of model choices.  GM, for example, makes too many parallel brands.  What does GMC offer that Chevy doesn't in the way of trucks and SUVs?  Why is there a Chevy, a Pontiac and a Buick division?  Why couldn't body styles be changed on a 3 - 5 year cycle rather than 1 - 2 year? Sure, this means substantial changes in the white collar work force, along with changes on the floor, but continuing to lose around $4000/vehicle cannot continue. I'm not advocating bankrupcy, but it has to be an option. 

          Report Abuse
          • Author by LarryE (December 04, 2008 9:03 am ET)
               

            I don't know that the $/car comparison between line workers and CEOs is particularly useful; no matter how you slice or dice it, it still comes out that the person making the cars gets $60,000 and the person responsible for the decisions that screwed things up gets $10 million - in fact, in the example I cited, gets $14 million even as his company is losing $40 billion.

            As for the rest, it sounds like it's meant as a rebuttal to what I wrote but I don't see it as one. Rather, it's making some specfic proposals for just what changes should be made, which I didn't do; on that front, which wasn't what I was addressing and so was really just a sidebar, I limited myself to saying there must be changes in how the companies do business.

            As for bankruptcy, I wrote that it would be worse than the proposed loan but that if that loan does not come with specific provisions involving protecting workers and changing the way Detroit does business, we might as well go straight to bankruptcy because we'll wind up there anyway. So again, I don't see a conflict between us.

            One other point on compensation and then I'll let this discussion go; if we want to go into it more, we can do it at my place: The total hourly compensation to an average unionized autoworker (pay plus all benefits, including things like employer contributions to Social Security, Medicare, and state unemployment insurance and workers' comp funds) runs to something like $41 or $42. But according to Census Bureau calculations, that same worker adds $206 per hour to the value of the product. In terms of whether or not the workers are overcompensated, I think that measure - productivity - is a much better (as well as being a standard) yardstick.

            Report Abuse
            • Author by oscar the grouch (December 04, 2008 8:12 pm ET)
                 

              I'm not going to argue that the CEO makes too much in relation to the company's "success".  Rather it is to point out that the wages paid, be they $30/hr, $70/hr or $10 Million per year, are not the core of the problem. When GM loses $40 Billlion a year (about $5000/vehicle), labor costs, floor and at the very top, could be zero and the loss would still be well over $3000/vehicle. I guess if I had all the solutions, I could apply for the top spot, but it's pretty plan to me, there is something dreadfully wrong with their business model.  And will a short term loan solve that problem?

              Report Abuse
    • Author by snoopy (December 03, 2008 5:00 pm ET)
         

      I've heard a few rumblings already of righty tighty's saying pelosi and the dems are to blame because they supposedly keep talking down the auto industry. Let's just put that little pant wetting rant to bed, shall we?

      The Consumer’s Truth Myths and Facts about American Consumers and Fuel Economy

      Manufacturer Myth – American consumers like gas guzzlers and are not interested in technology that will save them money and help the environment.

      Consumer Fact – Fuel economy is one of the top concerns of drivers in the U.S.

      • Too-high fuel consumption ranked second in a list of all driver complaints gathered in a May 2003 J.D. Power and Associates poll.

      • Hummer owners, according to the same poll, ranked Hummers last in a list of 36 brands, registering almost twice as many complaints about their vehicles as did other owners, many of which concerned the Hummer’s extremely low fuel economy.

      Consumer Fact – The demand for hybrid-electric vehicles has been significantly underestimated by automakers.

      • Increased gas prices and general economic downturn are leading consumers to trade in their gas-guzzlers for more fuel-efficient vehicles.

      • The waiting lists at Honda and Toyota dealerships for hybrid vehicles are now up to 10 months long.

      Consumer Fact – American consumers favor fuel economy increases and want to wean the U.S. off of foreign oil.

      • Sixty-one percent of Americans favor increasing the fuel efficiency requirements to 40 miles per gallon (mpg), even if it increased the price of cars.

      • Ninety-three percent of Americans believe the United States should require cars to get better gas mileage to reduce our dependence on foreign oil.

      • Sixty-one percent of labor union households agreed that “increasing fuel efficiency is the single most effective action that could reduce national dependence on foreign oil.”

      • Eighty-one percent of consumers “approve of the government requiring car manufacturers to meet higher fuel efficiency standards than they do now.”

      Consumer Fact – American consumers want to save money at the pump, even if it costs them more money up front.

      • Seventy-six percent of pickup drivers favor increasing the fuel economy of pickups. An overwhelming 87 percent surveyed said that they would be willing to pay $500 additionally for a higher-mileage pickup when told that they could expect to save $2,000 worth of gasoline during the life span of their truck.

      • Sixty-one percent of Americans believe that greater conservation of energy supplies is an important piece of the solution to our energy problems.

      Consumer Fact – American consumers will pay more for their vehicles because they value a cleaner environment and want to address global warming.

      • Sixty-three percent of Americans polled said they would be willing to pay 3 percent (or nearly $900 on a $30,000-vehicle) more for their sport utility vehicles in order to solve emissions problems stemming from their use.

      • Seventy-five percent of predominantly Republican and Independent voters in New Hampshire “favored increasing fuel economy to address global warming, even at an extra cost of $300.”

      Manufacturer Myth – The auto industry merely “follows the market” for SUVs.

      • During the last decade, automakers and their dealers spent over $9 billion advertising SUVs. This ever-increasing expenditure rose nine-fold during that time, from $172.5 million in 1990 to $1.5 billion in 2000 – a rise that exceeds, in percentage, the growth of SUVs over the same period.

      • The auto industry spends more per year on advertising than any other industry in the United States – more than the next three biggest spenders (financial services, telecommunications, and national restaurant chains) combined.

      • For total advertising spending in 2001, the Big Three American automakers ranked #1 (General Motors), #3 (Ford), and #6 (DaimlerChrysler) among corporate spenders.

      • Per advertising dollar spent, the Big 3 have three times the revenue of the other top ten spenders, averaging $42.30 for every ad dollar spent compared with $13.67 for the other seven companies.

      Consumer Fact - Manufacturers have a huge financial investment in the attempt to persuade consumers to purchase SUVs.

      • Cut-rate designs based on pickup truck chassis and low fuel economy requirements for SUVs generate very high profit margins for these “cash cows” of Detroit.

      • While manufacturers make only a 3 percent profit on cars, they make 15 to 20 percent profit on SUVs. This means that while manufacturers reap around $1,500 profit for a compact sedan, they rake in about $10,000 on SUVs.

      • SUV and pickup truck sales account for nearly all of the profits of the Big Three auto companies. For example, in 2002 General Motors generated 90 percent of its profits from SUVs and pickups.

      • Domestic manufacturers were protected until the mid-1990s by a tariff which imposed costs on foreign manufacturers, discouraging the importation of SUVs and helping to create crucial leverage for Detroit in that market sector.

      • The largest SUVs receive special breaks on key safety laws, helping to generate more profit. SUVs over 8,500 lbs. are held to a less protective side impact standard than applies to cars and need not meet any roof strength standard. In addition, the largest SUVs need not install new anchorage systems to accommodate child restraints.

      Consumer Fact – Special tax breaks for small businesses allow huge write-off’s for SUVs, further distorting the market and generating a false demand.

      • Thanks to the recent Bush tax cut, when businesses purchase an SUV (or other light truck) over 6,000 lbs., they can immediately deduct $100,000 dollars, paying in full for every vehicle over 6,000 lbs. except the Hummer.

      • These special interest tax breaks do not preclude businesses from taking the standard 20 percent deduction annually over five years.

      • It is estimated that the original SUV tax break, which capped initial deduction at $25,000, cost the federal government between $840 million and $987 million yearly, making it one of the biggest tax breaks, per capita, in the U.S.

      Consumer Fact – Deceptive advertising about SUVs drives their popularity and misleads consumers about their safety.

      • Despite being marketed to consumers as rugged, go-anywhere vehicles, only 1 to 10 percent of SUV owners use their vehicles for off-road driving or towing.

      • Jeep Grand Cherokees, for example, were marketed with ads calling the vehicles “Still the best insurance policy ever” and touting their existence as “one of the safest 4x4s out there” with a “legendary four-wheel drive [that] shows no fear in the face of a blizzard [and a] braking system [that] helps you stop even when the rain or sleet or snow hasn’t.” Similar ad campaigns have been launched to hype most SUVs.

      • But J.C. Collins, Ford’s top marketing manager for SUVs said “[t]he only time those SUVs are going to be off-road is when they miss the driveway at 3 a.m.”

      • And Csaba Csere, the editor in chief for Car and Driver magazine said in interviews that “the bottom line is that, in every measurement of dynamic ability on pavement, cars outperform trucks,” effectively denying the myth that SUVs handle better than cars in the most common hazardous conditions.

      • In April 2003, 40 state Attorneys General called on SUV manufacturers to immediately stop their misleading advertisements claiming that SUVs have the same handling as passenger cars, or that SUVs can handle emergency procedures safely at fast speeds. The letter was one result of a $51.5 million settlement with Ford over deceptive advertising of its Explorer.

      Consumer Fact – The market does not always know best, and Congress has a responsibility to act for consumers to preserve other American values, such as reducing dependence on oil and asthma- and cancer-causing air pollution.

      • Passenger vehicles consume 8 million barrels of oil every day, constituting about 40 percent of all U.S. oil consumption.

      • Between 1990 and 1999 oil consumption in the U.S. rose 15 percent and American oil imports rose 40 percent. If that trend continues, by 2020 64 percent of oil used in the U.S. will be imported.

      • The U.S. currently spends almost $200,000 per minute to purchase foreign oil.

      • U.S. passenger vehicles alone produce more carbon dioxide pollution than all but three countries worldwide (China, Russia, and Japan) – amounting to almost 5 percent of total worldwide CO2 emissions.

      • Air pollution caused by cars and light trucks produce a literally breathtaking amount of U.S. air pollution, second only to electricity generation.

      • The shortsightedness of automobile manufacturers should not blind Congress to the right road. During the 1970’s oil crisis, the original fuel economy standards that had been strongly opposed by manufacturers, helped to save the industry from the onslaught of foreign competition during the 1979 oil crisis and the high interest rates that followed.

      Manufacturer Myth – Consumers currently have the right information to choose a vehicle that best suits their needs.

      • Currently consumers are provided, at the point of sale, with labels that explain the highway and city fuel economy estimates for each vehicle. Consumers are not, however, given pointof-sale, in-depth information about the safety hazards of the vehicles that they plan on purchasing even though that information is routinely gathered by both the National Highway Traffic Safety Administration (NHTSA) and manufacturers and NHTSA has authority to require them.

      • Consumers savvy enough to navigate NHTSA’s on-line information in the New Car Assessment Program (NCAP) are able to view some safety information on the select vehicle models tested each year by the agency. But many consumers have no access to the Internet or are unaware that the information exists. NHTSA’s own research shows that only about 1.5 percent of consumers would consider researching auto safety issues by contacting a federal agency, while about half would think to request safety information from auto dealers, where there is no independent test information available.

      Consumer Fact – Manufacturers oppose measures that would make vehicles safer, and continue in their attempts to keep such hazards a secret from the public.

      • Manufacturers have historically opposed safety standards, such airbags and seatbelts, and they continue to hinder safety efforts through their opposition of measures to reduce rollovers, particularly in SUVs and light trucks, and roof crush standards that would help make rollovers more survivable.

      • In 1994, pressure from the industry killed a federal minimum standard on rollover prevention, which would have saved thousands of lives. The key argument automakers used to kill the safety standard was the cost for an SUV-redesign. New data shows that SUV rollovers are now the leading cause of the increased death rates on U.S. highways.

      • Ford imposed secret settlements on killed and injured plaintiffs in Ford Explorer cases throughout the 1990s and never told Federal safety regulators. At least 271 people died in Ford/Firestone crashes in the U.S. alone and over 700 were severely injured.

      • General Motors successfully resisted a recall of 9 million C/K Pickups that had exploding gas tanks which have led to the fiery deaths of over 725 people. GM has reached 331 individual settlement agreements totaling $495 million in payouts.

      • Automakers continue to press NHTSA to keep early warning safety defect information, a collection mandated by Congress in the TREAD Act of 2000, a secret from the public. A decision is pending from the agency after heavy industry lobbying and threats of litigation.

      • Making vehicles capable of reaching 140 miles per hour, twice the speed limit, increases incentives among young vulnerable drivers to speed and get involved in crashes and wastes fuel simultaneously.

      Manufacturer Myth – The explosion of SUV sales increases safety for everyone.

      • In a report on the risks of rollover crashes, NHTSA explains that, “the increase in light truck occupant fatalities accounts for the continued high level of overall occupant fatalities, having offset the decline in traffic deaths of passenger car occupants.”

      • New federal data shows that SUV and pickup truck rollover fatalities accounted for 53 percent of the increase in traffic deaths between 2001 and 2002.

      • Guardrails on many roads are too low to effectively protect SUV drivers, and will cost millions of dollars to upgrade.

      Manufacturer Myth – Increased CAFE standards will force consumers to drive “purple people eaters.”

      Consumer Fact – Manufacturers have always “cried wolf” about their inability to make improvements in fuel economy.

      • Manufacturers made the same claims in the 1974 CAFE debates. Ford claimed that under the proposed standard they would only be able to produce “sub-Pinto sized vehicles.” Daimler/Chrysler argued that the standards would lead to the outlawing of numerous engines and car models, in effect restricting the industry to produce only “sub compact size cars – or even smaller ones.” And General Motors, calling CAFE “an unjustified interference with individual freedom,” claimed that their sales would be reduced to vehicles “smaller, lighter, and less powerful than today’s compact Chevy Nova.”

      • Regardless of these protests, manufacturers doubled the fuel economy of passenger vehicles between 1977 and 1990 and continue to make large and mid-sized vehicles.

      Consumer Fact – Obviously, this nightmarish world devoid of choices for consumers has never materialized.

      • A Department of Energy study showed that over 85 percent of fuel economy improvements were achieved through technology – not by weight reduction or a limit of vehicle choices.

      • Thanks to the reality of technological ingenuity, market dynamics and ever increasing competitiveness among manufacturers, consumers have more vehicle choices now than ever before.

      Consumer Fact – Heavily marketed, highly profitable SUVs are the real people eaters.

      • SUVs are marketed with a kill-or-be-killed mentality, hyping the dangerous potential of SUVs to other motorists. The 1998 Lincoln Navigator was advertised as an “Urban Assault Luxury Vehicle” and recent Hummer campaigns have used menacing phrases such as “Teach cabbies some respect,” and “Threaten a man in a whole new way.”

      • And the high kill rate of SUVs makes their aggressiveness the major tragedy of today’s roadways. According to federal crash statistics, when an SUV hits the near side of a passenger car, the driver of the passenger car is over 16 times more likely to die than the driver of the SUV.

      • One former NHTSA Administrator estimated in 1997 that the aggressive design of light trucks (a category including SUVs, pickup trucks, vans and minivans) has killed 2,000 additional people needlessly each year.

      Consumer Fact – The rise in SUVs and other trucks has erased many of the gains made by decades worth of automobile safety improvements.

      Consumer Fact – Manufacturers have long opposed point-of-sale labeling that would give consumers information about vehicle safety and efficiency and that would allow them to make a truly educated decision about which vehicle is best for them.

      Consumer Fact – The auto industry spends billions to advertise SUVs, which are by far their most profitable products.

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