CAFE standards

Canada has said it will set a single "tough" tailpipe emission standard that will apply to 2011 model cars and light trucks. It will be identical to the federal corporate average fleet fuel economy (CAFE) standard announced by President Obama on March 27.

Canadian automakers welcomed the government's plan, which is your first sign that it must be flawed. Why are they pleased? Consider these two reasons:

(1) The Obama administration's interim standard for 2011 is weak -- even weaker than the standard proposed by President Bush last year.

(2) Canada's "single," "mandatory" standard will preempt provinces from adopting the more stringent limits of the California standard, to which four provinces have already committed.

Detroit’s Big 3 automakers may finally be gearing up for the auto efficiency age.

Too bad it took so friggin’ long.

Last week, international consulting firm Global Insight, predicted that the Big 3 will have to pay over twice as much as Japan’s top three automakers to meet America’s interim fuel economy standard of 31.6 mpg by 2015.

About $30.6 billion compared with $14.85 billion. And General Motors alone will have to spend $15 billion.

It’s obvious why.