Report by Ceres

This Analyst Brief evaluates the economic impacts of retaining or weakening the current Corporate Average Fuel Economy (CAFE) and greenhouse gas (GHG) regulations on automakers and their suppliers under four fuel price scenarios. We conclude that the auto industry would be profitable in all credible fuel price scenarios under current standards, and that weakened standards would lead to supplier business losses and, in the event of a future fuel price shock, a higher risk of Detroit 3 market share losses.

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