Unseen Effects of Regulation

Got to laugh to keep from crying. Volvo, highly revered in Boulder County, introduces a new efficiency concept car with a clean burning diesel engine and a new efficient transmission. It will lower emissions and improve fuel economy. But don't detail your Prius for trade-in value just yet:

Unfortunately, Volvo has no plans to introduce the Powershift or the diesel into the U.S. market. Apparently certifying the new engine for the U.S. market is too expensive at this point. And they’re unsure if there is enough customer support to back the effort. Too bad. We think both the transmission—and the diesel—would do quite well here.

Insty linked to this over the weekend and has also linked to 70+ MPG VW diesel cars. But none of them will be available here, because of our regulatory hurdles, designed (everybody now) to increase fuel economy and decrease emissions.

Frederic, call your office.

Posted by John Kranz at August 27, 2007 12:05 PM