Monday, January 26, 2009

Individual State's Emissions Standards - A big announcement

Today in a press conference to a hall of invited guests, the President declared that his administration would support individual States desires for regulation of automotive emissions and efficiency. This would be in contrast to the US EPA setting a national standard to which states must apply for exemption.

To the big auto companies, I would guess that this announcement is pretty much a nightmare, but to the American people, this is a good move forward, conceptually. What it does is to place regulation closer to the consumer and it ought to engender more competition from state to state. This could mean better, faster, development of products. BUT it will take other types of companies besides the current slate of OEMs.

Of course, many of the greatest government plans do not come to fruition, but I would certainly give points to the administration and its policy advisers for starting in a good direction here.

As for Local Motors, this policy would provide a competitive advantage as our Company is geared to operate specifically on a local level. This local focus makes the most sense in today's venture backed developing business economy, because small companies that supply the auto industry are very local and tend to change in focus from one state to the next. Our bet is that such a policy will be more likely than not to allow local, smaller winners with new technology to rise to the surface in their state and then to allow other states to adopt similar policies and standards that allowed such a winner to emerge.

Time will tell, but we are initially encouraged.

Strong Manufacturing....Here in America.

Go Local.

To read more, go to the White House Blog.