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Originally Posted by markksman
I want clarification on this because I believe states have some say in they can enact stricter regulations so California alone could essentually keep any changes from happening nationally. California sells so many cars that it simply would nit be effective to build to two different standards and also deal with illegal cars crossing state lines. California has been able to push a lot of environmental issues because of this and in manufacturing standards like cars can counteract federal regulation restrictions.
This doesn't work for everything but cars are certainly one where California basically calls the shots.
It's complicated and you're getting out of my area of the car industry here (I'm in the logistics side), but I believe the main tug of war involving California regards vehicle emissions, which are related to but distinct from fuel economy. Much can be done to make inefficient engines have lower emissions, and you're correct that producing two different variants of the same car would be infeasible. Much less can be done to make large cars fuel efficient. (As a side note, more stringent emissions standards tend to make cars less fuel efficient.)
But the question I'm talking about is the national sales mix of large SUVs (very frequently domestically produced or at worst made in Mexico) vs smaller cars (more likely to be imports from Mexico or overseas). More stringent national fuel efficiency standards will tend to push this more towards smaller cars, which are more likely to be imported given the current production geography.
This is of course no strategy for saving America's auto industry. It's just a minor consequence of having less stringent fuel economy standards.