Fuel efficiency: Potential cash cow for automakers

But the General is not prepared

The University of Michigan released a new study today suggesting that fuel efficiency isn't the big burden many have proclaimed it to be for automakers. Instead, pent up demand for fuel efficiency will result in strong demand for such vehicles.

Unfortunately, however, the report also notes that GM is the least prepared for a move towards fuel efficiency. And while some have suggested relaxed CAFE standards for GM and Chrysler as they emerge from bankruptcy, the report claims such a move would only make GM less competitive into the future.