Fuel Economy Standards 2007 Harvard Case Solution & Analysis

Reacting to the 1973-4 Arab oil embargo, Congress enacted a Corporate Average Fuel Economy (CAFE) system in 1975 that needed an increase in auto fuel economy from the 14.2 miles per gallon in the year 1974 to 27.5 mpg in 1984. Since that time period, Congress had made no alterations to CAFÉ, with attempts in 2002 and 1990 both failing. By 2007, however, circumstances had changed enough that Congress was poised to enact a 40 percent increase in necessary fuel efficiency.

Although the automobile industry had initially contrasted with any important increase, the increase that was seemingly unavoidable convinced to business to focus on details of the pending legislation and the best way to influence those details. This case explores the result of the auto industry to the pending fuel efficiency increases, setting up an assessment of the industry's strategy to help craft the legislation.

PUBLICATION DATE: August 20, 2008 PRODUCT #: P58-HCB-ENG

This is just an excerpt. This case is about ORGANIZATIONAL DEVELOPMENT

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