Options for auto manufacturers in dealing with fuel supply shortfalls

Auto users' initial responses to an energy emergency will include the elimination of discretionary trips, linking of essential trips, increased ride-sharing, and greater attention to matching vehicle characteristics to trip purpose. These immediate behavioral changes will be followed by changes in both new and used car buying preferences, reflecting renewed interest in fuel economy and range. Strategies that are being (or might be) employed by the auto manufacturers to anticipate these sudden changes in their customers' preferences include implementation of flexible production technology, use of marketing techniques that recognize small market segments, e.g., for micro-mini automobiles, introduction of new, flexible methods of vehicle availability including leasing and home-based pools, development of vehicles that use methanol and other non-petroleum fuels and more extensive use of advanced engine and drive train technology that provides improved fuel economy without sacrificing size and weight. The government can contribute to successful implementation of these strategies by further relaxation of energy price regulation and implementation of other policies to promote or permit development of both petroleum and synfuel supplies. Attempts at arbitrary allocation of supply or regulation of efficiency would be counterproductive.