Monday, October 13, 2008

Bloomberg Strikes Again: Cab Shortage Due To Fuel Economy Mandates

Next time you're in New York City and you try to hail a cab and think to yourself why you're having a difficult time of it, you can thank Mayor Mike Bloomberg.

You see, he's decided that the city's cabs must be more fuel efficient. The City imposed fuel economy standards on all new cabs, which means that if you want a new taxi medallion, you've got to pony up for a new hybrid vehicle or another vehicle that meets the fuel economy standards.

That is to say, you're stuck with limited options.

You get a Ford Escape hybrid, a Prius, a Chevy Malibu hybrid, and that's about it. Everything is pretty much sold out, and if you're looking for the ubiquitous Ford Crown Victoria, you're out of luck since they're no longer in production.

Oh, and did I mention that there are insufficient hybrids to cover the taxi industry's needs?
And although fleet owners are being allowed to buy more of the gas-guzzling Crown Victorias as they battle Bloomberg's green-taxi rule in court, they're still in a jam because Ford has already stopped making that model due to the mayor's edict.

Even the biggest car dealerships catering to New York cabbies simply have no cars to sell.

"You could walk in with a check for $100,000, and I would have to tell you hopefully within the next month I might supply you with a car," said Lee Komitor of Manhattan Taxi Center.

Best Ford Taxi in The Bronx had no taxi-suitable cars last week. City World Auto Group, also in The Bronx, had some Chevy Malibu hybrids but nothing else.

Panagiotis Papadopoulis of Checker Management in Long Island City hasn't been able to replace any of his fleet's 165 yellow taxis.

"I called a few dealers, and they say they are going to have cars in the middle or end of November, maybe," he said.

About 2,000 to 2,500 yellow taxis in the city's fleet of 13,000 are replaced every year.

It's not clear when the shortage will ease. Ford says that after its routine summer factory slowdown, it's ramping up production of the Escape hybrids and expects to ship 200 to New York in the coming weeks.

Under the green taxi push, the city has relaxed some of its standards on passenger comfort, effectively opening the market to more manufacturers.
How is the City going to make up the difference? They're relaxing passenger comfort standards to bring more hybrid vehicles into the mix. I'm sure that you'll appreciate the cramped conditions when trying to get around town or go to the airport from Midtown with your luggage.

This all comes at a time when Mayor Bloomberg is positing that he must be allowed to run for a third term since he knows best how to deal with financial difficulties and the Wall Street slowdown. He's been pushing the City Council to pass a law enabling current city council members and the mayor to run for a third term despite a term limits referendum passed by voters. Bloomberg thinks he's above that law.

I'd suggest that this shows that Bloomberg isn't the financial wizard he's cracked up to be - and that he's proffered an unfunded mandate that screws consumers who rely on cabs to get around the city. It's just another in a long line of misguided nanny state tactics that do little to improve the quality of life, but which increase government intrusion into daily life.

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