When you have a captive market, free enterprise means you can just keep producing the same inefficient, smoke-belching junk that you have been right along, and people will buy it, because they have no other choice.
There's little incentive to innovate. Why, if you're selling all the cars you can make? Innovating just costs money, and nobody else is doing it, so when your more efficient, cleaner, and MORE EXPENSIVE car comes out on the market, the people will just flock to the competition's cheaper alternative.
Think back to when emissions equipment first appeared on cars. People were complaining about it and ripping it out from day one. Nobody wanted it, nobody wanted to pay for it, but it did eventually clean up the air in the big cities.
I agree that the EPA has gone too far at this point, but without their initial push I doubt we'd have what we have now.
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