Auto Industry Gets New Fuel Economy Rules

Cthippo · 29 Mar 2006

Associated Press said:

WASHINGTON - The government is telling automakers to start churning out pickup trucks, sport utility vehicles and vans that go farther on a gallon of gas than today's models.

New fuel economy rules, covering 2008 through 2011, are being issued to the auto industry amid growing public concern about U.S. dependence on foreign sources of oil and rising pump prices.

The new rules represent the most significant changes to the Corporate Average Fuel Economy system in three decades and will affect automakers' product lineup. They follow
President Bush's declaration that the U.S. is "addicted to oil." Bush has called for a 75 percent reduction in Mideast oil imports by 2025.

The new rules do not apply to passenger cars, which must meet a 27.5 mile per gallon average.

Transportation Secretary
Norman Mineta was announcing the rule changes Wednesday.

Under the CAFE system, automakers now must meet an average of 21.6 mpg for their 2006 model year light trucks. That average will rise to 22.2 mpg for 2007 vehicles.

Changes first proposed last summer would lead to a projected fleetwide average of 24 mpg by 2011, though the final rules could require higher standards.

Automakers probably would need to meet fuel economy targets based on their mix of vehicles.

Environmental groups have pressed for the higher standards and urged that the rules start applying to large trucks and sport utility vehicles such as the Hummer H2 and Chevrolet Suburban.

"The fact that fuel prices have increased and more importantly, fuel price forecasts have increased since the proposal was developed suggests a stronger standard is warranted," said Eric Haxthausen, an economist with Environmental Defense.

Environmentalists want the Bush administration to improve upon last summer's proposal's projected savings of 10 billion gallons of oil over the lifetime of the vehicles sold from 2008-11.

The administration said it would save more fuel than any previous rulemaking in the history of the light truck program, but the groups said it only amounted to a few weeks worth of oil consumption.

"The president is the one who said we're addicted to oil. This is his most important tool to curb that addiction," said Dan Becker, who directs the
Sierra Club's global warming and energy program.

The proposal from last summer also would phase out a single standard for light trucks and create different mileage goals for six categories of vehicles. Industry groups said the new plan may call for more specific fuel economy standards based on a vehicle's dimensions.

Automakers have noted that the final plan will likely mean seven straight years of higher fuel economy requirements for light trucks. The industry has fought previous attempts to raise the standards but has expressed support for the proposal's direction.

U.S. automakers such as General Motors Corp. and Ford Motor Co. have said the current system hurts them against the competition because sales of large SUVs must be offset by the sale of smaller light trucks to comply with fuel economy rules.
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About bloody time!

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Auto Industry Gets New Fuel Economy Rules

Cthippo Can't mod my way out of a paper bag

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Auto Industry Gets New Fuel Economy Rules

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