The Obama administration will set out tougher fuel-economy rules for car manufacturers today in a move likely to please environmentalists but add to the industry's problems.
A new corporate average fuel-economy standard would require carmakers to improve the economy of their cars from 27.5 miles per gallon today to an average 42mpg by 2016, an industry insider said. An administration official said the changes would be part of a broader announcement on emissions. The standard was introduced in 1975 as a response to the oil embargo Arab producers imposed on the US.
Light trucks, a category that includes the more fuel-hungry sports-utility vehicles, will have their standard raised from 24mpg to 26.2mpg, said the insider.
The return of the issue to the political spotlight comes as President Barack Obama is attempting to push restrictions on carbon emissions through Congress as a means to fight global warming. It also follows his commitment during the presidential campaign to energy security.
But the move also comes as General Motors struggles to avoid joining Chrysler in bankruptcy. Both companies have accepted billions of dollars in US government aid. The three big Detroit carmakers, including Ford Motor, have suffered a sharp decline in sales.
Carmakers, including foreign manufacturers with US operations such as Toyota, have lobbied against proposals to impose better fuel economy. The industrysays such measures would cost tens of billions of dollars to implement, pushing up prices and leading to more job losses.
Safety could also be compromised, it has argued, if lighter materials were used to reduce vehicles' fuel consumption.
And according to this item, the new plans will cost consumers $1,300 per car. That is, if they're willing to buy new cars.
Get your SUVs while you still can.
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