Automakers Challenge California Law

NEW YORK, Dec. 7, 2004: THE ALLIANCE OF AUTOMOBILE MANUFACTURERS TODAY ANNOUNCED THAT IT HAS JOINED A GROUP OF AUTOMOBILE DEALERS IN CALIFORNIA'S CENTRAL VALLEY TO CHALLENGE REGULATION OF MOTOR VEHICLE FUEL ECONOMY UNDER CALIFORNIA'S GREENHOUSE GAS LAW. ALLIANCE VICE PRESIDENT GLORIA BERGQUIST:

"The Alliance is taking this action on behalf of California consumers. Federal law is designed to ensure a consistent fuel economy program across the country. There's a better way to improve fuel economy than this regulation, such as providing consumer tax incentives for the purchase of our new advanced technology vehicles."

UNDER THIS REGULATION, CALIFORNIANS PURCHASING A NEW VEHICLE WOULD PAY SIGNIFICANTLY MORE THAN CONSUMERS IN OTHER STATES -- AN AVERAGE OF $3,000 MORE FOR A NEW AUTOMOBILE AND WOULD LIKELY NEVER RECOUP THOSE EXTRA DOLLARS THROUGH SAVINGS AT THE GAS PUMP.

"This regulation is inconsistent with federal law, as well as fundamental principles for sound regulation of motor vehicles. It leaves us with no alternative but to join dealers in a legal challenge on behalf of automakers, dealers and consumers."