Big Three Car Makers Back Compromise US Fuel Rules

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Washington DC June 13, 2007; The AIADA newsletter reported that in an unexpected moment of compromise, automakers decided yesterday to endorse a proposal to raise fuel efficiency requirements.

According to the Detroit News, the endorsement is a departure for the automakers, who have long opposed significant increases in corporate average fuel economy standards. Automakers believe the compromise proposal offered by Sen. Carl Levin (D-MI) is achievable, although it will still be expensive to meet and breaks with their long-held belief that regulators, not senators, should set new fuel requirements.

Following a late-afternoon meeting yesterday between automakers and Levin's staff, the nine companies in the Alliance of Automobile Manufacturers, the trade group that represents Detroit's three automakers and Toyota Motor Corp., decided to endorse Levin's bill, which could be released as early as Wednesday.

Officials from the Association of International Automobile Manufacturers, which represents Toyota, Nissan, and Honda also attended the meeting but are undecided whether to support Levin's plan.