Strict Mileage Rules Could Hurt Some Automakers

Washington DC February 11, 2007; The AIADA newsletter reported that Congress eager to flex its legislative muscles, is expected to introduce energy legislation stricter than President Bush's plan to cut emissions by 20 percent in ten years.

According to the Detroit Free Press, powerful support for energy reform may overwhelm any objections from Detroit automakers about how higher standards could raise their costs. Congressman Ed Markey (D-Mass.) is expected to introduce a fuel economy proposal similar to his 2006 plan to require vehicles to average 33 miles per gallon by 2016.

Mackey's proposal is similar to the President's, with one key difference. Bush's plan has a target of 34 mpg by 2017 backed by an estimated 4 percent annual increase, but would let the Department of Transportation set actual standards based on automakers' future plans, an essential point for the auto industry.

U.S. Auto industry executives face a tough fight, especially in the House. One insider there said a standard of 75 mpg could probably pass today so members could be on record as wanting a tough standard, knowing the real plan would be hammered out later.