Automakers Impact Fuel Economy Bill

Washington DC May 4, 2007; The AIADA newsletter reported that Sen. Daniel Inouye (D-HI), head of the Senate committee overseeing fuel economy regulations, said he would unveil a compromise proposal today after Michigan's two senators launched a spirited offensive against legislation calling for higher fuel efficiency standards.

According to the Detroit Free Press, the new bill will address concerns raised by Michigan Democratic Sens. Carl Levin and Debbie Stabenow that the wrong bill could threaten jobs and the existence of at least one Detroit automaker.

Industry officials expect Inouye's bill to have a goal similar to President Bush's proposal for a 4% annual increase in fuel economy. The key for the industry will be how much leeway federal regulators have to set lower requirements if they find automakers incapable of meeting the standard.

Sen. Tom Carper (D-DE) said that during his years in Congress, Detroit automakers have consistently argued that tougher fuel efficiency standards would hurt their businesses, even as they've shed jobs and closed plants due to market share gains by foreign automakers. "There's an irony there, and one that's not lost on us," Carper said."