U.S. Carmakers Ready to Back Gov. Fuel Rules

Washington DC June 5, 2007; The AIADA newsletter reported that the U.S. auto industry appears ready to argue for higher fuel economy standards to block tougher proposals that several automakers worry could cripple their finances.

The latest sign came in the posting of a draft bill from the House Energy and Commerce Committee, chaired by U.S. Rep. John Dingell (D-MI) the industry's top champion on Capitol Hill.

The draft proposes the industry meet mileage standards of at least 36 mpg for cars after 2021 and 30 mpg for trucks after 2024. Those mileage figures match a proposal by U.S. Sen. Carl Levin (D-MI).

The Detroit Free Press reports that the leaders of the Big Three are scheduled to visit Capitol Hill tomorrow, where they plan to lobby lawmakers on several issues. International automakers have been more positive in general about fuel economy rules, but all have opposed the Senate Democrats' original proposal as unobtainable.

In addition to the 35 mpg target, the original bill required increases of four percent per year after 2020; the industry's most recent gains have been roughly two percent a year.