---

Big Three Face Fines on Fuel Economy

30 July 1999

Big Three Face Fines on Fuel Economy

    NEW YORK--July 29, 1999--The Big Three swerved around CAFE standards -- for corporate average fuel economy -- that have been the law since 1975.
    With sales of gas-guzzling sport-utility vehicles and pickups soaring, the U.S. auto makers have met current years' targets -- on paper -- by borrowing credits from future years. Auto makers also earn big credits for each "alternative fuel" vehicle they make, even if they don't reduce gas consumption. And if an auto maker's fleet won't meet fuel economy minimums for a specific year, a gas-guzzler can have its model year shortened; fuel-sippers may have model years extended. But now, the Big Three appear to be running out of tricks for meeting the standards. When the 1998 model year is tallied next spring, Business Week reports, they could face fines of $150 million or more.