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Automakers Support House Fuel Economy Legislation

14 April 2000

Automakers Support House Fuel Economy Legislation

    WASHINGTON, April 13 The following is a statement by
Josephine S. Cooper, President, Alliance of Automobile Manufacturers, in
response to fuel economy legislation introduced today in Congress:

    "Today, the 'Advanced Technology Motor Vehicle Fuel Economy Act of 2000-
H.R. 4270' was introduced by Reps. Kildee, Upton, Dingell, Knollenberg, Towns
and Levin.  Members of the Alliance of Automobile Manufacturers strongly
support this bill.  This legislation would foster technology advancements and
fleet fuel economy increases through consumer tax incentives and the flexible
fuel vehicle credit, and it would provide greater clarity to our public policy
priorities through a comprehensive study of fuel economy measures.
    "Federal tax credits applied to the purchase of advanced vehicles such as
qualifying electric and hybrid-electric vehicles put us on the right track for
fuel economy advancements.  Today, there is fierce competition among
automakers to be first to market with even cleaner, more fuel-efficient cars
and light trucks.  Vehicles with advanced fuel-efficient technologies are on
sale now from automakers, and more advanced technologies are on the horizon.
To get these advanced automobiles on the road, it is critical that this
technology be attractive and affordable to consumers.  Federal tax credits are
a great incentive for consumers to buy advanced technology vehicles.
    "The flexible fuel vehicle credit is one incentive that has worked.
Automakers already offer more than 25 vehicles powered by alternative fuels,
including natural gas, ethanol and liquefied petroleum gas.  More than one
million of these alternative fuel vehicles are on the road today.  We have
only been limited by the availability of the fuels.  Congress needs to extend
the flexible fuel credit, because it has been successful in advancing fuel
diversity in vehicles.  At the same time, the U.S. needs to work on developing
the infrastructure to make these fuels more widely available.
    "For those who have called for a study of Corporate Average Fuel Economy
(CAFE) standards in the past, we ask them to join us in supporting this
legislation.  Since CAFE was enacted in 1975, many policies designed to
increase energy conservation have come and gone, with some more successful
than others.  Meanwhile, our energy and economic situation has changed, along
with American lifestyles.  It's time to take a fresh look at current and
future energy conservation without limiting our study to CAFE alone."

    The Alliance of Automobile Manufacturers is a coalition of 13 car and
light truck manufacturers.  Alliance member companies have approximately
600,000 employees in the United States, with more than 250 facilities in 35
states.  Alliance members represent more than 90 percent of U.S. vehicle
sales.  For more information, visit the Alliance website at
http://www.autoalliance.org.