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CAFE Battle Brewing

16 May 2000

SEMA Opposes Efforts to Unfreeze CAFE Standards

    WASHINGTON - The Specialty Equipment Market Association (SEMA) has joined 
the major automotive manufacturers in opposing efforts to end the freeze on 
Corporate Average Fuel Economy (CAFE).

    An end to the freeze will result in higher fuel economy standards required
for light trucks, SUVs and minivans, forcing the vehicle manufacturers to
limit consumer choice for these vehicles.  SEMA President Charles Blum
commented, "Sales trends in recent years clearly indicate that consumers
desire the safety, utility and comfort associated with the SUV/light-truck
market.  If higher CAFE standards render these vehicles less useful or
desirable, both vehicle manufacturers and SEMA member companies will suffer a
correspondingly disastrous result, jeopardizing the livelihood of thousands of
employees nationwide."

    Since 1995, each Department of Transportation Appropriations bill has
included language preventing the U.S. Department of Transportation from
increasing CAFE goals.  CAFE standards are "frozen" at 20.7 mpg for light
trucks/SUVs and 27.5 mpg for passenger vehicles.  However, recently a sizable
coalition in the House of Representatives has developed a renewed interest in
raising CAFE standards.

    SEMA is embarking on an aggressive lobbying campaign by both member
companies and the SEMA Action Network (SAN).  SEMA is confident that their
lobbying efforts will convince legislators that increased CAFE standards will
burden more than carmakers.  They will also limit consumer vehicle choice,
represent an unfair government intrusion into the marketplace, and threaten
many specialty aftermarket auto parts companies' ability to remain in
business.

    SEMA is a trade group composed of nearly 4,200 member companies that make
up the specialty automotive equipment industry, a $21.2 billion a year
industry.  The SEMA Action Network (SAN) is a nationwide partnership between
SEMA, vehicle clubs, enthusiastic individuals and related publications that
works to protect automotive hobbies.  SAN can reach nearly 7 million people
dedicated to help stamp out legislative threats to the automobile hobbies and
pass favorable laws.