Auto execs lobby against efficiency increase

Wednesday, June 06, 2007

From an Associated Press story by Ken Thomas:

WASHINGTON (AP) -- The heads of the domestic auto industry pressed congressional leaders Wednesday to revisit a plan to increase fuel efficiency standards that automakers say could hurt their industry.

Leaders of General Motors, Ford and the Chrysler Group discussed the impact of health care, trade and energy policies on their companies, and asked House and Senate leaders to consider an alternative to a proposed overhaul of Corporate Average Fuel Economy standards for vehicles.

"They laid out the numbers and the numbers that were in the Commerce bill, they said, would destroy the domestic auto industry," said Sen. John Ensign, R-Nev., who participated in a morning meeting with GOP leaders.

During a luncheon with Senate Democrats, General Motors Corp. chairman and chief executive Rick Wagoner said it was time to move beyond approaches like CAFE "that clearly haven't solved these critical problems." He suggested more attention on developing biofuels such as ethanol and research on advanced batteries for hybrids and electric vehicles.

Wagoner acknowledged Tuesday in Delaware that "it's very likely there will be increases in CAFE" but said the Detroit-based automaker hoped to "make sure that we also fix the real problems while we're doing that."

Next week, the Senate is expected to consider a proposal to raise CAFE standards to a fleet average of 35 miles per gallon for a manufacturer's cars and trucks by 2020, an increase of about 10 mpg over current levels. From 2020-2030, the auto industry would face 4 percent annual increases.