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Fuel Economy is Automakers Great Concern

Fuel Economy Negotiations

One of the key problems discussed on the congressional negotiations was a fuel economy standards increase which in 2020 should reach 35 miles per gallon.

The difference between cars and trucks will be preserved as the result of compromise. The Congress again confirmed the decision to support in the USA small cars production. These decisions are the part of a large fuel economy bill which is coming to a vote in a week.

Yet several questions remain unsolved and the congressmen are still at negotiations.

Detroit automakers are very satisfied about the compromise as it can save them from endless legal and public claims for making fuel economy standards even stricter. George Bush demanded from federal agencies to work out their plans and drafts of fuel economy for cars for 2012. The drafts are to be prepared by the end of the current year. Some automakers still consider the 35 m\p.g. standard unavailable and that’s why most of them think that they just need more time beyond 2020 to fit their cars to new standards.

Will SUVs Become a Loophole?

Most of the largest automaking companies such as Ford Motor Co., Toyota Motor Corp., General Motors Corp. and Chrysler LLC have supported the idea of 35 m\p.g. standard with preserving the difference between cars and trucks but they also admit that it is necessary much more time to reach this goal.

However many environmental organizations have their arguments against this distinction. They think that the difference between cars and trucks is a great loophole for SUV makers as it allows them to sell fuel-guzzling cars under norms originally worked out for trucks.

According to the last data the distinction between cars and trucks will be preserved. Despite of this the deal on the table will require the industry to achieve 35 m\p.g. standard by 2020 without any exceptions but only with limits defined by the federal regulation.

All participants admit that it is a sound decision that federal regulators should work out fuel economy standard for every vehicle type. Those who back the higher standards think that one and the same standard must be applied to all types of cars. However automakers are sure that truckes should be judged by different norms and that’s why a separate system of standards must be designed.

Many congressmen think that any fuel economy standard increase should be followed by some aid and support for American automakes as their attempts of meeting standards will cause high costs. Still it is not clear what aid is meant. Some congressmen offer that those automakers who rebuild their plants for hybrid or other advanced cars production should be provided with tax credits.

Automakers Need More Time

Representatives of such large companies as GM, Ford, Chrysler and Toyota said that the automakers need enough time to design and produce more efficient concepts. Spokesman Charles Territo said that they are sure the law will be adopted and signed by the president. At the same time it is necessary to pat attention to other parts of general energy bill, for instance, to tax proposals and working out new electricity sources.

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