e360 digest

02 Nov 2011: U.S. Car Dealers Fight
Ambitious Auto Mileage Standards

One of the Obama administration’s signature environmental proposals — requiring tough new fuel efficiency standards for cars — is under attack from a powerful lobby of car dealers. President Obama had forged an agreement with major U.S. automakers requiring that automobiles would get an average of 54 miles-per-gallon by 2025, nearly double the current efficiency standards. After taking billions in government bailout money, carmakers like General Motors and Chrysler were under intense pressure to agree to the new standards, which are currently being formulated. Now, however, thousands of U.S. automobile dealers are supporting Republican legislation that would upend that agreement and soften the fuel efficiency standards. The bill, introduced into the Republican-controlled House of Representatives, would block the U.S. Environmental Protection Agency from being involved in fuel efficiency decisions, leaving the matter up to the Department of Transportation, which has traditionally supported a more gradual jump in efficiency standards. The car dealers say the agreement between Obama and the automakers bullies consumers and dealers into accepting overly strict mileage standards that will significantly increase the costs of cars.

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