U.S. Panel Says Detroit Fails to Make Shift to Fuel-Efficient Cars

U.S. automakers’ reliance on trucks, SUVs and larger passenger cars stands in contrast with consumer trends and the government’s mandate for more fuel-efficient vehicles, an automotive task force created by the Obama administration concluded in a report. While General Motors has touted the hybrid electric Chevy Volt as a fuel-efficient alternative, the car is “likely be too expensive to be commercially successful in the short term,” the report by the Auto Task Force concluded, and GM is “at least one generation behind Toyota on advanced, ‘green’ powertrain development.” Chrysler, meanwhile, does not have the small car models that will make the automaker a viable player as consumers increasingly seek smaller, more fuel-efficient cars, the task force found. The task force report was released as Obama issued an ultimatum to U.S. automakers on what they must do to continue receiving government support. Obama gave GM 60 days to develop a strategy to remain viable, and allowed Chrysler one month to complete a merger with Italy’s Fiat SpA.