This is pathetic.........they've upped the required fuel efficiency mileage to 35 from 27.5 but it does not have to be put into effect until 2020. This is the best the American auto industry can do? They must think we are very stupid.
Lawmakers Agree on Higher Fuel Standards
By TSC Staff
12/1/2007 11:17 AM EST
U.S. lawmakers have struck a deal on legislation that would raise fuel efficiency standards to an average of 35 miles per gallon for cars and light trucks by 2020.
Detroit's Big Three automakers had long resisted increases in Corporate Average Fuel Economy, or CAFE, standards, arguing that they would create a crushing financial burden. The current standard for cars, which hasn't changed since 1984, is 27.5 mpg. For the light-trucks category, which includes sport utility vehicles and minivans, it's 22.2 mpg.
The deal is part of a larger energy bill that likely will move through the House next week. If it passes, it will change the rules of the game for Ford (F - Cramer's Take - Stockpickr - Rating), GM (GM - Cramer's Take - Stockpickr - Rating) and Chrysler.
The deal was reached late Friday and came after several days of tense negotiations between members of the House and Senate.
During the summer, the Senate had approved a measure requiring the 35-mpg standard. The New York Times noted that automakers had relaxed their long-held resistance to increased CAFE standards shortly before the Senate passed its measure, but they had proposed a much weaker increase than the 35-mpg fleetwide average.
Friday's deal was hammered out by House Speaker Nancy Pelosi (D., Calif.) and Rep. John Dingell (D., Mich.), who has been a vocal supporter of the auto industry. Pelosi and other congressional leaders said they were confident the energy bill could win passage by the end of this year, according to The New York Times.
Shares of Ford closed Friday up 22 cents at $7.51. GM stock ended the session up $1.05 at $29.83. |
