The plan by Sens. John Kerry, D-Mass., and Ernest "Fritz" Hollings, D-S.C., included in the Senate Democratic energy plan, would require cars and light trucks to average 35 mpg by 2013. The current average required is 27.5 mpg for cars and 20.7 mpg for pickups, minivans and sport utility vehicles.
Rob Liberatore, DaimlerChrysler's vice president for external affairs and public policy, said he does not expect the Senate to pass such a "radical and unrealistic" standard. He said the industry is preparing for a more modest increase developed by the National Highway Traffic Safety Administration.
"We expect NHTSA to raise the standard, but we don't expect them to pick a number out of the air like John Kerry and Fritz Hollings have done," Liberatore said at an industry meeting with reporters. "There is no basis for that number. It's just high."
Despite expressing confidence that the plan is too extreme to become law, industry leaders are aggressively lobbying against its passage.
"It's always prudent to be careful with a big issue that can wreck an industry," said Jim Olson, senior vice president of external and regulatory affairs for Toyota Motor North America.
Automakers argue that higher fuel economy standards force them to build smaller cars that go further on a gallon of gas. But Kerry said automakers can build cars and trucks that help break the United States' dependence on foreign oil.
"The scientific studies show we're right, and we're going to use the truth to combat the industry's lobbying clout," Kerry said in a statement. "The industry needs to stop scaring workers and instead join an important mission for the security of our country."
The executives at the meeting - also representing Ford, General Motors and Volkswagen - would not discuss what type of fuel economy increase would be appropriate. They said that would be different for each company, depending on their products, and each would be willing to discuss their goals privately with NHTSA.
NHTSA is studying an increase for the 2005 through 2010 model years, but spokesman Tim Hurd said the agency has not decided whether the standards should be raised.
Liberatore said Congress could reduce oil consumption by raising the price of gasoline instead of requiring automakers to change the way they make vehicles.
"If we are using too much gasoline, the solution would be to change the price of gasoline, but they are too afraid to do that," he said.
http://accesswdun.com/article/2002/2/198487