US panel to give automakers time on fuel economy
Date: 30-Jul-01
Country: USA
Author: Justin Hyde
The report from a panel at the National Academy of Sciences is still expected to offer a range of possible increases for fuel economy standards, but avoid making a specific recommendation, the source said.
While the report is not expected to recommend increases as high as environmental groups are pushing for, it will likely increase pressure on automakers who have been opposing any increase on federal standards so far.
"I think the NAS study is clearly signaling that (fuel economy standards) increases are feasible and economically viable," said Jason Mark with the Union of Concerned Scientists, an environmental group.
Many studies of fuel economy have looked at increases possible in 10 years or more, giving automakers enough lead time to design and build more efficient engines and vehicles. The panel's report is now expected to offer a similar time frame.
The changes were made after the 13-member panel received comments on a draft copy of the report from outside reviewers. A leak of that draft caused some concern in the industry, and spurred General Motors Corp. to contact some members. But GM spokesman Bill Noack said the automaker only talked to the panel about the timing of the report's release, not its contents.
The debate over fuel economy has heated up this summer as environmental groups saw an opportunity to raise federal standards for the first time in years. Republican leaders who have traditionally helped automakers oppose such moves have also been more receptive to increases beyond the current 27.5 miles per gallon average for cars and 20.7 mpg for trucks.
Despite the standards, American demand for gasoline has grown 30 percent since the 1970s, driven by increases in both the number of vehicles and the number of miles driven by each.
The country now burns about 323 million gallons of gasoline a day for passenger vehicles. That could grow to 420 million gallons over the next decade if fuel economy does not improve.
While the standards have been frozen for several years, the average fuel economy of all new vehicles peaked in the late 1980s and has since declined as consumers bought more pickup trucks and sport utility vehicles. The average for all new vehicles last year was 24.7 mpg. Environmental groups say 40 mpg for passenger cars and trucks in a decade is possible.
As part of his energy plan, President George W. Bush has said his administration will use the panel's report as a starting point for considering higher standards. But the U.S. Congress has already begun debating whether to raise the standards, and a House of Representatives committee has approved a bill calling for a slight increase.
DIFFERENT VOICES
The panel still appears likely to warn of safety concerns for lighter vehicles, and is expected to discuss the benefits of diesel engines, which are more efficient but don't meet future clean air standards.
Detroit's Big Three, led by GM, have been staunchly against any increase in federal fuel economy standards, saying it would imperial passenger safety and hurt the economy.
GM has released a study saying any efforts to cut vehicle weight to meet higher fuel economy standards would increase the fatality risk in accidents. GM also said that a 3 mpg increase in truck standards today would force GM to cut production by 1 million vehicles, slash jobs and close factories.
But the industry isn't united on the topic. On the other end is Honda Motor Co. Ltd. , which says higher standards are fine, but would prefer the actual numbers be set by government experts rather than Congress.
"We're not opposing an increase, and if a determination is made by policymakers that an increase is appropriate, we want to make sure they understand the ramifications," said Ed Cohen, Honda's vice president of government and industry relations.
Honda and a few other foreign automakers can handle an increase in fuel economy standards easier than their domestic competitors because they hav