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Support Building for Obama Mileage Compromise

Industry, labor, political and environmental leaders lending support in advance of White House announcement.

by on Jul.28, 2011

The typical passenger car would have to deliver 56.2 mpg by 2025, but trucks would get slightly less.

While details are being withheld until tomorrow’s formal White House announcement, there’s a growing consensus building for the apparent compromise on the nation’s future fuel economy standard – one potentially major opponent signaling it is ready to sign on.

Reports that Toyota would oppose the proposed increase in the U.S. Corporate Average Fuel Economy, or CAFE, standard “are not accurate,” Group Vice President Bob Carter tells “Toyota is not going to fight the administration’s proposal.”

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Separately, a well-placed company official said it would be a self-destructive move for “the Prius company,” to try to scuttle the compromise that is expected to call for passenger cars to meet a 56.2 mile per gallon mandate by 2025.  To bring the industry onboard, President Obama apparently accepted a reduced 54.5 mpg target for pickups and other light trucks.


Obama, Automakers Agree on New Mileage Rules

Announcement expected at White House on Friday.

by on Jul.28, 2011

President Obama is expected to announce a compromise on fuel economy standards during a Friday White House news conference.

The contentious debate over the nation’s future fuel economy standards has ended, industry leaders and government regulators reportedly coming up with a compromise that President Obama is expected to announce at the White House on Friday.

The changes, according to inside sources, will provide the industry a bit of breathing room on the light truck side – though not by much.  The compromise is expected to call for the industry to meet a target of 56.2 miles per gallon with passenger cars and 54.5 mpg for light trucks by 2025.  Currently, automakers are aiming for 35.5 mpg in 2016.

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The new rules are expected to call for a two-stage phase-in, with mileage for passenger cars rising 5% annually while light trucks would see fuel economy climb 3.5% a year from 2017 to 2021, then by 5% through 2025.

Administration spokesman Jay Carney confirmed that the changes to the Corporate Average Fuel Economy, or CAFE, standard is expected to save jobs and improve market demand while also reducing oil consumption and pollution.