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WASHINGTON—Automakers ranging from Ford Motor Co. to
Toyota Motors Corp. called a Senate bill to boost
average mileage standards 40 percent by 2020 too harsh
and pledged to push for changes.
“This
vote is the first step in the legislative process, and
major changes are still needed to make this bill
achievable,’’ Ford’s Bruce Andrews, vice president for
government relations at the No. 2 US automaker, said in
a statement.
The
Senate vote late last week is the first to raise
auto-efficiency rules in 16 years.
Most
automakers said the combined mileage standard is too
strict because of the costs needed to improve the
fuel-efficiency of light trucks, which is typically
lower than that of cars.
The
Senate bill would erase a three-decade distinction
between vehicle types and require all autos to average
35 miles per gallon (mpg) of fuel. General Motors Corp.
vice chairman Bob Lutz and Chrysler’s CEO Tom LaSorda
have said meeting the 35 mpg goal will cost their
companies more than $6,000 per vehicle.
Having
failed to prevail in the Senate, automakers are looking
to Rep. John Dingell, a Michigan Democrat, to help them
win against environmental groups and achieve a lower
mileage target. Dingell heads the House Energy and
Commerce Committee, which is scheduled to consider a
broad energy and alternative-fuel package before July 4.
Dan
Becker, director of the global warming program at the
Sierra Club in Washington, predicted lawmakers will
stand up to Dingell, whose
Michigan
district includes Ford’s Dearborn base.
“I think
the automakers have lost credibility,’’ he said. Becker
and other environmental advocates support the Senate
measure.
Even
Japan’s Honda Motor Co. and Toyota Motors Corp., makers
of the most fuel-efficient car fleets in the US, called
the Senate goal ambitious. The standard is now 27.5 mpg
for cars and 21.6 mpg for light trucks.
The
“35-mpg standard is very aggressive,’’ Edward Cohen,
vice president for government relations at Honda North
America in Washington, said in an interview. “It’s not a
business-as-usual standard.’’
In an
e-mailed statement, Josephine Cooper, Toyota’s head of
government affairs, also called the target “very
aggressive.’’
The
Senate bill requires the National Highway Traffic Safety
Administration to set mileage standards based on vehicle
size, which means each automaker could have a different
goal and “Toyota’s target would likely be higher than 35
mpg and would be extremely challenging,’’ she said.
Automakers including Ford,
Toyota,
GM and DaimlerChrysler AG’s Chrysler Group want a
standard that would combine the mileage of cars and
light trucks.
Dave
McCurdy, president of the Alliance of Automobile
Manufacturers, said in a statement that the group would
work with lawmakers to “develop reasonable fuel economy
standards that are affordable.’’ The Washington trade
group represents nine automakers including GM, Ford and
Toyota.
Automakers “are going to have to spend heavily in terms
of fuel-efficient cars that meet consumer demands,’’
Dennis Virag, president of Automotive Consulting Group
in Ann Arbor, Michigan, said in an interview.
The bill
also would allow automakers to count vehicles fueled by
hydrogen, electricity and hybrid power toward a mandate
that 50 percent of all vehicles sold in the US by 2015
be powered by sources other than gasoline.
Detroit-area automakers Ford, GM and Chrysler want only
vehicles powered by an ethanol blend known as E85 to
count toward the alternative-fuel requirement.
Nissan
Motor Co., which campaigned to expand the definition of
alternative fuel, welcomed the change.
“We’re
pleased our voices were heard in regards to flex-fuel’’
vehicles, Jeannine Ginivan, spokesman for the
Tokyo-based company in Washington said, calling it
“technology neutral.’’
Before
the Senate bill becomes law, the House of
Representatives must pass matching legislation, and the
president must sign a measure agreed to by both
chambers.
Shares
of GM fell 50 cents to $35.46 at 4:20 p.m. in New York
Stock Exchange composite trading. Ford’s shares gained
22 cents to $9.13. American depositary receipts of
Toyota fell $1.97 to $123.02, Honda’s dropped 39 cents
to $35.22, and Nissan’s were down 45 cents to $21.21.
--Bloomberg |
