Import automakers accept 35 mpg CAFE

Harry Stoffer
Automotive News
November 1, 2007 - 11:28 am ET

WASHINGTON -- An important bloc of import-brand automakers is telling
Congress that the companies can accept a fuel economy standard of 35 mpg.

But the automakers continue to ask for more time to meet the higher standard
than congressional Democratic leaders envision. The group includes Toyota,
Honda, Nissan, Hyundai and 10 other import-brand automakers.

Mike Stanton, president of the Association of International Automobile
Manufacturers, told reporters today that the 35 mpg figure has become "a
pretty sacred number" on Capitol Hill.

So his members reason there is no point in fighting it, Stanton said. "Why
beat your head up against the wall?" he said.

They are asking lawmakers negotiating new energy legislation to give them
several years beyond the current 2020 target to meet that standard, Stanton
added. New cars and trucks now average about 25 mpg.

The association's concession is the latest in a series by automakers and
industry groups. It adds to the likelihood that Congress will pass a tough
fuel economy measure this year.

The Alliance of Automobile Manufacturers, which represents the Detroit 3,
Toyota and five other automakers, favors a milder fuel economy alternative.
The legislation they prefer calls for separate car and truck standards that,
averaged together, would be at least 32 mpg but not more than 35 mpg by
2022.

The import-brand association remains divided over whether car and truck
standards should be merged into a single regulatory program.

The association wants to ease a proposed mandate that would require many
more vehicles to run on mostly ethanol fuel. It also wants to end a
long-standing rule that each automaker ensure its imported and U.S.-made
cars comply separately with the fuel economy standard for cars.

Democratic leaders in Congress are believed to be making a behind-the-scenes
push to pass energy legislation this year that includes a tough fuel economy
standard.