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Copyright 2000 The San Diego Union-Tribune  
The San Diego Union-Tribune

September 16, 2000, Saturday

SECTION: AUTO;Pg. WHEELS-6

LENGTH: 521 words

HEADLINE: Automakers' offer to raise fuel efficiency stirs standards debate

BYLINE: Harry Stoffer; AUTOMOTIVE NEWS

BODY:
WASHINGTON -- Year after year, industry critics said automakers could build more fuel-efficient trucks. Automakers said they could not without making their trucks less appealing, less safe and less useful.

And lawmakers listened. Since 1995, they have frozen the federal corporate average fuel economy, or CAFE, standards.

But recently, Ford and General Motors have volunteered to cut fuel consumption in some sport utilities and pickups.

Proponents of higher fuel-economy standards say the automakers' statements give them fresh ammunition to press for higher CAFE.

"This means a fundamental change in the terms of the CAFE debate," says Jason Mark, transportation analyst for the Union of Concerned Scientists, a group that lobbies for higher standards.

He says the announcements show that manufacturers know how to build more economical vehicles and that consumers care about fuel efficiency, disproving two key arguments used by opponents of CAFE in Congress.

Those points have not been missed on Capitol Hill.

Sen. Slade Gorton, R-Wash., a top Senate proponent of higher CAFE standards, says: "I've long said the industry has the existing technology to allow cars to go further on a gallon of gas and save consumers money at the gas pump."

Even before the Ford and GM announcements, Gorton and other opponents of the freeze appeared to be gaining ground.

In 1999 they got 40 votes in the Senate to end the freeze, which keeps the standards at 27.5 mpg for cars and 20.7 for trucks.

They were preparing for another Senate vote this year when they and the industry's allies agreed instead to seek a National Academy of Sciences study of CAFE.

Congress is considering the measure to keep the freeze for an additional year while the study is conducted. Lobbyists on both sides of the issue do not expect the bill to be derailed by the GM and Ford announcements, but they are less certain than before.

Jo Cooper, president of the Alliance of Automobile Manufacturers, says member companies are concerned about timing. They would have preferred to have the CAFE freeze enacted for another year before facing fresh questions about the voluntary steps planned by some.

Nevertheless, she says the alliance -- Ford, GM and 11 of their competitors -- is ready to make the case that innovation and competition, not regulation, are the ways to produce more efficient vehicles.

Even a competitor came to Ford's defense in the wake of its promise to raise the fuel economy of its sport-utility fleet by 25 percent in the next five years.

Robert Liberatore, DaimlerChrysler senior vice president for external affairs and public policy, says: "I can't see how people wouldn't see that as a constructive gesture and why it would invite more regulations. It shouldn't."

But, he adds: "Washington works in strange ways. Anything's possible."

Ford officials were sensitive to the fact that their promise to cut average sport utility fuel consumption would stir the CAFE debate.

They briefed lawmakers who have been industry supporters about the plan before it was unveiled by Ford CEO Jac Nasser on July 27.



LOAD-DATE: September 18, 2000




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