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For Immediate Release
March 16, 2000
Contact: Gloria Bergquist
(202) 326-5596

ALLIANCE URGES EPA TO STAND FIRM ON
SULFUR REDUCTION IN DIESEL FUEL

Washington, D.C. - The Alliance of Automobile Manufacturers is urging the U.S. Environmental Protection Agency (EPA) to proceed with its proposed rulemaking that will reduce sulfur in diesel fuel.

The agency is scheduled to publish the rulemaking this spring, but the oil industry is asking EPA to withdraw and reconsider its upcoming rule. "It would be unfortunate if the oil industry tries to take advantage of the current temporary increase in oil prices to delay a regulation that will reduce vehicle emissions and give consumers cleaner air," said Josephine S. Cooper, president of the Alliance. "Reducing sulfur in diesel fuel, as in gasoline, reduces vehicle emissions. Without low sulfur diesel fuel, automakers will not be able to bring to market new, low-emitting diesel engines that deliver increased fuel economy," said Cooper.

The oil industry cites the recent escalation in oil prices as a key reason to delay the rulemaking. However, the cost of desulfurizing gasoline and diesel fuel is minimal compared to the normal-and abnormal-variations in fuel prices that have been caused by oil-producing nations manipulating production levels. Low sulfur diesel fuel is available in several European countries and other countries are scheduled to adopt similar standards in the next few years.

Additionally, some groups want to restrict diesel fuel use because of health concerns. Recent studies, however, indicate that the correct combination of vehicle technology and low sulfur diesel fuel can reduce emissions from diesel-powered vehicles to levels as clean as those produced by compressed natural gas vehicles. Any potential health concerns from diesel particulate matter could be dramatically reduced with clean diesel fuel because they enable the adoption of advanced after-treatment technology.

The Alliance of Automobile Manufacturers is a coalition of 13 car and light truck manufacturers, representing BMW Group, DaimlerChrysler Corporation, Fiat Auto S.p.A, Ford Motor Company, General Motors Corporation, Isuzu Motors America, Inc., Mazda North American Operations, Mitsubishi Motor Sales of American, Inc., Nissan North America, Inc., Porsche Cars North America, Inc., Toyota Motor North America, Inc., Volkswagen of America, Inc., and Volvo Cars of North America, Inc. It was formed in January 1999 and serves as a leading advocacy group for the automobile industry on public policy matters. Alliance member companies have approximately 600,000 employees in the United States, with more than 250 facilities in 35 states. Alliance members represent more than 90 percent of U.S. vehicle sales.

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