| For Immediate Release July 30, 2001 |
Contact: Gloria Bergquist, (202)
326-5596 Eron Shosteck, (202) 326-5501 |
Statement by Josephine S. Cooper, President and CEO, Alliance of Automobile Manufacturers, regarding the release of the National Academy of Sciences (NAS) study on Corporate Average Fuel Economy (CAFE):
"The NAS panel should be complimented for its efforts to review the complexities of Corporate Average Fuel Economy (CAFE). The NAS report confirms the automobile industry's view of CAFE. As the panel noted, 'The CAFE program has been controversial since its inception,' and 'understanding the impact of potential changes to CAFE standards is, indeed, a difficult and complex task.' (page ES-2)
"The NAS report also acknowledges the many uncertainties of CAFE: 'Uncertainties include the cost of implementing existing technologies or developing new ones; the future price of gasoline; the nature of consumer preferences for vehicle types, performance, and other features; and potential safety consequences of altered standards. The higher the target for average fuel economy, the greater the uncertainty about the cost of reaching that target.' (ES-7)
"While there will be a tendency for some to pick the highest fuel economy number in the report as an indication of how high CAFE standards could be raised, we would point out the following statement in the NAS report: "The committee cannot emphasize strongly enough that the break-even fuel economy levels identified in Tables 4-2 and 4-3 are NOT recommended fuel economy goals.' (ES-6)
"The National Highway Traffic Safety Administration (NHTSA) has the responsibility to set CAFE standards at the 'maximum feasible' level considering all the elements such as technological feasibility, cost considerations, safety, emissions controls, consumer choice and the effects on the automotive industry.
CAFE and Safety:
"Based on the NAS report, there is no question that CAFE affects safety. The NAS report urges NHTSA to 'clarify the relationship between fuel economy and safety' through additional research. (ES-9). The report states:
'the downweighting and downsizing that occurred in the late 1970s and early 1980s, some of which was due to CAFE standards, probably resulted in an additional 1,300 to 2,600 traffic fatalities in 1993.' (ES-4) The report further states 'If an increase in fuel economy is effected by a system that encourages either downweighting or the production and sale of more small cars, some additional traffic fatalities would be expected.' (ES-8)
The Importance of Lead Time
"The NAS report also confirms that automakers need sufficient time to bring new fuel-efficient technologies to market. The report states that:
'Technology changes require very long lead times to be introduced into the manufacturers' product lines. Any policy that is implemented too aggressively (that is, in too short a period of time) has the potential to adversely affect manufacturers, their suppliers, their employees, and consumers.' (ES-8)
The Fuel Economy Promise of Lean Burn Technologies and Hybrids
"For a long time, we have said that CAFE increases can sharply limit consumer choice, taking away the utility and performance of popular vehicles like SUVs. Other federal regulations can reduce options to improve fuel economy. The NAS report confirms that:
'Advanced technologies – including direct-injection lean-burn gasoline engines, direct-injection compression-ignition (diesel) engines, and hybrid electric vehicles – have the potential to improve vehicle fuel economy by 20 to 40 percent or more, although at a significantly higher cost. However, lean-burn gasoline engines and diesel engines, the latter of which are already producing large fuel economy gains in Europe, face significant technical challenges to meet the Tier 2 emission standards established by the EPA…' (ES-8)
The Need for Consumer Tax Credits
"Automakers have said all along that new types of technology – such as hybrid gasoline-electric vehicles – show great promise, allowing manufacturers to both improve fuel economy and continue to offer the comfort, safety and utility the public demands. However, the NAS report notes that these vehicles 'face significant cost hurdles.' (ES-8) For this reason, the Alliance supports Congressional passage of consumer tax credits to accelerate the introduction of these vehicles.
The Importance of Consumer Choice
"All manufacturers are working hard to improve the fuel efficiency of their vehicles without compromising what customers want and, at the same time, doing so affordably. However, the NAS report, in discussing economic trade-offs associated with the introduction of existing and emerging technologies to improve fuel economy, states that:
'Given the choice, consumers might well spend the money on other vehicle amenities, such as greater acceleration or towing capacity, rather than on the fuel economy break-even technology packages.' (ES-6)"
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