Energy Issues

CAFE

The UAW has supported the Corporate Average Fuel Economy program from its start in 1975, and we continue to do so today. Achieving better fuel efficiency and energy conservation for the U.S. motor vehicle fleet is not only possible, it needs to be part of our nation’s efforts toward greater energy security, environmental improvement and a lessened dependence on imported oil. Our union rejects proposals to entirely eliminate or dismantle the existing mandatory national fuel economy standards for cars and light trucks. At the same time, we cannot accept demands for excessive increases in CAFE standards that would jeopardize the jobs of UAW members.

Instead, the federal government should take a balanced approach to establishing fuel economy standards. Such an approach would save on our nation’s consumption of gasoline through federal policies that include improved light vehicle fuel economy, without jeopardizing the solid, family-supporting jobs of American autoworkers. While improvements in light vehicle fuel economy are doable, we have concerns about possible impacts of changes in the CAFE program on the jobs of our members. The domestic automotive industry has slowed significantly this year, resulting in numerous layoffs. A continuing negative impact on sales and production is expected from the weakening U.S. economy. Given these conditions, it is important that any changes to CAFE not aggravate the challenging economic circumstances facing automakers and their suppliers and result in additional job losses for American workers.

With sufficient lead times that fully recognize the nature of new vehicle production and investment in the auto industry, it is possible for automakers to achieve a moderate, economically and technologically feasible increase in CAFE standards. It is particularly important that any future changes in the CAFE standards should ensure that full-line manufacturers are not placed at a competitive disadvantage relative to companies that historically have specialized more in the production and sale of small vehicles. Moreover, our country needs to remain the production site for the full range of car and truck models, including smaller vehicles with higher fuel economy. We consider assurance of this a crucial part of any acceptable proposal.

One approach to reforming CAFE being considered in Congress, for example the Feinstein-Snowe bill, proposes that the standard for light trucks be harmonized upward to equal the substantially higher level established for passenger cars. This approach is not a balanced one and if implemented would cause serious competitive disadvantages to domestic full-line manufacturers with adverse effects on the jobs of our members. The UAW, therefore, opposes it. Domestic full-line producers have responded to the growing preference of consumers for SUVs, pickups and minivans by dramatically shifting their U.S. capacity to meet that demand. Upward harmonization of the light truck CAFE standard to meet the car standard would have a disproportionately negative impact on these manufacturers relative to foreign companies that are more specialized in cars. This would put at risk the jobs of our members who work in light truck assembly plants and at associated supplier operations.

Improvements to the fuel economy for our nation’s fleet of cars and trucks depend on the successful development, production and use of a wide range of fuel-efficiency enhancing technologies. Near-term and promising future vehicle technologies offer the potential to achieve better fuel economy without sacrificing the safety of the driving public. The federal government, working with the U.S. auto industry, has played an active role in helping move potentially fuel-saving technologies from the drawing board to our nation’s highways and needs to continue to do so.

Federally sponsored and funded R&D programs have proven instrumental in aiding the industry’s effort to develop advanced vehicle technologies. We believe these cooperative federal R&D commitments are important to continuing the progress of such endeavors, and should aim to help generate new jobs for American workers. In addition, the federal government needs to assure a national supply of nearly sulfur free clean fuels that many of the promising technologies require.

For our nation to garner the promising energy-saving benefits from advanced technology vehicles, we need to get them on the road as soon as it is economically and technologically feasible to do so. To foster and promote this process, the UAW supports legislative proposals to offer federal tax credits for the purchase of hybrid electrics, fuel cell-powered vehicles and other types of highly fuel-efficient advanced vehicles. Federal programs that promote the use of such vehicles in public and private fleets can contribute to a broadening introduction of advanced vehicles on our nation’s roads and highways.

In this Section:

CAFE
Electricity Deregulation
Global Warming