U.S. automakers were powerless to stop new fuel-efficiency legislation. Now they have to get toiling to meet the mandateSince last December, when President Bush signed an energy bill that requires auto companies to achieve a 35-mpg fuel economy standard by 2020, with substantial improvements by 2015, auto executives have been gnashing their teeth while environmentalists have been flashing the V sign for victory.
Three months later, it has become evident the road to greater fuel efficiency is full of potholes. For one thing, the new legislation adds a new level of complexity to the 35-year-old CAFE system (sounds like French for "coffee," but stands for Corporate Average Fuel Economy). Then there's the issue of technology—or lack thereof: Automakers say they don't have the means to make pickup trucks and large sport-utility vehicles much more fuel-efficient than they are now. "We cannot get to 35 miles per gallon with anything resembling the current product portfolio, or with anything resembling current technology," said GM (GM) Vice-Chairman Robert Lutz.
Car companies also warn that the new standard will force them to raise prices on vehicles, which could spark a backlash from consumers. That may be the industry's best hope of getting politicians to revisit the legislation. James Press, who joined Chrysler last year as vice-chairman after a long career at Toyota Motor (TM), says the new bill is "just part of the political process," suggesting the law was all about Congress and the White House trying to show voters they are taking action on climate change and U.S. dependence on foreign oil. Press, who remains a staunch advocate of hybrid technology and reducing the carbon footprint of vehicles, says it may not be the last word on fuel economy.
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