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December 19, 2007
President Bush's signature on the new energy legislation raising the Corporate Average Fuel Economy (CAFE) mileage standard won't end the industry's fuel-economy torment, according to thecarconnection.com
Tom Stephens,, the executive in charge of General Motors' powertrain group, said this week the real challenge for the auto industry is the new legislation calling for limits on greenhouse gas, which is pending in California and 20 other states.
The California greenhouse gas proposal amounts to a 43-mile per gallon fuel economy standard, one senior GM executive told TheCarConnection.com.
So far, the industry's efforts to block the California proposals in court have been frustrated. Only last week, the industry lost a key fight in a Fresno courtroom when a federal district judge ruled that California had the right to apply its own fuel-economy rules under federal law.
The continuing court battles and new rulings by the U.S. Environmental Protection Agency, giving states more latitude to limit emissions of carbon dioxide, will have a huge impact on the industry, Stephens said.
Posted by Peter C. T. Elsworth 
at 10:30 AM to Fuel economy
, Government regulations
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