P&A Providers & Administrators
MenuMENU
SearchSEARCH

Automakers Group Asks White House to Say No to 62 MPG Standard

May 12, 2011
3 min to read


A trade group representing Detroit's Big Three automakers and Toyota Motor Corp. urged the Obama administration to reject efforts by environmental groups and 18 senators to impose a 62 mpg requirement by 2025.


The administration said it is considering annual increases in fuel efficiency ranging from 3 to 6 percent between 2017 and 2025, which equates to a fleetwide average of 47 mpg and 62 mpg by the period's end. The range of costs per vehicle is $770 to $3,500, depending on the stringency, reported The Detroit News.

Ad Loading...


Last month 18 senators led by Dianne Feinstein, D-Calif., and Olympia Snowe, R-Me., sent a letter to Transportation Secretary Ray LaHood and Environmental Protection Agency administrator Lisa Jackson urging them to adopt 62 mpg by 2025.


"A significant increase in fleetwide fuel economy - six percent annually - is both technically feasible and cost effective for consumers," they wrote.


The Alliance of Automobile Manufacturers - the trade group representing General Motors Co., Ford Motor Co., Chrysler Group LLC, Toyota and eight others - said in a letter the administration should set the targets based on analysis.


"Fuel economy and greenhouse gas targets should not be arbitrary numbers, chosen before the necessary analyses are completed," the group's interim chief John Whatley wrote in a letter to LaHood and Jackson made public today. That "would circumvent the rulemaking process and undermine the ongoing collaborative effort to set sound standards."


Automakers noted that 1.7 million direct jobs come from the auto industry. They cited an Energy Information Administration forecast released in April projecting that setting fuel economy requirements at 62 mpg in 2025 "would reduce sales by 14 percent."

Ad Loading...


Automakers argued that could lead to a 14 percent reduction in jobs - or a loss of almost a quarter million jobs. Automakers' health "depends on reasonable regulations that provide clarity and certainty, without pricing our customers out of the market or preventing them from choosing vehicles that can meet their diverse needs."


Automakers have been holding private meetings with California and federal officials in an effort to hammer out an extension of a national fuel efficiency policy in recent weeks.


A 2007 Supreme Court decision opened the door to California imposing its own tailpipe emissions limits. The prospect of state and federal emissions limits has been harshly criticized by automakers.


In the wake of the decision, the Obama administration reached a deal with California and automakers in May 2009 to set nationwide standards for the 2012-16 model years that will hike fleet-wide fuel efficiency to 34.1 mpg by 2016. The deal essentially extended California's proposed standards nationwide, but gave automakers additional flexibility in early years.


California's standards were adopted by a dozen other states.

Ad Loading...


The measure will cost the auto industry $51.5 billion over five years, but also save 1.8 billion barrels of fuel over the life of the vehicles.


The Obama administration says it would save $3,000 per vehicle in gas over the life of the vehicles.


The administration is working on the 2017-2025 regulations and California is also working on its own proposal. Both proposals are to be issued in September, but officials said it could be delayed.

More Industry

Kia Niro SUV in gold color parked outdoors
Industryby Hannah MitchellSeptember 1, 2026

Kia Closes Out Summer With a Bang

Its U.S. subsidiary broke multiple records in August, in part due to a surge of demand for hybrids models.

Read More →
Outside of Auto Park Ford dealership
Industryby Lauren LawrenceSeptember 1, 2026

Indiana Dealership Changes Hands

A 30-year-old Ford dealership in Indiana has a new owner and will soon be undergoing renovations to meet manufacturer requirements.

Read More →
Three men standing in front of two classic cars handing off gift.
Industryby Hannah MitchellAugust 25, 2026

Texas Dealership No Longer in the Family

The Ford store, a longtime cornerstone of the Houston market, is now part of one of the fastest-growing U.S. auto groups.

Read More →
Ad Loading...
Outside of modern car dealership “Genesis of San Bruno
Industryby Lauren LawrenceAugust 25, 2026

Genesis Grows California Presence

The Cardinale Automotive Group opened its third Genesis rooftop in the Golden State, Genesis of San Bruno, a stand-alone dealership serving the San Francisco Bay Area.

Read More →
Red Honda Civic hybrid sedan on two lane road with green hills in background
Industryby Hannah MitchellAugust 21, 2026

August Auto Sales a Mixed Bag

An early forecast shows strong business despite consumer hurdles, and hybrids are a big piece of their affordability coping strategy.

Read More →
EV charger inserted into dark-colored car port
Industryby Hannah MitchellAugust 18, 2026

EV Market Humming Along

July sales show steady growth as the segment stabilizes from last year’s artificial surge following pullback of federal support.

Read More →
Ad Loading...
car in background with hand giving a thumbs up in front
Industryby Lauren LawrenceAugust 14, 2026

Auto Loan Delinquency Rates Stabilize

Auto loans are a main driver of nonmortgage consumer debt, but delinquency rates stabilized in the second quarter across all credit risk tiers.

Read More →
blue sky, yellow and orange rollercoaster with riders going up an incline
Industryby Lauren LawrenceAugust 12, 2026

EV Sales Recover in Q2

The EV sales roller coaster continues as numbers show improvement, but industry experts predict a year-over-year third-quarter decline and fourth-quarter jump.

Read More →
Photo of blue Toyota Prius parked next to body of water with city skyline in background
Industryby Hannah MitchellAugust 5, 2026

The Cheapest Hybrids to Fuel

The powertrain is increasing in popularity, in no small part due to its fuel economy. A new report lists the most efficient hybrids on the market.

Read More →
Ad Loading...
white SUV parked in front of a body of water with a gray sky background
Industryby Lauren LawrenceAugust 5, 2026

Hybrids and SUVs Gaining Ground

The most recent Kelley Blue Book Brand Watch found that only two nonluxury brands increased in shopper consideration, buoyed by their hybrid and SUV offerings.

Read More →