Ford CEO Mulally Discusses Fuel Standards with U.S. House Speaker, White House Officials
Ford President and CEO Alan Mulally held meetings today with U.S. House Speaker John Boehner as well as two top White House officials to urge the continuation of a single national fuel efficiency standard.
He also met with freshmen members of Congress to tout the importance of manufacturing, reported The Detroit News.
The head of the Dearborn-based automaker was in Washington to discuss a number of issues, including the economy, trade policy and energy issues.
Mulally met at the White House with Chief of Staff Bill Daley and Senior Advisor David Plouffe. A White House official said they "discussed last year's historic agreement on fuel economy standards that will save consumers money at the pump and make America more energy independent while reinforcing a resurgent American auto industry."
Ford invited the 93 first-term members of Congress — 84 Republicans, 9 Democrats - to a roundtable discussion this afternoon "to discuss making the right decisions, the way forward and the return of American manufacturing," according to an email message sent to freshmen.
The event was hosted by freshmen Michigan Reps. Dan Benishek, R-Crystal Falls; Bill Huizenga, R-Zeeland; and Jeff Duncan, R-S.C.
Mulally also met with House Speaker John Boehner, R-Ohio, and Rep. Fred Upton, R-St. Joseph, chairman of the House Energy and Commerce Committee. Boehner's office released a photo of the meeting afterward.
"American companies like Ford have demonstrated they are capable of making the tough choices that are required when times are tough. That is a quality the speaker appreciates," said Brendan Buck, a Boehner spokesman.
Boehner has been critical of the bailout of General Motors Co. and Chrysler LLC, as well as the decision of Delphi Corp. to terminate its pension plans. Ford did not receive a government bailout.
Mulally also met with Rep. John Dingell, D-Dearborn.
One issue raised by Mulally was the Environmental Protection Agency and National Highway Traffic Safety Administration's ongoing efforts to write the proposed fuel efficiency standards and tailpipe emissions limits for the 2017-2025 model years.
In May 2009, automakers, California and the White House agreed on a national standard for fuel efficiency increases and tailpipe emissions limits for the 2012-2016, requiring about a 40 percent increase in fuel efficiency to a fleetwide average of 34.1 miles per gallon over 2009 levels.
Those standards will cost the auto industry an estimated $51.5 billion over five years. The requirements will save a projected 1.8 billion barrels of oil and add about $1,000 to the cost of a new vehicle — but reduce fuel costs by about $4,000 per owner.
As part of the deal, California waived its right under a 2007 Supreme Court decision to impose its own tailpipe emissions limits. At least a dozen states have signed on to adopt California's rules. But the Golden State is considering imposing its own rules for 2017 and beyond — a big concern of automakers that worry it would cause a "patchwork of regulations."
Federal regulators and California officials will propose draft regulations in September.
NHTSA and EPA are considering annual increases in fuel efficiency ranging from 3-6 percent between 2017 and 2025, which equates to a fleetwide average of 47 mpg to 62 mpg by the period's end. The range of government-estimated costs per vehicle is $770 to $3,500, depending on the stringency of the emissions limits.
More Industry

World EV Adoption Set to Grow
A new report says the segment, despite recent setbacks in some regions, is poised for acceleration as many countries look to reduce pollution.
Read More →
Black Book: Weekly Market Update
Wholesale automotive auction business stayed steady last week as bidders encountered lower prices, analysts observed.
Read More →
Pricing Transparency Drives Purchase Consideration
An annual study by JD Power found that clear pricing matters to consumers on automaker websites, so much so that it increases their purchase consideration.
Read More →
Black Book: Weekly Market Update
Used-vehicle market depreciation was the prevailing story in the wholesale market last week.
Read More →
Smaller Is Looking Better
A growing number of Americans in the market for a new vehicle are opting for more affordable options, not waiting for market stability to bite the bullet.
Read More →
U.S. EV Market Slowly Stabilizes
U.S. electric-vehicle interest is slowly stabilizing since a major dip in sales after last year's end of the federal EV tax credit, and hybrids remain the leading electrified power train.
Read More →
Global EV Market Entering New Phase
Automakers are making investments to lower battery costs and optimize production to meet changing consumer needs.
Read More →
Black Book Weekly Market Update
The holiday weekend, not surprisingly, put a drag on wholesale automotive activity last week, analysts observed.
Read More →
Auto Affordability in Context
Cox Automotive points out the complex circumstances that have led to eye-popping vehicle prices.
Read More →
Black Book: Weekly Market Update
Automotive auction inventory increased last week, giving choosy bidders even more leeway.
Read More →