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Ford CEO Mulally Discusses Fuel Standards with U.S. House Speaker, White House Officials

May 31, 2011
3 min to read


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.

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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.

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"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.

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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.


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