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17th January 2008

The House of Representatives’ Energy and Commerce Committee Chairman John Dingell, a Michigan Democrat, told reporters on 15th January at the auto show that he wants to draft a climate bill which would acknowledge that the 40% improvement in energy efficiency to be achieved by the U.S. automotive industry with new corporate average fuel economy rules should be matched by other industry sectors, to “see that the pain is shred evenly all around.”

Sen. Dingell said Congress would also consider helping US car manufacturers meet the tougher efficiency standards, but could not say if any proposals would be in his climate bill. Republican presidential contender John McCain has voiced support for legislation that would provide incentives for car makers to reduce emissions and energy use through R&D investment support, for example in battery technologies.

Bob Lutz, GM’s vice chairman in charge of product development, said at the Detroit show that the new CAFÉ rules will add, on average, $6,000 to the price of GM vehicles sold in the U.S.

Another concern for manufacturers in the U.S. has been the emissions legislation of California, echoed by bills in several other U.S. states, for which the federal Environment Protection Agency recently refused to grant a waiver from federal law. The California bill would effectively require tougher CO2 emissions limits than the new CAFE rules, and manufacturers will be awaiting the result of California’s lawsuit against the EPA with concern – Senator Dingell said at Detroit that U.S. carmakers could “implode” if that measure eventually cleared the courts and regulators and were adopted by all states, a scenario he called worst case.

Edward Lapham, Automotive News’ executive editor, last week commented thus on politicians’ current attention to Michigan’s woes: “It's odd to hear national political commentators in the media discussing the tough economic issues facing Michigan. It's almost like watching your own autopsy being performed by scalpel salesmen instead of a doctor.”

(Reuters/Planet Ark, 17th January, Automotive News, 10 January)

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