US

Obama sets "historic" fuel consumption standards for auto industry

Article published on the 2009-05-20 Latest update 2009-05-20 12:52 TU

US President Barack Obama with Ford CEO Alan Mulally at the White House on 19 May
(Photo: Reuters)

US President Barack Obama has announced a set of new standards for greenhouse gas emissions for US cars. On Tuesday Obama unveiled measures that are expected to lead to a reduction of 900 million metric tonnes of emissions.

The new policy will force US car manufacturers to reduce the average fuel consumption of new vehicles to 35.5 miles per gallon (mpg) by 2016. It currently stands at 25 mpg. Meanwhile, trucks will have to aim for 25mpg.

“We have set in motion a national policy aimed at both increasing gas mileage and decreasing greenhouse gas pollution for all new trucks and cars sold in the United States,” Obama said.

“What is all the more tragic is that we’ve known about these costs in one way or another since the gas shortages of the 1970s. And yet all too little has been done.”

Obama’s policy will begin with models made in 2012 onwards and it is thought the environmental measure will save 1.8 billion barrels of oil and could reduce America’s carbon dioxide emissions by 30 per cent.

Californian Governor Arnold Schwarzenegger at the White House on 19 May
(Photo: Reuters)

Californian Governor Arnold Schwarzenegger welcomed the new policy and praised Obama’s negotiating skills.

In 2004 Toyota, General Motors and other manufacturers filed lawsuits against the state to try and block a similar piece of legislation. They said fuel consumption should be dealt with centrally by laws and regulation passed in Washington.

Cars will become more expensive because of the new legislation, but this will be offset by savings on fuel.

Representatives from car manufacturers welcomed the policy, although a White House official denied that government bailout money was used as leverage in forcing manufacturers to accept the regulations.

As Obama delivered his speech detailing the regulations the following guests joined him on stage at the White House rose garden:

• Alan Mullaly - Ford CEO
• Jim Lentz - President of Toyota US
• Fritz Henderson - General Motors CEO
• John Mendel - Executive Vice President of Honda US
• Bob Nardelli - Chrysler CEO
• Dieter Zetsche - Daimler Chairman
• Ron Gettelfinger - United Auto Workers President