Detroit jumps into the fuel economy debate

While automobile manufacturers are committed to working with Congress on a comprehensive carbon dioxide reduction strategy, a major tightening of the fuel economy rules could have a negative impact on the industry, according to Charles Territo, spokesman for the Alliance of Automobile Manufacturers, which represents the Big Three as well as Japanese heavyweight Toyota.

Auto manufacturers are working on bringing more fuel-efficient technologies to market, but the development of these technologies could be hampered if tough new rules are put in place, he said.

“These technologies take significant financial commitments from the manufacturer before they become technically feasible, and any resources that need to be diverted from these programs in order to meet an increase in fuel economy could delay the introduction of these leapfrog technologies,” which include gasoline-electric hybrid vehicles, or cars that run on fuel cells, Territo said.

“If you have to pull all of your engineers off developing advanced technology to meet a new requirement that is onerous, something is certainly going to suffer,” he said. “I would say it would certainly be challenging for all manufacturers,” he added, noting that it would be especially challenging for the Big Three, given the financial difficulties they face.

Speaking at this year’s New York auto show Bob Lutz, GM’s plain-spoken head of global product development, said that the technology required to boost fuel economy could cost at least $5,000 per vehicle. Automakers have jointly filed suit against regulations adopted by California and copied by 10 other states, including Vermont, where they are attempting to block the measures from being enacted.

Automakers and dealers are challenging the state’s right to regulate carbon-dioxide emissions. It is the first in what is expected to be a series of court fights over jurisdiction in stemming global warming.

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As the move to curb greenhouse-gas emissions gathers momentum, the automotive industry is pushing for an economy-wide constraint, where the burden is shared equally by all industries, according to Territo, of the industry trade group.

He notes that automobile manufacturers have steadily increased the fuel-efficiency of their products and worked to develop “greener” vehicles, but over the years consumers have opted to buy fuel-inefficient SUVs and trucks, giving a skewed image of their offerings. CAFE standards are based on what an automaker sells, not what it produces, he said.

Indeed, the Ford F-150 pickup truck, which is not exactly the world’s most fuel-efficient vehicle, has been the nation’s top-selling U.S. vehicle for the last 20 years.

“We believe that an effective strategy to curb greenhouse gases will consider not only the vehicles, but also the fuels used and consumers’ choices,” Territo said. “If you are not considering the consumer and the fuels used, you’re not going to be able to solve the problem. If people want big cars, manufacturers are going to sell them. What we need to do is improve their fuel efficiency, while giving consumers the same vehicle options that they demand.”

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