White House Closes Deal with Carmakers on Fuel Efficiency


The Obama Administration is close to a deal with the auto industry on aggressive fuel efficiency targets, according to a report from the LA Times. Sources close to the negotiations say that auto manufacturers may agree to targets as high as 54 mpg by 2025.

The automobile industry has been fighting the Obama Administration’s efforts to substantially increase fuel efficiency from 21 mpg to 54 mpg by 2025. Last week, the Alliance of Automobile Manufacturers unleashed a media campaign designed to turn public sentiment against increased fuel efficiency standards. But with 75% of Americans supporting standards that could save them as much as $150 billion in the coming decades, that argument may be a hard sell.

The compromise may give manufacturers more time to meet short-term standards, but would quickly increase efficiency after 2022.  The White said today the deal will be announced Friday and that it “will result in significant cost savings for consumers at the pump, dramatically reduce oil consumption, cut pollution and create jobs.”

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