Automakers get no help on fuel-efficiency rules

Analysis:

This story is based upon a recent meeting between the major US auto industry executives and members of Congress around the issue of regulating fuel efficiency standards, known as CAFE standards. The headline leads one to believe that some members of Congress were antagonistic towards the auto industry, even though the story itself cites a GM executive at length. Other sources that are cited except two Representatives who have opposing view points, and two Michigan Senators who are working on a “compromise plan.” What was excluded were non-partisan, non-auto industry voices, such as Public Citizen, which provided one of the few statements on the meeting between auto executives and members of Congress. Rep. Dave Camp from Michigan and Senator Stabenow were cited in support of the auto industry, but the story doesn’t provide any verification of the their claims nor any data on whether or not Camp or Stabenow have received campaign contributions from the auto industry. How would information on the financial relationship between the auto industry and these elected officials change how readers understood this issue?

Story:

Domestic auto chiefs looking for a congressional assist on beating back their foreign competitors instead got blindsided by some lawmakers who want them to play ball on fuel-efficiency standards.

The top executives of General Motors Corp., Ford Motor Co. and the Chrysler Group met publicly with congressional leaders Wednesday and urged them to reduce the cost of U.S. health care, get tough on negotiating global trade agreements and earmark more federal dollars for research.

Behind the scenes, however, they were pushing lawmakers to pull back on upping Corporate Average Fuel Efficiency (CAFE) standards, saying a major increase could sink their companies at a time when they’re struggling to stay in the black.

“The (Michigan) delegation must do all it can, both Republicans and Democrats, to ensure whatever legislation comes out of Congress has the support of the Big Three,” said U.S. Rep. Dave Camp, R-Midland, who met with the leaders, in a written statement.

But Sen. Byron Dorgan, D-N.D., was not as generous.

“I think the issue is over,” Dorgan, who has co-sponsored a bill to increase CAFE standards to a fleetwide average of 35 miles per gallon by 2020, told the auto executives at a luncheon. “I think you’ve lost that issue. Your position is yesterday, forever.”

Rick Wagoner, GM chairman and CEO, defended the auto companies, saying that CAFE hadn’t reduced dependence on foreign oil in the last 30 years and that other options, such as hybrid vehicles and fuels, might be more successful.

“We’ve had a great experiment for a long time, but that in itself hasn’t worked,” said Wagoner, referring to the fact oil usage has gone up in the United States despite the imposition of CAFE standards 30 years ago.

Environmentalists have argued for years that automobiles contribute significantly to pollution, but their efforts to increase standards have always fallen short. This year, however, the chances look better as lawmakers are increasingly concerned about global warming.

The Senate is expected to take up legislation overhauling CAFE standards next week. The proposed standard is 10 mpg higher than current levels. After 2020, fleetwide CAFE standards would be required to increase by 4 percent annually until 2030.

Currently the fleet standard for manufacturers is 25 mpg, although there are different standards for cars and trucks. The standard for passenger cars is 27.5 mpg compared to 22.5 mpg for pickup trucks, sport utility vehicles and vans.

Michigan Democratic Sens. Carl Levin and Debbie Stabenow are working on a compromise. Their proposal would increase standards to 36 mpg for cars by 2022 while boosting them to 30 mpg for pickup trucks and SUVs by 2025.

“The more we talk, the better,” said Stabenow after the luncheon. “The automobile companies are in fact taking a very aggressive approach to retooling their vehicles.”

Wagoner was joined by Chrysler Group CEO Tom LaSorda, Ford CEO Alan Mulally and United Auto Workers President Ron Gettelfinger in lobbying for a break on health care costs and a tougher, pro-domestic manufacturing stance by the United States when negotiating foreign trade agreements.

“American manufacturing and a key component, the automotive sector, are at a crossroads,” said LaSorda. “We are either going to adjust to the realities of the global economy or we will not survive.”