Tuesday, May 19, 2009

Obama Toughens Up Regulations on Fuel Efficiency

Today President Obama announced new nationwide rules for auto emissions and fuel-efficiency standards. These rules fall in line with California's long-disputed attempt to toughen auto standards on a statewide level. The new rules will take effect in 2012 and will require cars and light truck fleets to be 40 percent cleaner and more fuel-efficient by 2016.

While it was no surprise that environmentalist groups welcomed the change, the US auto industry is finally embracing the California-style standards for the first time since the state introduced the plan in 2002. With GM and Chrysler on their knees right now, they aren't in much of a position to pick a fight with the federal government. And since US car companies are getting out-sold by foreign competitors, the new standards might be the swift kick they need to change to manufacturing the smaller, more efficient cars that consumers have turned to in recent years.

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