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Obama unveils tough new car efficiency rules after secret talks with auto firms

US President Barack Obama has unveiled “historic” efficiency and greenhouse gas standards for US cars, forging a rare moment of unity between auto firms and environmentalists on climate change.

“For the first time in history, 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 on Tuesday.

The president gathered 10 auto industry chiefs, from crippled US firms to foreign giants, plus union bosses and environmentalists, to celebrate the deal forged by his administration in secret talks over the past few weeks.

Automakers will be forced to dramatically boost the efficiency of cars and light trucks by 2016, in a move that will save 1.8 billion barrels of oil and achieve cuts of 900 million tonnes of greenhouse gas emissions. The fleet average fuel consumption for US vehicles will be raised to 15.44 kilometers per liter, four years sooner than required by current US law.

The program, which begins with car models made in 2012, boosted Obama’s new climate change policy and represented early vindication for his political creed of change, unity and coalition building.

“In the past, an agreement such as this would have been considered impossible,” Obama said.

“At a time of historic crisis in our auto industry ... this rule provides the clear certainty that will allow these companies to plan for a future in which they are building the cars of the 21st century,” he said.

The announcement, greeted with delight by environmental campaigners, coincides with an effort by the White House and Obama’s Democratic allies in Congress to pass a landmark bill aimed at combating global warming.

Cars will be more expensive because of the new regulations — by up to US$600 per vehicle on top of the US$700 price hike expected with the latest Corporate Average Fuel Economy rules already passed by Congress. However, drivers will likely be able to recoup the cost as they will have to buy less fuel over the vehicle’s lifetime.

The new policy will give more certainty to struggling automakers like Ford, General Motors and Chrysler, which have been battered by the financial crisis and are working to refit vehicles by streamlining the regulatory process.

Ford chief executive officer Alan Mullaly said he was “absolutely pleased” with the new regulations, which he said would help drive development of sustainable vehicles which run on new generation energy sources.

Ten car firms and the United Auto Workers Union signed up for the deal.

Also See: Higher fuel efficiency standards in US will affect Taiwanese cars: researcher
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