Broad Support as Obama Unveils New MPG Rules

While until now automakers have steadfastly stood against any major MPG increases, Obama was joined by an alliance of auto executives, union leaders and environmental activists, sort of a strange gathering.

The new rules will begin to take effect in 2012. As often requested, the rules will put implement a federal standard for fuel efficiency that is as stringent as California's. At the same time, it will also impose the first-ever limits on global-warming emissions from cars and trucks.

Obama said the following at a White House ceremony:

"This gathering is all the more extraordinary for what these diverse groups — despite disparate interests and previous disagreements — have worked together to achieve. 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.

"The status quo is no longer acceptable. We have done little to increase fuel efficiency of America's cars and trucks for decades."

Both environmentalists and auto industry execs welcomed the change, but for different reasons. Environmentalists of course call it a long overdue change to emissions and fuel economy standards after decades of delay and industry opposition.

And speaking of those industry opposers, auto industry officials said it would provide the single national efficiency standard they have long desired and a reasonable timetable to meet it.

Strangely, just last year, US automakers said with the recession in full swing, it was the wrong time to impose new rules. I suppose they are encouraged somewhat by the infusion of cash that has kept them running long past their "natural deaths," despite the fact that Chrysler has entered Ch.11.

The new national fleet mileage rule for cars and light trucks of 35.5 MPG by 2016 roughly shadows the California requirement, which will be shelved as a result. Currently, the national standard is slightly more than 25 miles per gallon.

Interestingly, while automakers have long said they could not meet increased MPG standards, European automakers, forced into such standards by higher fuel prices, have done so easily.