Gas Prices Add Urgency to Fuel Economy Push

Washington DC May 25, 2007; The AIADA newsletter reported that Sen. Charles Schumer (D-N.Y.) and two other senators released a report yesterday estimating that a typical household with children could save $3,489 over five years if Congress raised fuel economy standards to 35 m.p.g.

According to the Detroit Free Press, the study by the Senate Joint Economic Committee was meant to bolster Senate Democrats' plan to bring a bill to the Senate floor the week of June 11 requiring new cars and trucks to achieve 35 m.p.g. by 2020.

Congress hasn't approved a change in fuel economy standards since it first approved them in 1975, but Schumer said this year's debate was different. "There is a broad consensus around a bill that does a lot," he said. "We think we have a good shot at passing it."

Evidence suggests new car buyers aren't waiting for Congress to act. Sales of smaller, more efficient models were up this year even before the price surge in gasoline.

Industry researcher Art Spinella said earlier this month that about 6.8% of new vehicle buyers are trading in due to higher gasoline prices, and that share should rise to about 8% by 2010.