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Auto Dealers Ass'n: "CAFE Increase Would Threaten Vehicle Choice"

14 June 2000

    WASHINGTON - Consumers would be the ultimate losers if Congress mandated an 
increase in fuel economy standards for light trucks, according to the American 
International Automobile Dealers Association (AIADA).

    "Some of the most popular and versatile vehicles on the road today also
are among the least fuel efficient.  If Congress mandates an increase in fuel
economy, certain models of pickups, minivans and sport-utility vehicles could
potentially be eliminated from the market," said AIADA President Walter E.
Huizenga. "Customers who want and need these products would be deprived of the
choice of owning them."

    The issue will be debated when the fiscal 2001 transportation funding bill
is brought to the Senate floor this week.  Senators Slade Gorton (R-WA),
Richard Bryan (D-NV) and Dianne Feinstein (D-CA) have said they will offer a
resolution to the bill calling for an increase in Corporate Average Fuel
Economy (CAFE) standards.

    Enacted by Congress in 1975, the Corporate Average Fuel Economy (CAFE)
program mandates all manufacturers selling in the U.S. to meet certain fuel
economy levels.  Today, each manufacturer's fleet must average 27.5 mpg for
cars and 20.7 mpg for light trucks (pickups, minivans and sport-utility
vehicles).

    Rather than mandating increases in the CAFE standard, which would threaten
consumer choice in the marketplace, AIADA supports market-oriented tax
incentives for the purchase of highly fuel-efficient vehicles. "Congress
should let consumers choose what vehicles best meet their transportation
needs, rather than pass fuel economy standards that force popular vehicles
from the market," said Huizenga.