US President Barack Obama on Tuesday announced belligerent increase in auto fuel efficiency ever. This was done in a policy proposal that would regulate emissions for the first time and resolve a dispute with California over cleaner cars.

With the new proposal, average fuel standard for all passenger cars and light trucks will rise by 10 miles a gallon over today's performance to 35.5 miles per gallon between 2012- 16. Incidentally the current average mileage requirement for car fleets has not changed since 1990. It is 27.5 miles a gallon.

President Obama opined that the new fuel-efficiency rules will help save 1.8 billion barrels of oil and help companies like Ford and General Motors (GM) plan for the future. "This rule provides the clear certainty that will allow these [auto] companies to plan for a future in which they are building the cars of the 21st century," 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," Obama said in a Rose Garden announcement.

However the fuel standards will invariably jack up the prices of new cars said Obama. Although the price will go up by US$1,300, drivers can certainly save on fuel. "If you buy a car, your investment in a more fuel-efficient vehicle, as a result of this standard, it will pay off in just three years," he said.
 
The plan has received immense support from the US and key overseas automakers. Dave McCurdy, the president of the Alliance of Automobile Manufacturers, called the move a new beginning and added that the industry has complied to work with the White House. Besides, White House estimates that the new rules will slash emissions of greenhouse gases by 900 million metric tons.

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Posted by Amrith K.A on 21 May, 2009 3:21:55 PM IST #