By Mike Spector
DETROIT--A review of federal fuel-economy standards in 2017
represents a "critical business issue" for auto makers as consumers
increasingly flock to less-efficient pickup trucks and
sport-utility vehicles amid cheap gasoline, U.S. Rep. Debbie
Dingell (D., Mich.) said.
Ms. Dingell, the wife of Rep. John Dingell, the longest-serving
congressman until his retirement in 2014, on Monday expressed
concerns that federal mileage targets could be tough for auto
makers to meet should gas prices remain cheap and consumers
continue preferring larger vehicles that get worse fuel economy
than smaller cars.
"You can't regulate customer preference," Ms. Dingell, serving
her first congressional term, said on the sidelines of the North
American International Auto Show in Detroit.
Federal mileage rules call for auto makers to sell a portfolio
of light-duty cars and trucks averaging 54.5 miles a gallon by
2025, though trucks have a lower target than cars.
The fleetwide target for cars and trucks rises in 2016 to 37.8
mpg and 28.8 mpg, respectively.
Ms. Dingell, who once worked for General Motors Co. and is along
with her husband a longtime industry ally, stressed the importance
of protecting the environment and called the law in the 1970s that
created corporate average fuel economy, or CAFE, "among the most
important pieces of legislation passed in the history of this
country."
But she said the ramifications of increased sales of trucks and
SUVs amid cheap gasoline are "real" and "serious."
Auto makers plan vehicles years in advance, making them
vulnerable to big swings in commodity prices, especially oil and
the subsequent price at the pump.
Adam Jonas, a Morgan Stanley analyst, said in a research note
that lobbying from auto makers for some relief on federal mileage
standards could begin "now" in anticipation of the 2017 review.
Ms. Dingell's comments came moments after GM Chief Executive
Mary Barra introduced the Chevrolet Bolt concept vehicle, which she
said could get 200 miles on a single battery charge and only cost
about $30,000. But the car won't be in showrooms until at least
2017.
GM's current plug-in hybrid with a backup gasoline motor, the
Volt, doesn't sell nearly as well as its flagship truck, the
Chevrolet Silverado, which consumes far more fuel. GM sold about
18,800 Volts in 2014, down more than 18% from a year earlier. GM
sold more than 529,000 Silverados last year, up more than 10% from
a year earlier.
"We fully intend on meeting the requirements," Ms. Barra said of
the federal mileage targets.
Write to Mike Spector at mike.spector@wsj.com
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