Bush to Obama: Your call on fuel economy

January 7, 2:44 PMNY Autos ExaminerNick Yost

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The United States Department of Transportation has decided to let the Obama Administration make the final call on new fuel economy standards for the model years 2011-2015, according to a report in today’s Automotive News.

A decision had been expected from the Bush administration by the end of 2008, but that was before the nation’s economic woes threatened to throw the Detroit manufacturers into bankruptcy.

"The recent financial difficulties of the automobile industry will require the next administration to conduct a thorough review of matters affecting the industry, including how to effectively implement (the new energy law)," according to a statement released by the Department of Transportation.

The government has authorized a $13.4-billion bridge loan to General Motors, plus another $6 billion for lending arm GMAC LLC. Chyrsler LLC has been awarded a $4 billion loan.

Wednesday morning GM issued a statement saying that it does not believe it will need any further government loans to survive.

Enacted in 2007, the new energy law requires manufacturers to have a fleet-wide average of at least 35 mpg by 2020.
A rule proposed by the National Highway Traffic Safety Administration proposed raising fuel economy standards by approximately 25 percent from 2011 through 2015.

The Obama administration will have until April 1 to render a final decision. That’s because the government, by law, must give automakers at least 18 months lead time before it can require higher standards, the article noted.

The deadline for imposing higher standards for the 2011 model year is Oct. 1, 2010.

The Bush administration statement, according to Automotive News, said it has laid the groundwork for the next transportation department to come up with a ruling by the deadline.

Former Rep. Ray LaHood, R-Ill., has been nominated by President-elect Obama to be the next secretary of transportation.