The Senate Energy Committee reportedly has rejected a plan by the Democrat political party to require sport utility vehicles and minivans to become more fuel efficient and achieve the same levels of fuel economy as passenger cars in six years.
Go deeper with GlobalData
Under the failed proposal, SUVs and other light trucks would have to meet the same 27.5 mile-per-[US] gallon rule for passenger cars by 2011, up from a current 21 mpg for light trucks, Reuters said.
The news agency noted that Democrat Dianne Feinstein of the state of California [home to a strong pro-environment lobby] tried to add the plan to a broad energy bill being debated by the committee but the panel voted against it, 15 to 7.
Supporters reportedly said closing the so-called “SUV loophole” would reduce US crude oil imports, cut down on polluting emissions and save consumers money.
According to Reuters, opponents countered that imposing a higher fuel standard would place further burdens on US automakers that are already suffering financially, endangering thousands of high-paying jobs – they also said the government should not dictate what vehicles consumers buy.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataFeinstein responded that that consumers are on waiting lists to buy more fuel-efficient hybrid vehicles made by Japanese automakers, while US companies are stuck with growing inventories of gas-guzzling SUVs.
“They (U.S. automakers) have essentially refused to listen to the marketplace,” she said, according to Reuters, adding: “Toyota is going to eat their lunch.”
