Industry chiefs: Higher CAFE is not the only answer
Harry Stoffer | Automotive News / March 14, 2007 - 12:44 pm / UPDATED: 3/14/07 2 P.M.
Simply raising fuel economy standards is not the answer to the threat of global warming or the nation's energy supply concerns, the executives argued.
In Europe, automakers achieve fuel economy levels that some members of Congress want to require in the United States. But much higher gasoline prices in Europe create consumer demand, Chrysler group CEO Tom LaSorda said in prepared testimony before a panel of the House Energy and Commerce Committee.
LaSorda did not call directly for higher U.S. gasoline taxes but said "a new and unique formula" for the United States should include "harnessing of market forces." Other company executives noted that Chrysler has endorsed higher gasoline taxes in the past.
The House panel sought testimony on the industry's role in combating global warming and improving energy security. Called to testify today at the unusual hearing were the CEOs of the Detroit 3; the president of Toyota Motor North America Inc., Jim Press; and UAW President Ron Gettelfinger.
'New approach'
U.S. Rep. John Dingell, D-Mich., chairman of the full committee, signaled before the hearing that he is receptive to ideas beyond corporate average fuel economy standards. In a conference call with reporters Tuesday, March 13, Dingell said: "We need a new approach." He did not elaborate.
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