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Support announcements could be made today

The deliberations between Washington and the automotive industry have been fierce when it comes to agreeing on the new CAFE standards for automobiles. The automotive industry still maintains that he cost to implement the tech to reach the CAFE standards proposed by 2025 will cut sales and cost jobs in the automotive market.

However, it looks like Washington and Detroit are near to making a deal, as five of the top automotive manufacturers (Chrysler, GM, Ford, Honda, and Hyundai) are ready to back a slightly reduced fuel economy standard by 2025. The original CAFE proposal had the fleet wide fuel economy average at 56 MPG by 2025 and the new reduced standards are 54.5 MPG.

However, the new plan also has other stipulations. Earlier this week DailyTech reported that Detroit was looking for reduced standards for light truck and work trucks. Washington is willing to deal according to the Detroit News. The new plan will see the fuel efficiency on light truck going up 3.5% annually from 2017 to 2012 -- in 2022-2025, the economy standards will go up by 5% anually.

There is also a plan to make special rules for work trucks as was requested by Detroit. An official in the Obama administration said, "We are encouraged by the strong, positive feedback we are receiving from many companies and look forward to wrapping up the discussions in the near future."

Announcements of support for the new plan could come as early as today reports The Detroit News. There hasn’t been word from the environmentalist camp in California that was strongly supporting higher CAFE standards. If California isn't happy, they still have the power to set their own standards within the state.

Transportation Secretary Ray LaHood said, "This is not easy, but the companies are being very cooperative. Frankly, everyone is working 24-7. These deliberations are going on somewhere between 12 and 18 hours every day for the last several days … I think we will get there."





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