Under a mandate from Congress, the federal government is in the process of setting miles-per-gallon regulations for the coming years. Currently, it is the National Highway Traffic Safety Administration that is coming up with the regulations
Auto makers are lobbying to be given a break. The NHTSA, for example, is said to be considering fuel economy requirements of a fleetwide average of 31.6 mpg starting in the 2011 model year. This roughly translates to 36 mpg for passenger cars and 29 mpg for light trucks. The agency says that its proposed regulations would save 55 billion gallons of gasoline and more than $100 billion for consumers.
Automakers beg to differ. Detroit auto makers say that would cost them $46.7 billion through 2015. Chrysler says it would cost thousands of dollars to develop the new technology that is needed, not hundreds. And Toyota is saying that the increases in MPG being suggested for light trucks beginning in 2011 were too high.
Finally, Porsche warns that that it would force it to stop selling models in the U.S. under such regulations.