Auto Execs Discuss Mileage With Congress

General Motors chairman and chief executive officer Rick Wagner answers questions during the company's 2007 Annual Meeting of Shareholders at the Hotel du Pont in Wilmington, Del., Tuesday, June 5, 2007. General Motors Corp. has awarded two contracts to companies that will help speed up development of its plug-in electric car called the Chevrolet Volt, GM Chairman Rick Wagoner said Tuesday. (AP Photo/Pat Crowe II) (Pat Crowe Ii - AP)

WASHINGTON -- The heads of Detroit's auto industry asked Congress on Wednesday to reconsider a proposal to increase fuel standards that the automakers say could hurt their industry.

The leaders of General Motors, Ford and the Chrysler Group discussed the impact of health care, trade and energy policies on their companies, and asked House and Senate leaders to look at alternatives to a proposed overhaul of Corporate Average Fuel Economy standards for vehicles.

During a luncheon with Senate Democrats, it was evident they face hurdles. Sen. Byron Dorgan, D-N.D., noted the industry had resisted past increases and was now running advertising saying a Senate proposal would "take your pickup truck away."

"I think the issue is over _ I think you've lost that issue. I think your position is yesterday forever," Dorgan told the executives. "I think the Congress is moving on and you're going to have increased efficiency requirements."

Rick Wagoner, General Motors Corp.'s chairman and chief executive, said the fuel economy program, developed in the mid-1970s, had failed to meet its goal of reducing gasoline consumption and oil imports. The country would be better off developing alternative fuels and advanced batteries for plug-in hybrids and electric vehicles, he said.

"Our only hope is that the policies we pursue in the next 10, 20, 30 years, I hope that we end up with better results," Wagoner said, adding, "We would like to work with you on it."

Wagoner said some of the proposals "look like a stretch and look tough" and others "don't look achievable."

Senate Majority Leader Harry Reid, D-Nev., said the industry had expressed a willingness to support some type of increase. "Whether it's enough, we'll find out. But at least it's a start," he said.

Next week, the Senate is expected to begin considering a proposal to raise CAFE standards to a fleet average of 35 miles per gallon for a manufacturer's cars and trucks by 2020, an increase of about 10 mpg over current levels. From 2020-2030, the auto industry would face 4 percent annual increases.

Attempts to raise fuel economy standards have made little progress in the past 20 years. A manufacturer's fleet of passenger cars is required to get an average of 27.5 mpg for any given model year, while a manufacturer's SUVs, pickup trucks and vans must get an average of 22.2 mpg. That's a combined average of about 25 mpg.

Auto industry officials have called the Senate bill unworkable and would prefer that the Transportation Department implement any increases. But they concede that Congress probably will impose higher standards this year as consumers deal with $3-plus gasoline prices and remain worried about global warming.

Ford Motor Co. CEO Alan Mulally said the companies had made "tremendous progress" on improving vehicle fuel economy and they were "absolutely committed to increasing fuel efficiency."