Big 3 Take on Chin With New Senate CAFE Bill

(Akron/Tire Review) Seen as a major slap at Detroit’s Big 3 automakers, the Senate yesterday voted 65-27 to raise CAFE standards by 40 per cent no later than 2020. The measure calls for all passenger cars and light trucks/SUVs average at least 35 miles per gallon by that date.

Automakers immediately claimed the increased standards would cost them billions, and one – troubled Chrysler Group – said the measure would bankrupt them. The proposal also includes provisions against price gouging and a call for major increases in the production of ethanol.

The House, which passed its own version earlier this month, is expected to begin considering the Senate bill next week. The Senate bill also voted down a compromise package crafted by Michigan Senator Carl Levin, who worked with automakers to develop a lesser plan.

Critics, though, noted that the bill hammers automakers, which are all struggling to remain profitable, while leaving oil companies untouched. A separate Senate bill calling for a $32 billion tax on oil company profits to fund alternative energy projects was soundly defeated earlier this week.