Sources say that the Obama administration is ready to unveil a new fuel-efficiency policy that will resolve a dispute between California and the U.S. government over emissions.
The new proposal will run from 2012 to 2015 and will maintain a single national standard for fuel-economy. It will also give automakers flexibility for meeting the new standards.
Sources familiar with the plan say that the strategy calls for raising the fuel-economy standards of cars and trucks to 35 mpg by 2016.
Two months ago, the government said fuel-economy standards for U.S. light vehicles would increase 8 percent to an average of 27.3 mpg by 2011, costing the auto industry $1.45 billion to make the necessary changes.
– By: Omar Rana
Image Credit: Pete Souza