Auto Manufacturers Agree to CAFE Changes

Despite major advances in vehicle technology, Corporate Average Fuel Economy (CAFE)
standards have barely changed since they became law back in 1975. Currently, each
manufacturer’s fleet must average 27.5 mpg for cars and 20.7 for light trucks. U.S. auto
manufacturers have dragged their heels in the face of new legislation to raise CAFE
standards, but the Alliance of Automobile Manufacturers said manufacturers it represents
will no longer resist efforts to improve fuel-economy standards. Instead it will seek
incentives for customers who buy advanced-technology vehicles. The repositioning has been
approved by a committee of industry executives after years of criticism by environmental
and consumer groups.