Automakers Drop Push to Block Fuel Economy Freeze

Carmakers ready to drop objections to CAFE improvement in support of tax credits for fuel efficient vehicles.

Published: 23-Feb-2001

WASHINGTON (Reuters) - The U.S. auto industry said on Friday it will stop its congressional lobbying efforts to freeze fuel economy standards, saying it will promote tax credits for fuel efficient vehicles instead.

"We're not going to push that (a freeze)," said Gloria Bergquist, spokeswoman for the Alliance of Automobile Manufacturers. "We really want to be part of the debate on a broader energy policy rather than have all the attention be on a legislative tactic."

For the past six years, auto makers have persuaded Congress to block funding for the government to study fuel economy standards. The industry feared such a study would lead to new regulations to boost fuel efficiency.



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