Transportation Dept. Puts Extra Obstacles in Front of Detroit's Economic Recovery

U.S. To Raise Average Car Mileage Standards On 2011 Models
Friday, March 27, 2009

Sue Chang MarketWatch Pulse  

SAN FRANCISCO -- The Department of Transportation said Friday that it will raise the fuel economy standards for cars and light trucks to an industry-wide average of 27.3 miles per gallon for 2011 models, up 2.0 mpg from 2010 models. The tighter rule will save about 887 million gallons of fuel and cut carbon dioxide emissions by 8.3 million metric tons, the transportation department said. "These standards are important steps in the nation's quest to achieve energy independence and bring more fuel efficient vehicles to American families," said Secretary of Transportation Ray LaHood in a statement.

© 2009 MarketWatch, Inc.

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My Thoughts

While this is a noble goal, I wonder if this the best time to be putting restrictions on an industry that is can't keep their head above water without government assistance. It will cost the auto companies money to comply with the new standards, and for the Big 3, this is money that they don't have. It could very well backfire and be the final straw that will break Detroit's back.