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 |  Aug 05 2011, 4:00 PM

Volkswagen was one of several large automakers that did not sign off on the Obama Administration’s proposed Corporate Average Fuel Economy (CAFE) standards for 2025.

“We still have a dialogue going on with the administration in terms of how we think the policy needs to be adjusted,” said Jonathan Browning, CEO of Volkswagen Group of America.

Volkswagen is worried about the current proposed rules that place an unfairly strict rules on passenger cars. Heavier light trucks on the other hand, have much more lenient terms attached to them. Passenger cars maybe required to achieve 5% annual improvements and light trucks may face 3.5 percent annual improvements. The largest trucks on sale face almost no ruling for the 2017-2020 time frame.

“The proposal encourages manufacturers and customers to shift toward larger, less-efficient vehicles, defeating the goal of reduced greenhouse-gas emissions,” one spokesman said.

Volkswagen is also upset regarding the administration ignoring the improvements the German automaker has made to its diesel models. Diesels offer up to 30 percent better fuel efficiency and are installed in up to 80 percent of some VW models sold in the U.S.

“Diesels are growing to pretty much twice the scale in terms of (U.S. sales) of electric vehicles and hybrids together. It’s a technology that is available and affordable…and we think it should be part of the landscape going forward,” Browning explained.

[Source: Wards Auto]