US set to embrace fuel efficiency standards

US car makers should soon be forced to increase the fuel efficiency of their vehicles by 40 per cent before 2020 in a bid to reduce pollution.

Democrats in the country's House of Representatives have this week agreed to a bill dictating that current model cars and light trucks made for sale in the US must achieve efficiency of 35 miles per gallon as a fleet average. Experts are convinced that after months of negotiations with the auto industry the new rules will now be passed.

The move is aimed at reducing the country's escalating greenhouse gas emissions under the popular Corporate Average Fuel Economy (Cafe) fuel efficiency standard.

"We are confident that this final product will win the support of the environmental, labour and manufacturing communities," said House speaker Nancy Pelosi.

She added: "This landmark energy legislation will offer the automobile industry the certainty it needs, while offering flexibility to automakers and ensuring we keep American manufacturing jobs and continued domestic production of smaller vehicles."

The US has the lowest standard of fuel efficiency of any country in the world, including China. Countries in the EU and Japan have standards that are twice as high.

The introduction of the Cafe standard is, however, a blow to Detroit's automakers. The Big Three: General Motors, Ford and Chrysler, as well as Japan's Toyota have been fighting its implementation.

They argue that it will lead to reduced car sales because consumers shun weak-performing hybrid and smaller-sized vehicles in favour of those with more power. They also claim it heaps the cost of fuel inefficiency on manufacturers without offering any incentives for consumers to choose green vehicles.