New fuel rules: Pay less at pump but more for cars

WASHINGTON -- Drivers will have to pay more for cars and trucks, but they'll save at the pump under tough new federal rules aimed at boosting gas mileage, cutting emissions and hastening the next generation of fuel-stingy hybrids and electric cars.

The new standards, announced yesterday, call for a 35.5 miles-per-gallon average within six years, up nearly 10 mpg from now.

By setting national standards for fuel efficiency and greenhouse-gas emissions from tailpipes, the government hopes to squeeze out more miles per gallon whether you buy a tiny Smart fortwo micro car, a big Dodge Ram pickup truck, or something in between.

The rules will cost consumers an estimated $434 extra per vehicle in the 2012 model year and $926 per vehicle by 2016, the government said.

But the heads of the Transportation Department and Environmental Protection Agency said car owners would save more than $3,000 over the lives of their vehicles through better gas mileage.

Transportation Secretary Ray LaHood said, "Putting more fuel-efficient cars on the road isn't just the right thing to do for our environment, it's also a great way for Americans to save a lot of money at the pump."

The requirements for the 2012-2016 model years pleased environmentalists. They also were welcomed by automakers who have been seeking a single standard after California and a dozen states tried to create their own rules.

But Don Hall, president and CEO of the Virginia Automobile Dealers Association, said he is concerned about the regulations because they would hurt consumers by increasing the price of vehicles.

"Due to the economy, there is a lot of pent-up demand out there; a lot of people desperately need a new vehicle. These new standards will make it a lot more expensive for people who can least afford it," he said.

Glen Besa, director of the Sierra Club Virginia chapter, called the measure a "triple win."

"The regulations today mean less money for gas, enhanced national security and they help the environment," he said.

The changes will cost the industry about $52 billion, but the government says the program will provide $240 billion in savings to consumers, mostly through lower fuel consumption. The changes also could help U.S. manufacturers who produce advanced vehicles, batteries and engines, the government said.

Each auto company will have a different fuel-efficiency target, based on its mix of vehicles. Automakers that build more small cars will have a higher target than car companies that manufacture a broad range of cars and trucks.

For example, passenger cars built by General Motors will need to hit a target of 32.7 mpg in 2012 and increase to 36.9 mpg by 2016. Honda, meanwhile, will need to reach passenger-car targets of 33.8 mpg in 2012 and ramp up to 38.3 mpg in 2016.

Some small-volume companies such as Porsche, Aston Martin and Lamborghini will not have to meet the standards initially, but all automakers will need to comply by 2017.