Wednesday, November 7, 2007
Improved Mileage Pays Off
Citigroup Report Says Automakers Can Profit from CAFE Standards
By GreenBiz.com
WASHINGTON -- Anticipating legislation that will boost required gas mileage for cars in the United States, Citigroup has released a report showing that the auto industry can improve mileage and improve profits at the same time.
The report comes as the U.S. Congress is considering bills to raise the standards for the Corporate Average Fuel Economy (CAFE) standards, which dictate the miles per gallon achieved by an automaker's vehicle line. In June, the Senate passed a bill that would raise the average to 35 mpg by 2020, a 40 percent increase over the average 24.1 mpg currently achieved by the six major U.S. car companies.
"When you have the world's number one bank, which has financial ties to many major automakers, saying fuel economy standards are a good economic play, it drives a stake through the heart of the auto industry's scare tactics," said Representative Edward J. Markey of the House's Select Committee on Energy Independence and Global Warming.
The report, "CAFE and the U.S. Auto Industry; A Growing Auto Investor Issue, 2012-2020," was created by Citigroup, working together with Ceres and the Investor Network on Climate Risk. The report examines predicted changes to the CAFE standards, and finds that improved mileage requirements will be good for manufacturers as well as for the environment.
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2 comments:
Thank you Citigroup! The scare tactics of Automakers are getting out of control, threatening huge layoffs and loss of profit. What the bill will do is make the auto companies FINALLY restructure their plants to implement technology that they already have to create cars that will save Americans millions of dollars in oil costs. That is not to mention the effect that the standard of 35 mpg by 2020 will reduce pollutants and CO2 emissions which speed up climate change.
Another great portion of the bill that Congress is considering is a standard that 15% of electricity come from renewable resources by 2020. This is another achievable goal that will boost the economy and reduce emissions and pollution.
Show your support for this wonderful bill at Energy Bill 2007 by signing the petition that goes to our representatives.
Chessiakelley, thanks for coming by and adding that link. Well done!
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