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GM says it favors fuel-efficiency rules based on historic rates

WASHINGTON — General Motors backs an annual increase in fuel-efficiency standards based on "historic rates" rather than tough Obama era rules or a Trump administration proposal that would freeze requirements, according to a federal filing made public on Monday. The largest U.S. automaker said the Obama rules that aimed to hike fleet fuel efficiency to more than 50 miles per gallon by 2025 are "not technologically feasible or economically practicable." The Detroit automaker said that since 1980, the motor vehicle fleet has improved fuel efficiency at an average rate of 1 percent a year. Fiat Chrysler Automobiles NV said in separate comments that the auto industry is complying with existing fuel efficiency requirements by using credits from prior model years. As a result, even if requirements are frozen at 2020 levels, "the industry would need to continue to improve fuel economy" as credits expire, it added, warning if the government hikes standards beyond 2020 requirements "the situation worsens ... without some significant form of offset or flexibility." Fiat Chrysler and Ford urged the government to reclassify two-wheel drive SUVs as light trucks, which face less stringent requirements than cars. A four-wheel drive version of the same SUV is considered a light truck. Ford backs fuel rules "that increase year-over-year with additional flexibility to help us provide more affordable options for our customers." GM's comments said it was "troubled" that President Donald Trump's administration wants to phase out incentives for electric vehicles. The Trump plan's preferred alternative freezes standards at 2020 levels through 2026 and hikes U.S. oil consumption by about 500,000 barrels per day in the 2030s but reduces automakers' collective regulatory costs by more than $300 billion. It would bar California from requiring automakers to sell a rising number of electric vehicles or setting state emissions rules. The administration of former President Obama had adopted rules, effective in 2021, calling for an annual increase of 4.4 percent in fuel-efficiency requirements from 2022 through 2025. GM has been lobbying Congress to lift the existing cap on electric vehicles eligible for a $7,500 tax credit. The credit phases out over a 12-month period after an individual automaker hits 200,000 electric vehicles sold, and GM is close to that point.

Weekly Recap: Marchionne's Manifesto again calls for industry consolidation

Sergio Marchionne isn't taking no for an answer. Despite public rebuffs from General Motors and Ford, the leader of Fiat Chrysler Automobiles continues to push for consolidation within the auto industry. His latest assertion came Wednesday when he said a combination of FCA with another automaker could net savings of $5 billion or more annually. No, this isn't about selling his company, he claimed, it's about cutting costs. Put simply, the auto industry wastes money, Marchionne said during FCA's earnings conference call. Companies invest billions to develop basic components that all cars use, but many consumers don't care how they work or recognize the differences. "About half of this is really relevant in terms of positioning the car in the marketplace," he said. "The other half, in our view, is stuff which is neither visible to the consumer nor is it relevant to the consumer." In 2014, top automakers spent more than $100 million on product development, FCA estimated. Marchionne said consolidation could save up to $1 billion on powertrains alone, noting that almost every automaker offers four- and six-cylinder engines. Not everyone has to make their own, he contended. "The consumer could not give a flying leap whose engines we are using because they are irrelevant to the buying decision." That's pretty provocative for enthusiasts, but less so for average consumers. Still, there are major differences in power and efficiency ratings, even among similar engines. Skeptics could argue consolidation would also weaken competition and reduce choices for car buyers. Marchionne stressed his presentation, curiously entitled Confessions of a Capital Junkie, wouldn't require closing factories or dealerships. It's not his final "big deal" as CEO, intent to sell FCA, or a way to elevate his company up the automotive food chain. He claims he wants to fundamentally change the industry and its habit for burning cash. "The horrible part about this, and the thing that I find most offensive, is that the capital consumption rate is duplicative," he said. "It doesn't deliver real value to the consumer and it is in its purest form, economic waste." Other News & Notes Ford Profits dip in first quarter Ford profits fell $65 million to $924 million in the first quarter, hampered by slight dips in revenue and sales.

2023 Detroit Auto Show Editors' Rankings

The 2023 Detroit Auto Show was back in its traditional location, though in its fall spot in the calendar, and it was another pretty quiet event. By our count, only five new models, or model lines, were revealed and brought to the floor; all of which came from Detroit's own car companies. Still, some of them were quite significant, and the types were diverse. Naturally, we also had our favorites. So take a look to see how we ranked the reveals of the Detroit Auto Show. 2025 Cadillac CT5 View 15 Photos 5. 2025 Cadillac CT5 The refresh for the 2025 Cadillac CT5 is no great revelation, because it doesn’t have to be. An already solid, attractive design means only light tweaks were made to its appearance, and the new front fascia and redesigned lights just make the CT5 just that much more aggressive. So what was missing from the current model? Apparently, the answer was a gorgeous 33-inch curved LED display serving as both infotainment and instrument cluster. It has touchscreen capability to both the right and left sides of the steering wheel, and provides 9K resolution. Update some of the safety and driver assist tech, and — boom — the CT5 is properly modernized. Now bring on the updated Blackwing. –Senior Editor, Green, John Snyder 2024 Jeep Gladiator Live View 10 Photos 4. 2024 Jeep Gladiator Jeep carved out plenty of time for what is essentially a no-brainer mid-cycle refresh, but thereÂ’s one among us who is easily swayed: Me. I dumped the maximum number of points allotted on the 2024 Gladiator with only three words of explanation: "I like Jeeps." But this is kind of a big deal. The Gladiator pulled a lot of weight for Stellantis during the pandemic by providing an alternative to pickup buyers while Ram dealers were scraping the bottom of the supply barrel. To be fair, we're probably giving the Gladiator a bit of advance credit here for its promise to deliver a 4xe variant in 2025, but who else is talking about their PHEV pickup plans? Your move, Ford. –Associate Editor Byron Hurd. 2024 GMC Acadia AT4 View 17 Photos 3. 2024 GMC Acadia The 2024 GMC Acadia is the one reveal from this yearÂ’s Detroit Auto Show that was actually a totally new vehicle, and as far as three-row SUVs go, GMC aced it. The exterior has its own personality separate from its Chevrolet Traverse twin. Its AT4 trim is legit with more ground clearance, a torque-vectoring rear diff and sweet orange marker lights on the fenders.