Article: Carmakers giving up their fight against gas mileage standards

Carmakers giving up their fight against gas mileage standards

Associated Press

Friday, February 23, 2001

Washington -- Automakers agreed Thursday to abandon their longtime legislative priority of freezing federal gas mileage standards, shifting their focus to promoting a tax credit for buyers of fuel- efficient, high-tech vehicles.

Industry representatives said they would support the kind of credit proposed last year by Energy Secretary Spencer Abraham and Attorney General John Ashcroft, while they were in the Senate. The proposal called for as much as $3,000 for gasoline-electric hybrid vehicles and $4,000 for those powered by fuel cells, which make electricity with little or no pollution.

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