Wednesday, November 7, 2007

Better Mileage Makes Sense

Citigroup Report Says Automakers Can Profit from CAFE Standards

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.

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