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UAW Joins Supporting Coalition of New CAFE Standards

by Auto News on July 19, 2011

Last week a meeting of the Detroit three and United Auto Workers (UAW) labor union was held to discuss the new impending corporate average fuel economy (CAFE) standards. The meeting closed with the parties against the new CAFE standards. There are concerns that the new regulations will negatively affect profitability, jobs and wages, and consumer spending by driving up vehicle cost.

Reuters reported today that the UAW joined the BlueGreen Alliance, a coalition of labor unions and environmental groups, who favor an increased CAFE standard. The alliance said in a letter to Obama, “We encourage you to propose standards that maximize oil savings and reductions of GHG pollution, strengthen the U.S. auto industry, increase the deployment of advanced technology, protect U.S. automotive jobs, and create more opportunity for American workers.”

The letter illustrated a positive outlook saying that increased CAFE standards may create additional employment opportunities as well as possibly provide gas pump relief. Also, minimizing the nation’s dependence on foreign oils – a key objective. The U.S. currently spends $1 billion daily for foreign oil, Reuters reports.

New CAFE standards are being considered for 2017 through 2025. Standards will apply to light-duty vehicles. A proposal is due by this September, followed by a final ruling in July 2012.

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