April 3, 2007

Supreme Court Decision Big Blow to Big Three

Yesterday’s Supreme Court decision comes as pressure is building on automakers and Congress to reduce global warming by cutting emissions from vehicles, a move that could cost the auto companies billions of dollars, Detroit News reports.

Automakers took some comfort from a section of the decision suggesting states might not be successful in pre-empting federal rules. But even Republicans said the landmark decision meant new auto emissions rules are almost certain.

Automakers are already facing the prospect of tougher fuel economy regulations proposed by President Bush as part of his plan to cut gasoline consumption 20 percent by 2017. The goal amounts to a four percent annual increase in fuel economy that could cost automakers as much as $114 billion, with Detroit’s Big Three accounting for about $85 billion, according to the article.

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