The federal government last week proposed a fuel-economy requirement that will require automakers to double the average miles-per-gallon of their vehicles to 56.2 miles-per-gallon by 2025, a plan a GM (NYSE:GM) executive said Monday would be tough.
GM North American President, Mark Reuss, told The Wall Street Journal that automakers will have to be creative in producing cars and light trucks that will meet the new requirements while still being affordable to consumers.
Several automakers have already begun exploring fuel-effective technologies, in hopes the new vehicles will be cost-effective in the long run. For example, GMs new Chevrolet Cruze cuts fuel to the engine when the vehicle slows down, Reuss told the Journal. Research is being done by other automakers to develop tires with limited resistance.
The United Auto Workers, the industry's largest union, will support government programs promoting fuel-saving technology, though it will not take a specific stance on the new legislation.