KEY POINTS:
General Motors says it is evaluating its future lineup of rear-wheel-drive vehicles in light of stricter fuel economy standards from the US federal Government.
Rear-wheel-drive vehicles use more petrol because they are heavier and typically used for high-performance driving.
GM product chief Bob Lutz has been a vocal critic of a proposal by the Bush Administration to raise corporate average fuel economy (Cafe) standards by 4 per cent annually to average 34 miles per gallon (8.3 litres/100km) by 2017.
Lutz has said the new requirement, up from 27.5mpg (10.2 litres/100km) today, could add US$5000 ($6750) to the average cost of a vehicle.
In an interview with the Chicago Tribune, Lutz said GM had put a hold on future rear-wheel-drive vehicles.
"We've pushed the pause button. It's no longer full speed ahead," said Lutz.
GM has two rear-drive cars in the works: the Chevrolet Camaro sports coupe due in 2008 and a replacement for the Chevrolet Impala sedan due in 2009.
"It's too late to stop Camaro but anything after that is questionable," said Lutz.
GM had not made any changes to its product plan yet, said John Smith, vice-president of Global Product Development. "However, we continue to cautiously monitor pending regulations and their implications to some segments."
The Bush Administration wants to reduce US petrol usage by 20 per cent by 2017, in part by raising fuel economy standards.
DaimlerChrysler says it doesn't plan to alter its future vehicle plans. But increases in Cafe and new standards for carbon dioxide would likely require more sophisticated engines - and the possible demise of some V8s.
"You could see a smaller displacement, pressure-charged V6 as a replacement for a V8," said Frank Klegon, the Chrysler group's executive vice-president of product development.
Depending on the final regulations, carmakers might need to emphasise diesels and mild hybrids "as different solutions for displacement for fuel economy and performance."
GM's global rear-drive car platform was created by its Australian subsidiary, Holden. The RWD cars are larger and heavier than the front-drive models they replace. V6 and V8 engines also will be offered.
"We don't know how to get 30 per cent better mileage from RWD cars," Lutz said.
The US Supreme Court has ruled that the Environmental Protection Agency can regulate carbon dioxide, (CO2), a gas that contributes to global warming.
Reducing CO2 can only be achieved by burning less fuel, said Lutz. The agency has not said if or how it will regulate CO2.
Lutz said: "We'll decide on our rwd cars when the government decides on CO2 levels and Cafe regulations."
- REUTERS
