U.S. Eases Fuel Economy Rule for ‘87-88 Cars

The Transportation Department today announced it is lowering the fuel economy requirements for 1987- and 1988-model autos.

Diane Steed, head of the National Highway Traffic Safety Administration, said the fleet-wide fuel efficiency standard will be reduced from 27.5 miles per gallon to 26 m.p.g., the required average for the 1986 model year.

Officials said the 27.5 m.p.g. standard would have resulted in the loss of tens of thousands of auto industry jobs.

The decision, according to industry experts, probably will allow General Motors Corp. to accumulate future credits and avoid paying more than $350 million in fines stemming from violation of the federal standard in previous years.

‘86 Figure Lowered

The Transportation Department agency, which is responsible for setting and enforcing the standard, had previously lowered the 1986 requirement.

In announcing that the standard will be eased for another two years, Steed said “a higher standard would have resulted in a loss of jobs for tens of thousands” of auto workers.

GM and other manufacturers had argued they could not meet the 27.5 m.p.g. standard required by the auto fuel economy law enacted in 1975 because customers are demanding larger, less fuel-efficient cars than they did when gasoline prices were soaring.

The manufacturers said that if they had to comply with the more stringent fuel economy requirements they would have to curtail production of the larger autos, close some plants and throw employees out of work.

Congressmen Complain

While the argument was accepted by the Transportation Department, it has been criticized by some members of Congress who opposed a lowering of the federal requirements.

Sen. Daniel J. Evans (R-Wash.) an opponent of fuel economy relief for the auto industry, disputed the contention that the higher standard would force auto makers to close plants and cause employees to lose their jobs.