Chrysler goes green, incoming owner fights raised mileage rules
Associated Press
Friday, June 29, 2007

SAN FRANCISCO - Chrysler Group said Wednesday it has joined a group of companies and environmental organizations pushing the federal government to enact laws aimed at curbing greenhouse gas emissions.

At the same time, Cerberus Capital Management, which is in the midst of purchasing 80 percent of Chrysler from parent DaimlerChrysler AG, is aggressively lobbying against tougher fuel standards that they warn could cripple the auto maker, according to the Detroit News.

Chrysler spokeswoman Shawn Morgan declined to comment on what the report called a Cerberus blitz on Capitol Hill, saying that "we know there will be an increase and we support it _ we just need to make sure it's technically feasible."

Last week, the Senate passed a bill that includes raising the Corporate Average Fuel Economy standards to 35 miles per gallon by 2020, a 40 percent increase from the standards currently imposed on autos rolling off assembly lines.

The regulations could cost struggling Detroit auto makers upward of $85 billion. Chrysler is poised to take the biggest hit, considering its sales consist of about 70 percent trucks and SUVs, more than any other major car company, which puts it at the high end of the CAFE scale.

Chrysler is joining the United States Climate Action Partnership, along with General Motors Corp., the first auto maker to add its heft to the cause.

Other members of the group include General Electric Co., Dow Chemical Co. and Alcoa Inc. - all seeking legislation on carbon emissions.

"Now is the time for advancing a national approach to climate change where all of us - individuals, industry and government - take action toward reducing emissions of greenhouse gases," Chrysler Chief Executive Tom LaSorda said in a statement.

From the Friday, June 29, 2007 edition of the Augusta Chronicle
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