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New fuel standards will bring changes to Michigan

Tuesday, May 19, 2009

Customers will soon pay more for better mileage ::

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Gabe Gutierrez
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WASHINGTON (WJRT) -- (05/19/09)--President Barack Obama moved Tuesday to federalize auto industry standards.

He wants to force Detroit to squeeze more miles and less pollution out of a gallon of gas.

Gov. Jennifer Granholm joined the president at the White House Tuesday. Her trip underscores how important these changes will be for Michigan.

Politicians in Washington seem to embrace the new standards. But analysts around the country are wondering whether the Big Three automakers can make this happen in seven years.

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Here in Mid-Michigan, hybrids have never been too popular. Local dealerships thrived on selling heavy trucks for decades.

But places like Joseph Ford in Grand Blanc Township are now getting more requests for high-mileage vehicles.

The Ford Fusion hybrid is in demand, even though many local dealers don't stock it yet. But a Kettering University analyst says the president's new plan might be too ambitious.

"It's technically possible," said Kettering's Prof. Craig Hoff.

"Whether the automakers are going to be able to survive with the whole line of cars that meet the standard that no one wants to buy because they don't want to pay the extra money or whether they don't feel safe or any of that other nonsense, that's where the challenge is going to come up.

"So the technology can be found. It's whether or not you can sell the technology is the scary part."

Granholm is betting on that technology in a big way. In April, state lawmakers approved massive tax incentives for companies to build batteries in the state.

Tuesday, Michigan's national legislators officially asked for $2 billion in federal stimulus grants.