Canada, U.S. aim at raising fuel efficiency on cars

The United States Congress passed legislation this week that would force automobile manufacturers to raise fuel efficiency standards. It's the first time in 32 years, U.S. lawmakers have raised the corporate average fuel efficiency (CAFE) standards. The new rule: By 2020, the combined fuel efficiency of autos churned out by the car companies would have to be 35 miles per gallon.

Canada generally follows the lead of the U.S. government on fuel efficiency standards although some environmental groups have been pressing Ottawa to be more aggressive, perhaps like the State of California, in pushing carmakers to make cars and light trucks that use less fuel and, hence, spew out less of the greenhouse gases that cause global warming.

The bill now goes to the U.S. Senate. There appears to be support there for the CAFE modifications but Republican senators are threatening to strip out much of the rest of an ambitious energy package and President Bush has threatened to veto the bill.

In the meantime, Transport Canada yesterday released the list of 2008 model year vehicles that qualify for a federal rebate of up to $2,000. This is the second year of this program and, for the first time, Canada's best-selling vehicle, the Honda Civic, is on the list.

There are six new models to the list this year — a car must get 6.5 L / 100 km or better to qualify — including the Nissan Rogue, the Honda Fit, the Mercedes Smart (left), the Mini Cooper Clubman and the Chevrolet HHR, but there are still no models from Kia or Hyundai, both of which had complained, along with Honda, that the arbitrary standard unfairly excluded some of their models which were rated at 6.6 L / 100 km.