In a reversal on Bush’s prior commitment to make a decision on the issue of Corporate Average Fuel Economy (CAFE) standards, the U.S. Department of Transportation (DOT) today revealed it will not make a decision before President-Elect Barack Obama takes office later this month.

Proposed CAFE regulations on new cars would force fuel economy upward toward a goal of 35mpg fleet-wide by 2020. The debate exists on how to graduate the progression toward that goal. The NHTSA has proposed one avenue to raised standards, seeking a total of 25% improvement by 2015, but that would cost the industry about $47 billion over the five-year period. …click here to read more

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Porsche will release another set of high profit figures for this financial year on the back of its growing stake in Volkswagen and its own successful sports car range, but despite this success the carmaker is very critical of the poor performance of some of its rivals and the U.S. government bailout for the automotive industry.

Porsche has experienced a year of record profit last year, with sales also reaching record levels, earning the company revenues of €7.4 billion. These figures are expected to be improved upon this year, according to Porsche CEO Wendelin Wiedeking. …click here to read more

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Trade association head blames credit and economic problems, urges implementation of the $700B rescue plan. The chairwoman of the National Automobile Dealers Association says the credit crunch and economic problems are likely to cause 700 auto dealers to go under this year.

Speaking to the Automotive Press Association in Detroit, Annette Sykora on Tuesday urged fast government action on putting a $700 billion financial industry rescue plan in place.

Auto dealers say that quick action will thaw frozen credit, restore consumer confidence and help the auto industry.

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Ford Motor Company is set to receive a $10 million grant from the United States Department of Energy to be spent on plug-in hybrid research and development. The government is funding half of Ford’s three-year plug-in development and demonstration program that currently has 20 plug-in hybrid vehicles on test.

According to the automaker, the three-year program is designed to demonstrate plug-in hybrids to consumers, as well as serve as a developmental test-bed for the untested technology. Ford has been working on a fleet of plug-ins with Southern California Edison, the Electric Power Research Institute, Johnson Controls-Saft and Michigan’s DTE Energy.

Ford is currently using the Edge and Escape SUVs as test-beds for plug-in hybrids. More details of the government’s grant are expected to be released tomorrow when an official announcement is made.

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The federal government has taken heed to calls from both unions and the carmakers, with the Senate finally approving funding for $25 billion in low-interest loans during a rare Saturday session. The program was approved in the House of Representatives earlier this week, and it will now be presented to President Bush to be signed in.

After Bush signs the bill, the Department of Energy will write rules to manage the loan program. The first loans are expected to be available by the middle of next year. …click here to read more

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