Obama takes aim at climate-warming car emissions

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Obama said the new standards, announced at a White House ceremony attended by auto industry and union leaders, would reduce U.S. dependence on foreign oil and give five years of cost certainty to an auto industry battling to survive.

"The status quo is no longer acceptable," Obama said in an announcement that raised pressure on carmakers to transform and modernize the industry to produce more efficient vehicles.

"We have done little to increase fuel efficiency of America's cars and trucks for decades," he said, calling the standards the start of a transition to a clean energy economy.

Obama has made fighting climate change a priority for his administration, and lawmakers from his Democratic party are this week wrangling over a historic bill many hope will provide much broader guidelines for controlling greenhouse gas emissions.

Under the new vehicle standards, U.S. passenger vehicles and light trucks must average 35.5 miles per gallon (6.62 litres/100km) by 2016, which Obama said would save 1.8 billion barrels of oil over the lifetime of the program.

The Environmental Protection Agency would regulate tailpipe emissions for the first time under the standards.

The U.S. Congress does not have to approve the standards, which will be implemented through federal rules.

HIGHER PRICETAGS FOR CONSUMERS

The plan was praised by automakers and environmentalists but means higher price tags for consumers. Officials said they would recoup the money with lower fuel costs.

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