NADA Says EPA Decision to Grant Calif. Waiver is Troubling

WASHINGTON, June 30 /PRNewswire-USNewswire/ -- In response to the action taken
today by the Environmental Protection Agency to allow California and 13 other
states to implement their own fuel economy and greenhouse gas program, John
McEleney, chairman of the National Automobile Dealers Association, issued the
following statement:

"EPA's decision to reverse its 2008 denial of California's request for a
pre-emption waiver is sadly a triumph of politics over good common sense.

"NADA has commended President Obama for his announcement last month
recognizing and addressing the 'patchwork' aspect of California's greenhouse
gas rules. We also recognize that California has stated its willingness to
conform its rules to the President's forthcoming national program.

"However, NADA remains concerned that today's action risks a series of
negative results if that conformity never occurs. These include the potential
for triple regulation of major manufacturers such as General Motors and
Toyota.

"Moreover, with its action today, the Obama administration has effectively
ceded the long-term setting of national fuel economy standards to unelected
California regulators. The administration has now created the framework for
three fuel economy standards, administered by three different agencies and
under three different sets of rules. As a result, consumers in the future risk
facing significantly reduced new vehicle choices and substantially higher new
vehicle prices."

BACKGROUND

Earlier this year, NADA released a comprehensive report on California's fuel
economy regulations entitled "Patchwork Proven." This report found that
California's fuel economy regime:

1. Is illegal under federal law;
2. Exempts over a dozen global automakers from regulation;
3. Creates a "cross-border sales loophole" that will encourage new
car buyers to purchase vehicles outside of "California" states;
4. Has a lower fuel economy standard than the federal CAFE standard; and
5. Creates a "patchwork" of differing state regulations.

SOURCE National Automobile Dealers Association

Charles Cyrill, NADA Public Affairs, +1-703-821-7121, or +1-216-870-8837
(mobile), ccyrill@nada.org, or Bailey Wood, NADA Legislative Affairs,
+1-202-547-5500, or +1-202-557-1674 (mobile), bwood@nada.org