Auto companies press states on California emissions

By John Crawley

WASHINGTON (Reuters) - Automakers and their allies have stepped up lobbying to convince states that a proposal by California to cut tailpipe emissions sharply to fight global warming could further depress the struggling U.S. industry.

There is concern among General Motors Corp, Ford Motor Co, Chrysler LLC -- and supporters in Congress and at state level -- that the California initiative may survive court challenges and possibly be adopted by New York, Pennsylvania, and more than a dozen other states.

Adding pressure is a fresh U.S. Senate proposal that would force the administration of George W. Bush to let California enforce its plan, which has been in federal legal limbo since 2002.

Prospects of the bill becoming law are uncertain, though it illustrates that powerful lawmakers, including leading Democratic presidential candidates, want stronger environmental protection than industry is prepared to deliver.

The California proposal calls for a 30 percent reduction in car emissions over eight years beginning in 2009, equal to a fuel efficiency target of 43 miles per gallon for cars and some light trucks. A new U.S. energy law, reluctantly backed by Detroit as the "devil you know," requires a 35 mpg average by 2020 -- 40 percent better than today's performance.

Industry executives and their allies said in interviews that a federal standard alongside a more challenging policy for certain states would wreak havoc with design and production plans and increase costs exponentially.

U.S. automakers, sandwiched between sliding sales and a softening economy on one side and a new mandate on the other, are scrambling to respond with more efficient engines and research on alternative fuels. The impact of December's energy law alone at GM is $6,000 per vehicle, the company estimates.

Dave McCurdy, chief executive of the Alliance of Automobile Manufacturers, said in an interview that the industry's lead trade group would redouble efforts to "educate" states that have committed to or are thinking about adopting the measure.