US automakers will be compelled to improve the fuel efficiency of their cars and light trucks by 40 per cent by 2020, under the terms of a new proposal from Congress.

This equates to their vehicles achieving at least 35 miles per gallon (mpg) as a fleetwide standard.

Meanwhile, individual cars must not exceed 27.5 mpg, while light trucks including minivans, sports utility vehicles and pickups, must be capable of 22.5 mpg.

The proposal was finalised on Friday following talks between congressional negotiators and Congressmen.

News of the deal comes after a similar measure was passed by the Senate in the summer, despite vigorous opposition from high-ranking delegates from General Motors, Ford and Chrysler.

The automakers had argued that the Senate's proposals were unreasonable on the grounds that car companies do not have the financing or the technology to make the fuel-efficiency targets attainable.

Source:

Lawmakers Set Deal on Raising Fuel Efficiency, 30/11/07
http://www.nytimes.com/2007/12/01/washington/01energy.html?bl&ex=1196658000&en=75e60ff9636770ca&ei=5087%0A

ANALYSIS-Rocky road ahead for energy bill in U.S. Congress,03/12/07
http://uk.reuters.com/article/oilRpt/idUKN0341331320071203

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