Obama unveils 'historic' car efficiency standards

President Barack Obama has unveiled "historic" efficiency and greenhouse gas standards for US cars, forging a rare moment of unity between auto firms and environmentalists on climate change.

"For the first time in history, we have set in motion a national policy aimed at both increasing gas mileage and decreasing greenhouse gas pollution for all new trucks and cars sold in the United States," Mr Obama said on Tuesday.

The President gathered 10 auto industry chiefs, from crippled US firms to foreign giants, plus union bosses and environmentalists, to celebrate the deal forged by his Administration in secret talks over the past few weeks.

Automakers will be forced to dramatically boost the efficiency of cars and light trucks by 2016, in a move that will save 1.8 billion barrels of oil and achieve cuts of 900 million metric tonnes of greenhouse gas emissions.

The fleet average fuel consumption for US vehicles will be raised to 35.5 miles per gallon by 2016 from the current 25 miles per gallon - four years sooner than required by current US law.

Most passenger cars must reach 39 miles per gallon by 2016 and light trucks must satisfy fuel consumption regulations of 30 miles per gallon.

The programme, which begins with car models made in 2012, boosted Mr Obama's new climate change policy and represented early vindication for his political creed of change, unity and coalition building.

"In the past, an agreement such as this would have been considered impossible," said Mr Obama.

"At a time of historic crisis in our auto industry... this rule provides the clear certainty that will allow these companies to plan for a future in which they are building the cars of the 21st century."

California Governor Arnold Schwarzenegger, who led a fuel-efficiency drive in his own state that was thwarted by auto giants, paid tribute to Mr Obama's deal-making skills.

"Very quietly, he had everyone negotiate and everyone stay quiet and things move forward, and he was very successful," he said. "This has been a huge victory for the state of California."

The announcement, greeted with delight by environmental campaigners, coincides with an effort by the White House and Mr Obama's Democratic allies in Congress to pass a landmark Bill aimed at combating global warming.

Cars will be more expensive because of the new regulations - by up to €440 per vehicle on top of the €514 price hike expected with the latest Corporate Average Fuel Economy rules already passed by Congress.

However, drivers will likely be able to recoup the cost as they will have to buy less fuel over the vehicle's lifetime.

The new policy will give more certainty to struggling automakers like Ford, General Motors and Chrysler, which have been battered by the financial crisis and are working to refit vehicles by streamlining the regulatory process.

Ford Chief executive officer Alan Mullaly said he was "absolutely pleased" with the new regulations, which he said would help drive development of sustainable vehicles which run on new generation energy sources.

Harmonising various regulatory standards "will benefit consumers across America," said new GM chief executive officer Fritz Henderson.

White House spokesman Robert Gibbs denied that the billions of dollars the government is doling out in bailout money to GM and Chrysler had forced them to accept government demands to sign up to the programme.

The tough new standards represent "one of the most significant efforts undertaken by any President, ever, to end our addiction to oil and seriously slash our global warming emissions," said Sierra Club executive director Carl Pope.

Ten car firms and the United Auto Workers Union signed up for the deal, on the grounds it would provide a nationwide and industry-wide standard for auto efficiency requirements.