Domestic automakers accept 35 mpg CAFE fuel standard

Earlier this year, Toyota, Honda, Nissan, Hyundai and ten other import automakers have told the U.S. Congress they can accept a recently-approved standard calling for an average fuel economy of 35 mpg across their model lines, and now the Big Three have also made the same announcement.

General Motors, Ford and Chrysler have been the lone automakers opposing the bill for the past month, but a statement released last week by top congressional Democrats vowing to pass the bill convinced the automakers to give up the fight.

Dave McCurdy, a lobbyist for the auto industry, said in a statement that the proposed standards "will be good for both consumers and energy security. We support its passage."

GM's CEO, Rick Wagoner, called the new standards "a challenge that GM is prepared to put forth its best effort to meet."

Toyota recently came under fire for aligning itself with GM, Ford and Chrysler in opposition to the new CAFE standards.

GM has said the new rules will put some of its rear-wheel-drive performance projects on hold.

The White House and Detroit Three recently backed a proposed compromise that would call for a 32 mpg average fuel economy for light trucks and 35 mpg for car by 2022.

While unconfirmed, Automotive News is reporting that the Detroit 3 will get some concessions in exchange for accepting the proposed standards, including: a temporary continuation of CAFE credits for building vehicles capable of burning alternative fuels, the ability to trade CAFE credits between car and truck fleets and additional government funding.