# DAILY READING FILE

Message Information Date 07/21/2011 09:51 AM From Matt Blunt <mblurit@americanautocouncil.org > LisaP Jackson/DC/USEPAIUS@EPA; "ray.lahood@dot.gov ' <ray.lahooddot.gov > "rbloomwho.eop.gov " <rbloomwho.eop.gov > Subject Fuel economy standards Message Body Dear Secretary La Hood and Administrator Jackson, The American Automotive Policy Council (AAPC) and its member companies—Chrysler, Ford and GM - thank you for all of the work you and your agencies have done to accomplish the 2012-2016 standards. As you know, one reasonable national fuel economy standard is imperative for the domestic auto industry. Attached is a letter on behalf of AAPC and its member companies regarding the 2017-2025 standards that are being developed. We request that any standard be rooted in science, technology and consumer demand, and we look forward to working with you to develop these standards.
I can be reached at mb l unt@a mericanautocouncil.org or at 202-789-0030. Thank you. Sincere regards, Matt Blunt President
American Automotive Policy Council AAPC letter on FE - July 21 .docx

OEX Processing Information Processed Date: Processed By Pa Office category:the Honorable Ray La! I ood

Secretary Department of Iransportation 1200 New Jersey Avenue, SE Washington, DC 20590 1 )ear Secretar y Eat lood and Administrator Jackson: The I lonorahie Lisa Jackson Administrator Environmental Protection Agency 1200 Pennsylvania Avenue, NW Washington, DC 20004

On behalf of the American Automotive Policy Council (AAPC) and its member companies - Chrysler Group LLC, Ford Motor Compan y and General Motors Company 

### we wish to share our views regarding national fuel economy standards br 201 7-2025. First. we thank your agencies for finding a balance between protecting the enviromnent, helping create American jobs and giving manufacturers a degree of near-term certainty for the 2012-2016 standards, and we look borward to working with y ou to achieve this outcome again. Our companies take pride in their commitments to the current ambitious standards and are working hard to meet them. In fact, by the F.PAs own estimates, the industry will spend 1.5 billion in research and development to achieve these standards. Movng forward, we encourage NI-EISA and EPA to develop one national fuel economy standard and increase fuel economy standards to the maximum ftasihle level, which Congress delines as a level that balances technological feasibility with economic practicability. Standards that do not maintain this balance will not only dramatically increase the costs of vehicles, they will lead to job loss] ust as the industry is rebounding. Sales are up, our companies are hiring new workers and we are creating new shifts at assembly plants - all while producing some of the most fuel-efficient vehicles on the road. But the governments own study. conducted by the U.S. Energy Inb'ormation Administration (LEA). warns about a decline in vehicle sales ifoverl y aggressive fuel economy standards are put in place. According to the [IA, car sales would drop b y 8 percent if the fuel econom y standard was just 47mpg (3% year or year) and 14% at the level of 62 mpg (6% year over year). GM. lord and Chrysler directl yaccount for approximatel y200,000 jobs and many of these jobs would be endangered by a standard that does not balance technological feasibility and economic practicability. Job losses will not he limited to just our companies. hut thousands of suppliers, dealerships and repair facilities across the countr y as well.Even with todays high gas prices, trLicks and SLJVs account for about half of sales. A

standard that does not meet the balance Congress established would not only mean higher car and truck prices for families, hut small businesses that depend on vans. SLYs and pickups would face limited choices as well. The auto industrys ability to continue to design, build and sell the vehicles that supports these ohs depends on one reasonable national fuel economy standard. We ask that y ou balance these factors as you develop the 2017-2025 fuel economy standards. Sincerely,

N/latt Blunt AAPC Jkesidcnt