# DAILY 

# RL FILE' MM Michigan Manufacturers SMAssociatlon



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The Honorable Ray LaHood The Honorable Lisa Jackson Secretary Administrator Department of Transportation Environmental Protection Agency 1200 New Jersey Avenue, SE 1200 Pennsylvania Avenue NW Washington, DC 20590 Washington, DC 20004

Dear Secretary LaHood and Administrator Jackson: The Michigan Manufacturers Association (MMA) would like to express our views regarding the national fuel economy standards and the future of Michigan's economy and the national economy. MMA represents 2,500 companies in the full spectrum of manufacturing sectors and subsectors. Manufacturing represents the largest sector of the Michigan economy. The big three domestic automakers along with our substantial supplier base are significant contributors to Michigan's manufacturing based economy. The transportation sector is critical to the national economy as reflected in comments in the news release on June 24, 2011 for the first quarter of 2011 by the Bureau of Economic Analysis, U.S Department of Commerce, saying "Motor vehicle output added 1.18 percentage points to the first-quarter change in real GDP...." Policies that impact the transportation sector will clearly have significant impact on the Michigan economy. Current standards for 2012-20 16 have already increased fleet average by 40% to 35 miles per gallon. Going forward, policies must continue to consider the global nature of the transportation sector, the competitive and economic implications of U.S. policies on Michigan and American based companies. Regulatory constraints also constrain consumer demand and ultimately sales in the transportation sector. The next phase of fuel economy standards should not pick wirmers and losers, but should support a variety of technologies and fuel diversity to preserve affordability. If fuel economy standards increase too quickly, resulting in more expensive vehicles, many of our region's consumers can be expected to hold on to their older vehicles longer and defer buying a new car, which could put jobs across the country at risk and delay compliance with federal air quality standards. Affordability, customer choice and job preservation is as much a priority as raising fuel economy. The Michigan economy is recovering, driven in large part by manufacturing investment and job growth. Fuel economy standards must not change the competitive field at a critical time in the early phases of an automobile and manufacturing driven recovery in Michigan and nationally. The MMA is a strong advocate for the manufacturing sector and we encourage you to recognize the irreplaceable contributions made to the Michigan and national economies by the transportation sector. Fuel economy standards must not hinder the growth of American based jobs and investment. While new technology and innovation drives investment and job growth, untimely and excessive regulation will drive investment and job growth elsewhere. We appreciate your thoughtful consideration.

VP of Government Affairs

620 South Capitol Avenue • Lansing, Michigan 48933-2308 • Phone: 517-372-5900 • Fax: 517-372-3322 • www.mma-net.org Manufacturing focused. Member driven.00 UNIT

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