International Automakers Seek to Block California Action to Regulate Greenhouse Gases

ARLINGTON, Va., Feb. 3, 2005 -- The Association of International Automobile Manufacturers (AIAM)* announced today it is seeking to intervene in a lawsuit, challenging the California Air Resources Board's motor vehicle greenhouse gas regulation. The lawsuit AIAM seeks to join was filed December 7, 2004 by thirteen California new car dealers and the Alliance of Automobile Manufacturers in U.S. District Court in Fresno, California. The lawsuit was filed because the CARB regulations are de facto fuel economy standards, and only the Federal government can regulate fuel economy. The Federal statute governing motor vehicle fuel economy regulations prohibits states from setting standards "related to" fuel economy.

"It is important to note that AIAM members do not oppose fuel economy standards that apply equally to all manufacturers, are technologically feasible, and provide adequate lead-time," said Timothy MacCarthy, President and CEO of AIAM. "We are not changing this position. However, Congress has long-recognized that the creation of a patchwork of state laws regulating fundamental vehicle design elements would be harmful to the industry and costly to consumers. Accordingly, we are taking this action to uphold the principle of federal exclusivity regarding motor vehicle fuel economy."

AIAM member companies sell about 40 percent of the vehicles bought by California consumers. MacCarthy pointed out that, "companies represented by AIAM are leaders in bringing advanced fuel-efficient technologies to market."

The control of motor vehicle fuel economy involves all aspects of a motor vehicle's design, including its size, weight, shape, as well as the type of engine, transmission and fuel and materials used. "Federal law establishes the U.S. Department of Transportation as the sole agency authorized to set vehicle fuel economy standards, expressly preempting states from setting standards 'related to' fuel economy," said MacCarthy.

"It must be recognized that climate change is a global issue and does not lend itself to local control. Unlike tailpipe emissions which lead to smog, where impacts are primarily local, the emissions covered by the CARB regulation disperse throughout the atmosphere," said MacCarthy. "Therefore, climate change issues are better addressed at the national and international levels, as appropriate."

* The Association of International Automobile Manufacturers (AIAM) is a trade association representing 14 international motor vehicle manufacturers who account for 40 percent of all passenger cars and 20 percent of all light trucks sold annually in the United States. AIAM members have invested over $26 billion in U.S.-based production facilities, have a combined domestic production capacity of 2.8 million vehicles, directly employ 75,000 Americans, and generate an additional 500,000 U.S. jobs in dealerships and supplier industries nationwide. AIAM members include Aston Martin, Ferrari, Honda, Hyundai, Isuzu, Kia, Maserati, Mitsubishi, Nissan, Peugeot, Renault, Subaru, Suzuki and Toyota. AIAM also represents original equipment suppliers and other automotive-related trade associations.