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AAMA, AIAM React to American Petroleum Institute Announcement To Offer Low Sulfur Gasoline

20 March 1998

AAMA, AIAM React to American Petroleum Institute Announcement To Offer Low Sulfur Gasoline

    WASHINGTON, March 20 -- The following statement was issued by
Andrew H. Card, Jr., President and CEO of the American Automobile
Manufacturers Association (AAMA) and Philip A. Hutchinson, Jr., President and
CEO of the Association of International Automobile Manufacturers (AIAM) in
reaction to the American Petroleum Institute's announcement of their offer for
low sulfur gasoline nationwide:

    "AAMA and AIAM are disappointed with the oil industry's offer to reduce
sulfur in gasoline, which at best maintains the status quo.  It is unfortunate
that the oil industry is offering a geographic regional approach to improve
the quality of gasoline, especially since the Coordinating Research Council
and auto industry studies show greater environmental benefits can be realized
nationwide by reducing sulfur levels all the way to current California levels.
It is important to note that low sulfur refining technology is available today
that could reduce sulfur to California levels for a nominal cost of a penny or
two per gallon.
    "This offer fails to build upon the significant air quality benefits to be
achieved when employing advance emission control technologies.  Just last
month, the automobile industry committed to going beyond regulatory
requirements by voluntarily making LEVs available nationwide.  The country
also needs clean fuels.  The emission benefits from LEVs, as well as all the
vehicles on the road today, will be substantially discounted without clean low
sulfur fuels.  In fact, a worldwide clamor is heard for low sulfur fuel.
Unfortunately, it appears that the U.S. oil industry is taking a 'wait and
see' approach regarding future regulations expected by EPA later this year."

    AAMA is the trade association whose members are Chrysler Corporation
, Ford Motor Company and General Motors Corporation
.  Visit AAMA on the World Wide Web at http://www.aama.com.
    AIAM is the trade association representing U.S. subsidiaries of
international automobile companies doing business in the United States.

SOURCE  American Automobile Manufacturers Association; Association of