A Message from Irv Miller

FROM: Irv Miller SENT: 9/21/2007
TO: Toyota Employees
SUBJECT: Toyota Sets the Record Straight on CAFE

Dear Associate:

Toyota is currently the target of a campaign by the National Resources Defense Council (NRDC) that accuses us of opposing increases in the Corporate Average Fuel Economy (CAFE) standards for cars and light trucks. The assertion by this group that we are actively lobbying against increased fuel economy standards is just flat wrong, and we want you to be aware of the company's position on this important issue and the facts.

Fact: Toyota has long supported an increase in the CAFE standards. Moreover, Toyota has always exceeded federal fuel economy requirements. We've never waited for federal mandates. Under the current CAFE standard, an automaker's average miles per gallon for cars must exceed 27.5 and light trucks must exceed 20.7. Trucks weighing less than 8500 lbs. must average 22.5 mpg for model year 2008, 23.1 mpg in 2009 and 23.5 mpg in 2010.

The truth is: Toyota hasn't always supported increasing fuel economy. After the first round of fuel economy standards were fully implemented in 1985, Toyota and other Japanese automakers opposed a 1989 bill that would have raised fuel economy another 40% in ten years, using their extensive network of lobbyists to help defeat the measure. Toyota, in particular, already had vehicles in production in 1990 that were several miles per gallon over the 1985 standard, and likely could have done even better in the ten year timeline in the 1989 bill. (Source: Keith Bradsher, High and Mighty – SUVs: The World's Most Dangerous Vehicles and How They Got That Way, pp. 63-65)

Fact: There are various bills before Congress that would mandate a new target of 35 mpg by 2020 and require both cars and trucks to meet that standard. Our engineers tell us the requirements specified by these proposed measures are beyond what is possible. Toyota spends $23 million every day on R&D but, at this point, the technology to meet such stringent standards by 2020 does not exist.

The truth is: The National Academy of Sciences has determined that technology exists to get us beyond 35 mpg. While technology improvements add to vehicle cost, these improvements are offset by gasoline savings in five years or less. (Source: National Academy of Sciences, Effectiveness and Impact of Corporate Average Fuel Economy (CAFE) Standards, Board on Energy and Environmental Systems, Transportation Research Board, National Research Council, 2002.)

Fact: Toyota supports a proposal known as the Hill-Terry bill, HR 2927, that would set a new standard of from 32 to 35 mpg by 2022 (up to a 40% increase) and maintain separate categories for cars and light trucks. That won't be easy, but we believe it is achievable.

The truth is: We know that automakers can get to 35 mpg in 2020. Why should we settle for less?

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