New congressional consideration of an increase in fuel-efficiency standards for cars and light trucks poses a new threat to the already doubtful future of General Motors Corp.'s van assembly plant in Southeast Baltimore.
Raising the fuel standards known as Corporate Average Fuel Economy (CAFE) "jeopardizes our truck business," said William H. Noack, a GM spokesman. "It jeopardizes our business in Baltimore; in Janesville, Wis.; Wentzville, Mo."
David C. Prange, manager of the Baltimore van plant, declined to elaborate on the plant's future other than to point out that it is part of the truck group, and the fuel economy of the Chevrolet Astro and GMC Safari vans are pretty close to the CAFE limit.
Any increase in the federal fuel standards, Prange said, would put the 65-year-old Broening Highway assembly plant and the vans made here at a competitive disadvantage.
GM has already announced that it will end the second shift at the Chevrolet Astro and GMC Safari plant in July, with the elimination of up to 1,200 jobs, and has committed to making the Astro and Safari only until the third quarter of 2003.
Beyond that, the plant's future will depend on consumer demand for the vans, which have not undergone a major redesign since their introduction in 1984, or a GM decision to make another vehicle here.
GM is more concerned about the impact of an increase in CAFE standards on its fast-selling sport utility vehicles and pickup trucks.
The issue pits the auto manufacturers, who are trying to safeguard their biggest cash cows, against concerns about oil supplies, air quality and global warming. Since 1995, a rider on the transportation appropriations bill has frozen CAFE standards at an average 27.5 miles per gallon for an auto maker's new passenger cars and an average of 20.7 miles per gallon for its light truck fleet.
Some members of Congress want to increase the light truck standards to match that of the automobile. They could also raise the car standards.
"The whole idea [of boosting CAFE limits] makes the auto industry want to throw up," said David E. Cole, director of the University of Michigan's Office for the Study of Automotive Transportation.
"It disconnects them from their customers."
Light trucks, with their big, gas-guzzling engines, are extremely popular, Cole said. They account for one of every two new vehicles sold in this country and have a high profit margin.
