US automakers prepare to brace up for tougher emission standards

US automakers are coming under increasing pressure from the new administration to come out with more fuel efficient and environment friendly cars. They say that while they have started working toward reducing fuel consumption, keeping up with pace at which stricter emission standards are sought to being imposed may force them cut back on production of larger, more profitable vehicles adding to the financial woes.

US president, Barak Obama had ordered the government on Monday to consider whether California and other states could regulate vehicle emissions to cut greenhouse gas emissions in a policy reversal from the Bush administration.

The announcement has come at a time when recession hit US automakers have been forced to borrow billions from the government to avoid bankruptcy and as Toyota prepares to report its first loss in 70 years. The president's announcement was followed by General Motors reporting plans of cutting 2,000 jobs at Ohio and Michigan due to depressed demand.

The adoption of California regulations at this stage, according to leading experts in automotive research would have a disastrous impact on the industry which is already in a bad shape. It would not serve the interests of anyone and action on the proposed standards would have to wait.

They say that the regulations would need to be watered down through major modifications. Car makers too would require more time to address the financial problems and develop the technologies that would that would help realise the fully compliant vehicles.

Right now, carmakers say they would be able to market the Toyota Prius, a hybrid that has seen falling sales on the plunging gas prices while popular vehicles like pickup trucks built by Ford and GM would not qualify the fuel efficiency bar.