The Big Three and Mileage Standards: Obama and Round Two

As the President and Congressional leaders work on possible tax reform and massive cuts in Social Security and Medicare, other changes might be in store. The auto industry and the cars Americans drive could be radically altered by Obama Administration efforts to increase vehicle mileage standards. To get an $89 billion taxpayer bailout, car-makers went along, after decades of losing market share to Europe and Asia. Mileage standards of 34.1 miles per gallon by 2016 were part of the deal. Now, during weeks of closed-door negotiations, the Obama Administration has been pushing an average of 56.2 miles per gallon by 2025 but, this time, the industry has been pushing back, claiming that smaller, lighter, more efficient cars might not sell. Neither side will talk publicly about weeks of secret negotiations. We hear what's at stake.