EU softens CO2 stance - Is CAFE next?

Not only US automakers are suffering

The EU is "ready to grant automakers a three-year delay until 2015 to reduce the CO2 emissions of their new vehicles" because of the "global economic crisis" according to AFP.

With US automakers facing mergers and possible bankruptcies, does a similar fate await CAFE regulations?

While Honda and Toyota, are ramping up production of hybrid cars, US automakers are canceling large hybrid SUVs and delaying the launch of new, more fuel efficient autos, such as the Chevy Cruze. Thus, can US automakers afford to meet new CAFE requirements without significant financial help beyond the $25 billion already allocated? And, if they cannot, will Congress intervene?