Automakers will be more closely watching the federal government over the next few months as environmental groups continue to report that President George Bush is considering raising Corporate Average Fuel Economy (CAFE) standards on all vehicles sold in the U.S.

According to the United Press International, a preliminary version of the standard would require all cars and trucks to raise their fuel economy from 22.5 mpg in 2008 to around 24 mpg by 2011. Also under consideration is including larger SUVs and vans as affected vehicles for the first time as well. Regardless, the increased standard will raise automakers' costs.

UPDATE: Heavy duty pickups may be exempt after all.

[Source: Detroit News via UPI; Automotive News; PhotoDisc, Matt Ray/EHP]

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