GM puts brakes on rear-wheel-drive cars

DETROIT, April 12 (UPI) -- General Motors Corp. has called off plans for almost all new rear-wheel-drive cars for fear of far stricter U.S. fuel-economy standards, the automaker says.

GM is concerned heightened mileage requirements will penalize it for producing new versions of high-performance rear-wheelers, product-development Vice Chairman Bob Lutz told The Chicago Tribune.

Lutz has argued the Bush administration's plan could add $5,000 to a car's average cost.

While GM would not offer details about the cutbacks, the move may mean the world's largest automaker will not replace the full-size rear-wheel Buick Lucerne and Chevrolet Impala sedans or a rear-drive Cadillac compact, The Detroit News reports.

But it still plans to make the Chevrolet Camaro sports coupe next year and the Pontiac G8 sedan, being developed with subsidiary GM Holden Ltd. in Australia.

The administration has said it wants to cut U.S. gasoline usage 20 percent by 2017. This would include raising fuel-economy standards 4 percent annually, bringing cars to an average 34 miles per gallon by 2017, up from 27.5 mpg today.

The U.S. Supreme Court ruled last week the U.S. Environmental Protection Agency has the authority to regulate carbon dioxide emissions.