Fuel rules chill GM rear-drive bid

General Motors has put plans for several rear-wheel-drive cars on hold, pending clarification of U.S. plans for revised fuel-economy rules and new carbon dioxide (CO2) regulations.

The new Chevrolet Camaro, scheduled to be built in Oshawa, is apparently safe, and plans to import the Pontiac G8 sedan from Australia will go ahead.

The mid-size 2008 G8, expected to arrive early next year, will take over from the front-wheel-drive Grand Prix. The latter name has been a Pontiac mainstay since 1962.

The G8 is the first North American vehicle featuring General Motor's new global rear-wheel-drive architecture developed by Holden, GM's Australian subsidiary.

But rear-drive replacements for the full-size Buick Lucerne and Chevrolet Impala sedans and a possible new compact Cadillac are believed to be affected by the rethought federal standards.

One of the proposals being considered by the U.S. government involves raising fuel-economy standards an average of 4 per cent annually.

In addition, the U.S. Supreme Court recently ruled that the Environmental Protection Agency has the authority to regulate CO2 emissions from vehicles.

Either or both of those scenarios could have a drastic effect on the type of vehicles auto makers will have to build to comply.

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