The White House will unveil an auto fuel efficiency proposal on Tuesday to resolve a dispute between California and the U.S. government over emissions and accelerate the timeframe for sharply improving mileage performance, industry and other sources said.
The proposal, if accepted by California and a dozen other states that want to more aggressively target greenhouse gasses, would effectively end legal and political battles with the struggling auto sector over the best way to cut fuel consumption and curtail tailpipe emissions.
It would also put more pressure on struggling U.S. automakers like General Motors Corp (GM.N), Ford Motor Co (F.N) and bankrupt Chrysler LLC to accelerate development of more efficient gasoline engines, as well as new gasoline/electric hybrids and all-electric cars.
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