Low oil could stall auto efficiency drive

WASHINGTON, March 5 (Reuters) – Falling oil prices could hurt investment in fuel efficient vehicles and capital projects designed to promote energy saving technologies, an automotive research firm warned on Thursday.

CSM Worldwide told the Environmental Protection Agency that some conditions for that scenario appear in play already with recession pushing oil prices down nearly 4 percent on Thursday on expectations of lower fuel consumption overall.

“It’s simple economics – consumers and investors are not likely to invest in fuel efficient vehicles and capital intensive new technologies if a sharp drop in oil prices undercuts them,” said Eric Fedewa, vice president of CSM’s global powertrain forecasts.

Reuters