Tough challenges face US auto sector

THE US auto industry faces unprecedented challenges from proposed government fuel economy and pollution regulations, even though it is not the sole source of greenhouse gas emissions and has no control over fuel prices, a top Toyota Motor Corp official said.

"We've faced regulatory threats before, but never the tidal wave heading our way," Jim Lentz, executive vice president of Toyota Motor Sales in the United States, said in a speech on Wednesday at the Center for Automotive Research Management Briefing Seminars.

Lentz said cars and trucks are a highly visible part of American life and an easy target for regulators. He also said the industry is starting to make a difference by coming together to propose compromises on fuel economy rules and other issues as it works to make the clean vehicles of tomorrow.

"We need to constantly let the world know what we're doing to be part of the solution,"" Lentz said.

He also said the industry needs to prepare for the next generation of buyers who are savvy with technology, skeptical of advertising and used to products that are customized to their needs.

Lentz said the market will rebound in 2008 and grow steadily into the next decade.