(Image source: Motor Trend)

BY: STEVEN SPARKMAN

While the White House has been embroiled in a battle over the debt ceiling, it’s also been haggling with the auto industry. CNN tells us about their agreement.

“President Obama says the cars we drive need to get better gas milage. He unveiled new standards for cars and light trucks today to do exactly that. Under the proposal, overall fuel economy would be to 54.5 miles per gallon by 2025. The average right now -- 27 miles per gallon." 

The 54.5 miles per gallon standard is less than the administration wanted-- a  56.2 standard. But the new standard is the first to have broad support from the auto industry. A Fox News analyst says -- that’s because the automakers won some victories of their own.

“The automakers got some sweeteners from the White House. They get some credits which will reduce the mileage number they have to hit. But most important -- the manufacturers won a midterm review of the higher standards in 2017-2018 to see what the technology is and whether consumers are responding the way the administration argues they will." 

The administration and automakers say the higher standards will reduce dependence on foreign oil, reduce fossil fuel emissions and save consumers at the pump. A blogger at NPR says the compromise is a promising sign.

“... it occurs to me that today's fuel economy announcement is just about the only thing happening in Washington this week (that we know of) that will make a positive difference for the country's future. Everything else is about surviving the next few days, or months, or at best the next election." 

Though the automakers are on board with the deal, some analysts are still skeptical. A writer for the conservative Heritage Foundation says the fuel standards are an abuse of power -- and have been since they were implemented in the ‘70s.

“When President Obama bailed out General Motors, he stressed that he had ‘no intention’ of running the auto company. Now he’s intent on running all of them." 

The new fuel standards will take effect in 2017, building up year by year to the 2025 number. Light trucks will have less stringent guidelines.

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Transcript by Newsy.