The government on Friday imposed the first increase in mileage standards for passenger cars. It also boosted the floor for sport utilities and pickups beginning with model year 2011.

The regulation is an abbreviated version of the initiative launched by Congress and the Bush administration in 2007 to reduce U.S. dependence on imported oil and cut emission levels.

It also comes at a time when the future of the domestic auto companies such as General Motors, Ford and Chrysler are not clear. These three companies have been profiting till now, from much less efficient vehicles but it looks as if that is about to change. The economy downturn and the consumers willingness to change into better fuel efficiency is fueling this move.

Will these companies survive? Can US cut down on their oil consumption levels?

We need to wait and see