Washington, 28 July 2011: Reuters

The Obama administration has reached a compromise with automakers on a new fuel economy target for cars and trucks, ending months of negotiations on this pivotal mandate for the auto industry.

Automakers' fleets will now have to average 54.5 miles per gallon by 2025, according to people familiar with the plan. Chief executives at the major automakers could sign off on the plan as early as Wednesday night, one of the people said.

U.S. President Barack Obama will officially announce new guidelines on Friday, the White House said.

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