Bush Punts

Bush is going to let the Obama administration set new auto standards.

WASHINGTON (Reuters) - The Bush administration will not finalize new auto fuel efficiency standards, as it had planned, due to historic uncertainty gripping U.S. manufacturers, officials said on Wednesday.

The Transportation Department had intended to complete the regulation laying out annual mileage targets from 2011-15 by year's end, but will now hand the matter over to the incoming Obama administration.

"The recent financial difficulties of the automobile industry will require the next administration to conduct a thorough review of matters affecting the industry," the agency said in a statement.

The rule must be finalized by April 1 to allow automakers time to incorporate tougher mileage standards in their design plans, but uncertainty about industry prospects and other factors could alter the timetable.