GM may resume development of a range of RWD large cars.The plans were put on hold last month following fears that the Bush administration would raise corporate average fuel economy (CAFE) standards.To raise was by 4% a year on the original proposal. So fleets would have to average 34mpg by 2017 – 30% higher than today’s levels.

Bob Lutz, GM Vice Chairman has revealed that development will resume, even the cars will have to feature more fuel-efficient engine options. “I think we’ll wind up concluding that we should go ahead and do the cars, albeit possibly with some different powertrain options and so forth.” Lutz sais.The engines will have to be smaller and more efficient, possible hybrid and diesel versions.The changes will effect the next generation versions of the Chevrolet Impala, Pontiac GTO as well as several new Cadillac models.