Print 33 comment(s) - last by tastyratz.. on Jul 29 at 10:51 AM

Support announcements could be made today

The deliberations between Washington and the automotive industry have been fierce when it comes to agreeing on the new CAFE standards for automobiles. The automotive industry still maintains that he cost to implement the tech to reach the CAFE standards proposed by 2025 will cut sales and cost jobs in the automotive market.

However, it looks like Washington and Detroit are near to making a deal, as five of the top automotive manufacturers (Chrysler, GM, Ford, Honda, and Hyundai) are ready to back a slightly reduced fuel economy standard by 2025. The original CAFE proposal had the fleet wide fuel economy average at 56 MPG by 2025 and the new reduced standards are 54.5 MPG.

However, the new plan also has other stipulations. Earlier this week DailyTech reported that Detroit was looking for reduced standards for light truck and work trucks. Washington is willing to deal according to the Detroit News. The new plan will see the fuel efficiency on light truck going up 3.5% annually from 2017 to 2012 -- in 2022-2025, the economy standards will go up by 5% anually.

There is also a plan to make special rules for work trucks as was requested by Detroit. An official in the Obama administration said, "We are encouraged by the strong, positive feedback we are receiving from many companies and look forward to wrapping up the discussions in the near future."

Announcements of support for the new plan could come as early as today reports The Detroit News. There hasn’t been word from the environmentalist camp in California that was strongly supporting higher CAFE standards. If California isn't happy, they still have the power to set their own standards within the state.

Transportation Secretary Ray LaHood said, "This is not easy, but the companies are being very cooperative. Frankly, everyone is working 24-7. These deliberations are going on somewhere between 12 and 18 hours every day for the last several days … I think we will get there."

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RE: I don't get it
By tastyratz on 7/27/2011 4:18:30 PM , Rating: 2
It's only money, right Brandon?

New standards and old standards, they are both tighter than reasonable expectations. As a business the costs get passed on to the consumer and unreasonable expectations are going to result in serious compromise. You can not legislate engineering and physics out.

I for one do not look forward to the out of reach crappy bland anemic new car, it's pricing in the future, as well as the cost of heating oil, transportation, and other petroleum based production items as time progresses.

Speculators will cause oil costs to continue to rise and find it easier to do so as consumers now purchase less oil they can afford to pay more per gallon.

15 years is a very long time and results should be had, but this seems steep to project. Look at averages over the LAST 15 years and even look for cars now that get 54.5mpg - they are few and far between and we are not holding them to peaks, they are to average.

RE: I don't get it
By dubldwn on 7/27/2011 4:32:38 PM , Rating: 3
and even look for cars now that get 54.5mpg - they are few and far between

Not taking sides but just so we're all on the same page 54.5 mpg CAFE is about 40 mpg EPA (combined) which is something like a Fusion Hybrid.

RE: I don't get it
By Reclaimer77 on 7/27/11, Rating: 0
RE: I don't get it
By tastyratz on 7/29/2011 10:51:18 AM , Rating: 2
I am glad you posted that because I was unaware we were talking different numbers. I did some reading and now I am far less alarmed at the drastic changes, although that will be a milestone for fleet averages still none the less

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