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President Obama admires a Chevrolet Volt  (Source: Motor City Times)
Proposed standards are expected to be the same Washington and automakers agreed to last summer

The White House, California, and major automakers have came to an agreement on proposed economy standards that will see the requirements ultimately nearly double fleet wide fuel economy to 54.5 mpg by 2025.
People against the plan in the auto industry and Washington have argued that the 54.5 mpg goal will mean additional money added to the price of each vehicle and the loss of jobs in the auto industry due to reduced sales. Some estimates from Washington peg the cost to the automotive industry to meet the proposed standards at as much as $100 billion.
The proposed 54.5 mpg standard would save customers $6,600 in lifetime fuel costs for a 2025 model year vehicle. The Department of Transportation (DOT) and Environmental Protection Agency (EPA), however, rightly point out that the actual savings is closer to $4,400 when you take into account the additional cost of the technology needed (as reflected by the sticker price of the car) to make cars reach such lofty mileage numbers.
"These unprecedented standards are a remarkable leap forward in improving fuel efficiency. We expect this program will not only save consumers money, it will ensure automakers have the regulatory certainty they need to make key decisions that create jobs and invest in the future," said U.S. Transportation Secretary Ray LaHood. "We are pleased that we've been able to work with the auto industry, the states, and leaders in the environmental and labor communities to move toward even tougher standards for the second phase of the President's national program to improve fuel economy and reduce pollution."
"This is an important addition to the landmark clean cars program that President Obama initiated to establish fuel economy standards more than two years ago," added EPA Administrator Lisa P. Jackson. "The progress we made with the help of the auto industry, the environmental community, consumer groups and others will be expanded upon in the years to come -- benefitting the health, the environment and the economy for the American people."
A letter sent to President Obama this week from 100 House Democrats praised the new standards writing, "[The new efficiency standards] increase our national and economic security in an unprecedented way by dramatically decreasing our dependence on foreign sources of petroleum." 

The following are areas targeted for improving fuel efficiency across the board:
  • More efficient gasoline engines
  • Greater availability of diesel engines for passenger cars
  • Advanced transmissions
  • Improvements in vehicle aerodynamics
  • Reduced vehicle weight thanks to the use of aluminum and composites
  • Low rolling resistance tires
  • Improved air conditioning systems
  • More efficient vehicle accessories
The rules offered up today are not final; there is still a period for the industry and consumers to make comment on the rules. Administration official in Washington said recently that cars would have to average 62 mpg and light trucks 44 mpg to meet the economy standards of 54.5 mpg by 2025. The EPA estimates that real world driving would see 39 mpg.
Some in Washington have already argued that the new fuel economy proposal will legislate out of existence the cars on the market today selling for under $15,000. Obama and his administration still claim that the new standards will save consumers $1.7 trillion in fuel over the life of the vehicles on the road. That figure is contested and some fear that automakers will be forced to build vehicles consumers aren't interested in to meet the economy standards.

Updated 11/16/2011 @ 4:30pm to reflect official announcement and add quotes.

Sources: The Detroit News,

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RE: Spin
By Spuke on 11/16/2011 6:07:56 PM , Rating: 2
If the cost to meet the new CAFE standards is that much higher beyond 50MPG, then it is a given that the cost per vehicle will end up being more like $10,000 more per vehicle.
That's just staggering but most likely accurate. And figure in a bit more than that so the automakers can add options to "justify" the higher pricing to consumers. Cause no one will remember that the new CAFE standards are the cause. Like I said before, the cheap car no longer exists.

RE: Spin
By Targon on 11/16/2011 9:33:17 PM , Rating: 2
To be fair though, what you get for your money NOW has finally caught up to where these same features would have cost ten years ago.

Think about it, LCD screens rather than dashboard warning indicators that don't tell you what you have, dual-zone climate controls, features like anti-lock breaks and traction control are standard in many cars in the $16,000-$18,000 range, not to mention all the airbags and such that we have today.

So, ten years ago, for all of that, you might have paid $21,000(expensive compared to cars without all those features), but we are now at the point where we are paying that much, but considering inflation, the fact that we have them in that price range is actually pretty good. I remember when an on-board computer was a luxury item, and now that is standard.

I just hope that the $30,000 cars we see in 2020 will have all the features you see in a $30,000 car that is sold today.

RE: Spin
By Spuke on 11/17/2011 12:09:04 AM , Rating: 2
I remember when an on-board computer was a luxury item, and now that is standard.
That stuff wasn't added for free, cars are MORE expensive. Like I said, automakers will add features to help "justify" the price increases. Usually price increases have been somewhat hidden by cost of living increases so we don't notice. But since a good chunk of the next 14 years will be in a recession, I doubt those increases will go unnoticed this time. Regardless, there are people now that can't afford that $33,000 average car price now that COULD afford that average $21,000 price in 2001. BTW, inflation between now and 2001 hasn't been all that much.

RE: Spin
By YashBudini on 11/19/2011 7:17:57 PM , Rating: 2
That's just staggering but most likely accurate.

Also worth considering - at 274,000 miles the cost of fuel over 16 years has exceeded the cost of the vehicle I drive.

I have a 4 speed automatic trans. A 5 speed would have probably more than paid for itself, perhaps even several times over.

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