UPDATED: Fed's Proposed 54.5 MPG CAFE Requirements for 2017-2025 Released
November 16, 2011 4:30 PM
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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
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.
The Detroit News
This article is over a month old, voting and posting comments is disabled
11/17/2011 7:55:35 AM
I just can't wait for how the Democrats are going to say we need a $10-15 minimum wage then because "poor people can't afford new cars anymore". Well guess who's fault it is that they can't afford new cars?! They claim $6000 in gas savings OVER THE LIFE OF THE VEHICLE. All this will do is continue to ruin car sales and make people hold onto their old cars longer. Not that thats necessarily a bad thing. But the only problem is that too many people don't take care of their cars.
At a GTO get together last night, one of the guys manages a Firestone store and showed us a picture of a brake rotor(well, what was left of one) on a Ford Explorer. There was literally almost nothing left other than the hub. There was about a 1/4 inch of jagged metal that wasn't even enough for the entire pad to sit on. I literally don't know how the car stopped. But that guy is out on the highway. He was in there for two new tires because he literally drove the other ones until they blew out.
Dr of crap
Dr of crap
11/17/2011 8:59:16 AM
Then the govt will fix the loan process so EVERYONE will get approved to get a car loan.
ANd there you have the next credit bubble in the future!
Funny how those elected officals can't see the forest for the trees. But then again they don't go out and shop for their food or clothes, so the real things that you and I go through is so foreign to them - out of touch!
"It seems as though my state-funded math degree has failed me. Let the lashings commence." -- DailyTech Editor-in-Chief Kristopher Kubicki
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