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Could the proposed standards lead to automakers vacating smaller platforms?

The proposed CAFE standards that have been looming all year will force some major changes on the automotive market. The government says that the much more stringent fuel economy standard will save consumers at the pump and reduce the national need for foreign oil. The auto industry has said that the cost of meeting the standard would increase the cost of new vehicles and could result in lost jobs.
 
According to a new study published by the University of Michigan, the CAFE standards will make cars larger, not smaller. The study indicates that there is a loophole in the economy standards that the automakers could exploit.
 
"For just about all the scenarios, the car got bigger,” said Steven Skerlos, an associate professor at U-M Department of Mechanical Engineering. “What you can model in a computer is different from reality, but based on this research we expect it to happen."
 
The loophole is that the formula used for determining miles per gallons required under the new standard uses the vehicles footprint (multiplying the wheelbase by track width). This was done to give larger vehicles less stringent economy standards to follow. In a nutshell, the formula favors larger vehicles and those vehicles may be less costly since they wouldn't have to use as much technology for fuel gains. 
 
Therefore, automakers may design new vehicles to be larger in an effort to target the lower economy standards. The study also claims that not only would the automakers considering redesigning a vehicle to go for the lower economy limits undermine the CAFE standard goals, but it would also create more pollution
 
"This study illustrates that there may be a substantial financial incentive to produce larger vehicles, and that it can undermine the goals of the policy," said Kate Whitefoot, who conducted the research as a U-M design science doctoral student and is now a senior program officer at the National Academy of Engineering.

Source: AutoNews



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RE: Cafe standards
By lightfoot on 12/15/2011 4:49:48 PM , Rating: 2
quote:
my company is hugely affected by fuel prices. a 25 cent increase equates to around 2 million dollars a day.


So you're saying that your company burns 8 million gallons of fuel per day? That is two thirds of what the Department of Defense spends. That is outragous by any measure.

Heaven forbid that you have to pass that extra expense onto your customers or *gasp* increase the efficiency of your fleet.

Your company seems to be a prime target for fuel useage reductions.

Give me one reason why your company specifically should not reduce fuel consumption, but everyone else should.

Don't get me wrong, I am not in favor of a fuel tax. But it's a MUCH better solution to fuel consumption than the existing CAFE regulations.


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