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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 dubyadubya on 12/19/2011 3:20:42 PM , Rating: 2
Raising the price of fuel is a very bad idea. Doing so would raise the price of all products and services we buy. Reason being the United States is too vast. Everything we buy has transportation costs. Europe will nearly fit in the state of Texas so their transportation costs are much lower. Just look how much prices went up in the US as a result of the increased cost of fuel over the last few years. Raising the price of fuel will cost the American public way more than the added cost of the fuel. Add to this the state of the economy if anything we should be doing everything possible to lower the cost of fuel not raise it.

Bill


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