Monday, August 1, 2011

Obama Announces New Fuel Economy Standards

Last week, President Obama announced the next phase in the Administration’s program to increase fuel efficiency and reduce greenhouse gas pollution for all new cars and trucks sold in the U.S. These new fuel economy standards will cover cars and light trucks for Model Years 2017-2025, requiring performance equivalent to 54.5 mpg in 2025 while reducing greenhouse gas emissions to 163 grams per mile.

Brilliant graphic to promote the deal
While these are pretty steep increases from today and from the coming standards in 2015, there are many compromises that mean it's unlikely car buyers will see many fuel-economy stickers boasting such high mileage.

Instead, the average new vehicle in 2025 will probably be closer to 43 mpg, based on the typical 20 percent discount from federal officials when rating a vehicle in real-world driving conditions, reports Bill Vlasic.

The system of credits has been devised to encourage new technology and better penetration of current fuel-saving equipment into the market.

Sales of vehicles that run on electric batteries or fuel cells, for example, will be given more weight in the fleet average than gas-powered vehicles, even those with efficient engines.

What do you think of the new rules?

1 comment:

  1. One concern is that auto makers will produce much lighter cars in order to meet the CAFE regulations. Lighter cars are great for mpg but not so great in case of an accident.

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