US proposes to double car fuel economy standard
Thu 17 November 2011
View all news
The US Government is proposing to double fuel efficiency standards to 54.5 miles per gallon by 2025 and has the support of both environmental groups and the auto industry, though the latter estimates the changes will cost it $157m and add $2,000 to the price of each new vehicle sold by 2025. The US Highways Agency says that benefits of the move will outweigh costs with savings of up to $515 billion in fuel savings.
The Obama administration said the improved standards would have tangible benefits, saving consumers more than $1,700bn at the pump, or more than $8,000 per vehicle, by 2025.
Under the proposals, car makers would have five years to develop fuel-saving technologies before the new standards started to take effect in 2017. The plan is now open for consultation for a two month period.
Under current standards, car makers must raise efficiency from 27mpg now to 35.4mpg by 2016.
Mitch Bainwol, chief executive of the Alliance of Automobile Manufacturers trade group (reported by the Financial Times) said: “The proposed regulations present aggressive targets, and the administration must consider that technology breakthroughs will be required and consumers will need to buy our most energy-efficient technologies in very large numbers to meet the goals.” Nevertheless, companies including General Motors and Ford have supported the deal.
The US still has some of the world’s lowest mileage and vehicle emissions standards. Under the regulations in Europe, car makers are expected to achieve fuel efficiency of around 60mpg within nine years.
Related Links
< Back to news list