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Obama Administration Calls for Doubling Fuel Efficiency to 54.5 MPG by 2025

Auto industry would get five years to work on fuel-saving technologies before the new rule would take effect in 2017.

The Obama administration on Wednesday proposed doubling auto fuel efficiency to 54.5 miles per gallon by 2025, according to a Reuters story in HuffPost Detroit.

Regulators hope to complete the proposal by summer following a 60-day public comment period, according to the story. The administration would give the industry five years to continue to develop fuel-saving technologies and products before the new rule would start in 2017.

“The Obama Administration is to be commended for working with auto manufacturers, labor, consumer groups, and environmentalists to protect American jobs while also increasing fuel economy and reducing greenhouse gas emissions," said U. S. Rep John Dingell (D-Dearborn) in a statement about the new standards. "The national program allows American manufacturers to continue building the cars consumers want to buy, it gives industry the certainty they need to invest in the future and promotes American manufacturing of advanced technology vehicles. This program is critically important so our manufacturers do not have to meet a patchwork of different standards."

The National Automobile Dealers Association (NADA) criticized the proposal, saying in a statement that they "are concerned that adding about $3,000 to the average cost of a car will price millions of Americans out of the market, which could reduce fleet turnover and delay environmental gains."

Current standards require automakers to raise efficiency from 27 mpg today to 35.4 mpg by 2016.

According to the Reuters story in HuffPost Detroit, targets beginning in 2017 would require a 5 percent annual fuel efficiency improvement for cars and yearly gains of 3.5 to 5 percent for light trucks, which include SUVs, pickups and vans.

Thirteen major automakers, including General Motors Co., Ford Motor Co., Fiat SpA affiliate Chrysler Group LLC, Toyota Motor Corp and Honda Motor Co. Ltd., have signed onto the fuel deal.

John Hetzler November 18, 2011 at 03:51 PM
What do you think? Will the tougher fuel efficiency standards help the environment? Or will the standards have an adverse affect on consumers and the economy?

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