Corporate Average Fuel Economy | TheDetroitBureau.com
Detroit Bureau on Twitter

Posts Tagged ‘Corporate Average Fuel Economy’

Keeping Current CAFE Standards Saves Owners Big Cash

New study shows car owners save thousands.

by on Sep.08, 2016

A new study shows that keeping the current CAFE standards for 2022-2025 will save car owners more than $3,000.

A new report from Consumers Union, the publishers of Consumer Reports, said retaining the current corporate average fuel economy, or CAFE, standards paves the way for buyers of 2025 model cars and trucks to save thousands of dollars during the life of their vehicle even if fuel prices hold steady.

Vehicle owners will average net savings total approximately $3,200 per car and $4,800 per truck, if the current standards for 2022-2025 remain in place, according to the study. If gas prices rise from today’s historically low levels, the savings would rise to $5,700 per car and $8,200 per truck, the study said.

News Now!

Shannon Baker-Branstetter, Energy Policy counsel for Consumers Union, which has long been a proponent of CAFE standards, said retaining the standards will help save consumers not only money on operating costs, but also protect consumers against future price shocks. (more…)

Carmakers Want Relief from Tough 2025 Mileage Mandate

Feds set to issue mid-term review of 54.5 mpg target.

by on Jul.05, 2016

Cheap gas makes it harder to justify spending money to improve mileage, CAFE critics contend.

With fuel prices the lowest they’ve been since the start of the Great Recession, automakers have seen a boom in demand for light trucks and performance vehicles. But while that might be good for the short-term bottom line, it could pose serious problems in the longer-term, as the industry struggles to cope with tough new fuel economy mandates.

Automakers have delivered significant improvements in fuel economy in recent years, but they’ve got a long way to go to meet the 54.5 mile-per-gallon target the federal government has set for 2025. Some industry insiders argue they can’t get there – at least not without pricing vehicles out of the hands of most consumers. The environmental community has countered that this is just a scare tactic and that manufacturers have shown they can deliver fuel-efficient products consumers can afford.

Green News Now!

Both sides will have their eyes on Washington this week, the federal government finally expected to release a so-called mid-term review that could decide whether to ease back on the 54.5 mpg target if the goal is determined to be unreasonable.

(more…)

New Vehicles Getting Less than 20 MPG on Decline

One in four new vehicles average less than 20 mpg in 2014.

by on Feb.27, 2015

Small cars, like the Chevy Sonic, have helped to push the average fuel economy of vehicles to new heights.

As automakers and the federal government head toward a potential clash over the 54.5 mpg corporate average fuel economy mandate for 2025, a recent study shows that automakers are making substantive gains in fuel economy: about one in four new vehicles get less than 20 mpg.

That’s a significant uptick in just six years, according to the University of Michigan, which show that in 2008, half of new-car buyers in the U.S. bought vehicles that were rated at less than 20 mpg.

Stay Informed!

The shift is a reflection of several factors that helped push the industry into building and American consumers into buying more fuel-efficient vehicles. The rising price of gasoline, which jumped in wake of a series of hurricanes in fall of 2005, beginning with Hurricane Katrina that swept through the Gulf of Mexico and disrupted the production of gasoline and diesel fuel, set helped renew interest in fuel economy. (more…)

Toyota “Staying the Course” Towards 54.5 MPG CAFE Target

“Eventually,” says auto chief Carter, $4 gas “will come back.”

by on Jan.14, 2015

Toyota's Bob Carter said Americans need to be prepared for a return to $4 gas in the future.

Enjoy cheap gas while you can, says Bob Carter, the head of U.S. automotive operations for Toyota. Like all good things, it “eventually” will come to an end.

The collapse of gas prices was the talk of the North American International Auto Show during this week’s media previews, and senior industry officials universally said that this unexpected shift has both its benefits and challenges.

On Top of the News!

Consumers have more money to spend, but they’re also asking for the sort of big, powerful vehicles that could make it difficult to meet the upcoming, 54.5-mile per gallon Corporate Average Fuel Economy, or CAFE, standards that will take effect in 2025. (more…)

Ford Wants “Robust” Review of Fuel Economy Rules

Cheap fuel causing shift in consumer demand, warns Ford CEO Fields.

by on Dec.11, 2014

Ford CEO Fields is looking forward to a "robust" debate over the 54.5 mpg CAFE standard.

With gas prices plunging to a national average of barely $2.60 a gallon, there’s been a an equally sharp shift in the U.S. new car market, with dealers struggling to keep up with demand for pickups, SUVs and muscle cars.

Small cars, as well as battery-electric vehicles and other high-mileage models, have been piling up on showroom lots, however, and that’s worrying automakers who fear the shift will make it difficult to meet the tough new Corporate Average Fuel Economy standard set to take effect in 2025. And Ford Motor Co., for one may seek to have the CAFE mandate rolled back or revised, the maker’s CEO said Thursday.

http://www.thedetroitbureau.com/about/subscribe

Fuel for Thought!

While insisting the company is “dedicated to meeting” the 54.5 mile per gallon target, Fields said he is also looking forward to 2017 when the feasibility of the standard will come up during a meeting between industry officials and federal regulators.

(more…)

New Car Buyers Pushing for Better Fuel Economy

Report shows federal mandate, consumer demand drives improvement.

by on Jun.23, 2014

Trucks are hot sellers these days, in some measure because they are getting better gas mileage than ever.

With new cars and trucks getting better gas mileage than ever and new vehicle sales hitting record highs, it’s no surprise that consumers expect their new purchases to continue to be more fuel efficient.

The Consumer Federation of America (CFA) released the results of its annual report today, which found that new vehicles are not only more economical, but also consumers are in favor of the fuel-efficiency rules helping to usher these vehicles to the market.

Your Automotive Source!

“Consumers want and expect the vehicles they intend to purchase to get significantly higher fuel economy,” said Mark Cooper, CFA’s director of research. “Many Americans struggle to live within their budgets, and a large majority are troubled about future gasoline prices.” (more…)

Three in Four Motorists Ready to “Consider” Alt-Fuel Vehicles

New study confirms fuel economy now the most important factor for U.S. car buyers.

by on May.22, 2012

Motorists say they're very open to alternative powertrain technology. Will that bode well for the new Toyota RAV4-EV?

This year’s near-record run-up in fuel prices has clearly had an impact on the choices American motorists are making when it’s time to buy a new vehicle – in fact, three in four U.S. drivers now say they’re ready to consider an alternative-fuel vehicle, according to a new study.

While many motorists still aren’t ready to trade in their roomy SUVs for high-mileage subcompacts — at least if recent sales are considered — there’s little doubt that there are significant changes underway in the American car market, with fuel economy now a much more important factor than vehicle quality or safety, according to research by the non-profit Consumer Reports.

The Full Story!

“These results make it clear that high fuel prices are continuing to impact driver behavior and influencing future purchase considerations,” said Jeff Bartlett, Consumer Reports deputy auto editor. “While quality, safety and value are still important, this may be foreshadowing a market shift by folks seeking relief at the pump.”

(more…)

Reports Says Obama’s Fuel Economy Increase to Save $69 bil Annually

NRDC notes surge in high-mileage models already on the road.

by on Apr.20, 2012

With its high-mileage EcoBoost engine, a new study says the 2012 Ford Explorer is already savings owners $1000s on gas.

The recently-enacted 54.5 mile per gallon fuel economy standards will save American motorists an estimated $69 billion annually, according to a new report that suggests the Obama Administration’s push for improved fuel economy is already saving many drivers thousands of dollars.

With a big jump in fuel economy scheduled for 2016 and another by 2025, the Natural Resources Defense Council, or NRDC, stressed that the auto industry is already rolling out a substantial number of new, higher-mileage products that are not only saving consumers money but reducing dependence upon foreign oil.

The report, titled, “Relieving Pain at the Pump: Thanks to Stronger Standards, Consumers Have More Fuel-Efficient Choices”, noted that the number of subcompact cars sold in the U.S. market getting at least 30 mpg has tripled since 2009, to 15.

Your Source!

The number of midsize models rated 25 mpg jumped from just six in 2009 to 10 during the 2012 model-year.  Meanwhile, the count of crossovers getting at least 20 mpg, meanwhile, has doubled, to 32.  And the report stresses that fuel economy is rising rapidly across the automotive market.

“Drivers today have twice the fuel-efficient car options than just three years ago,” said Luke Tonachel, senior vehicles analyst at the Natural Resources Defense Council. “The technology — and fuel savings — are only going to improve thanks to even stronger efficiency standards.”

(more…)

“No Silver Bullet” to Solve Gas Crisis, Says Obama

But new, high-mileage vehicles will help, insists president.

by on Mar.05, 2012

The President checks out a Chevrolet Volt at this year's Washington Auto Show.

There’s “no silver bullet” for bringing down fuel prices that have now topped $4 a gallon in some parts of the country, warned Pres. Barack Obama during his weekly radio address – though he insisted that the new, higher-mileage models being built by a resurgent U.S. auto industry will ultimately save consumers money at the pump.

While signs of an improving economy may be playing to the President’s advantage in recent weeks, political observers warn that fuel prices could be a critical factor in determining the outcome of the 2012 election – especially if, as some now forecast, gas hits $5 a gallon.

Tackling the News!

Obama’s GOP opponents have already picked up the cry.  Before dropping out of the presidential race last year, Cong. Michelle Bachmann insisted she’d bring gas prices down to $2 a gallon if elected.  Former House Speaker Newt Gingrich has made a similar claim in recent weeks – though, like Bachmann, he hasn’t discussed how.

Nonetheless, it is clear the Administration is concerned about the gas price issue – especially as it is facing the possibility that the cost of petroleum could surge if the war of words with Iran over that country’s nuclear program turns into a shooting war.

(more…)

Typical Car Got 0.5 MPG Better Mileage in 2011

Hyundai led industry, among major makers, at 26.6 mpg, says new study.

by on Jan.13, 2012

Hyundai led the industry, at least among major manufacturers, when it came to fuel economy in 2011.

The fuel economy of the average vehicle sold in the U.S. last year increased by a half mile per gallon over 2010 – in the process savings American motorists a collective 214 million gallons – or $722 million at the pump — according to new research.

The typical vehicle got 22.2 miles per gallon, reported data tracking service TrueCar.com, up from 21.7 mpg in 2010.

But there was a wide disparity among manufacturers.  Chrysler, which is heavily dependent on vehicles like the big Ram pickup and Jeep Grand Cherokee SUV, averaged just 19.9 mpg a 0.2 mpg increase year-over-year.  Korean carmaker Hyundai, which sells several crossover/utes but no truck models, averaged 26.6 mpg, a 1.3 mile per gallon gain.

The Final Word!

Hyundai has been heavily promoting the mileage of its vehicles, four different models now rated by the EPA at over 40 mpg, and that “is right up there with design and with improvements in driving dynamics for boosting our sales,” said Hyundai Motor America CEO John Krafcik, referring to the 20% jump in demand the company reported in 2011.

(more…)