Ceres commissioned an economic analysis of higher fuel economy standards. Conducted by Citi Investment Research and Management Information Services, Inc., the study included the following conclusions:
- An estimated 700,000 new jobs would be created by 2030 under a 60-mpg standard.
- With only a 42 mpg standard by 2020, industry variable profits would rise by $9.1 billion, with $5.1 billion going to the Detroit three.
- U.S.-based suppliers of fuel-saving tech like dual-clutch transmissions, direct ignition, and turbochargers will benefit.
Photos Copyright 2010 Zach Bowman / AOL
Ceres Takes to the Airwaves with Message that Stronger Vehicle Standards will Fuel Investment, New Jobs
Launches Ad Campaign
BOSTON, July 22, 2011 /PRNewswire/ -- Ceres, a national coalition of leading institutional investors and environmental groups, launched an ad campaign today promoting the economic benefits of higher fuel efficiency standards, citing recent expert research and polling. The ad campaign, which begins with radio spots in Washington, DC and Michigan, is in response to news that the Alliance of Automobile Manufacturers (AAM) had launched a radio ad campaign claiming adverse economic impacts from strong CAFE standards.
"The facts are clear, a 60 mpg standard will restore American automakers to a place of global leadership," said Ceres President Mindy Lubber. "Higher standards will create new jobs by encouraging automakers to build more of the fuel efficient cars and trucks that drivers want to buy."
The Ceres radio spots are part of a multiplatform campaign that includes radio, print and online social media advertising in heartland states and the nation's capital.
"American's overwhelming support for higher fuel efficiency standards matches what is technologically feasible," added John DeCicco, a faculty fellow at the University of Michigan's Energy Institute. His report, "A Fuel Efficiency Horizon for US Automobiles," shows how optimal use of available and affordable technologies can push new fleet efficiency as high as 74 mpg assuming adequate lead time.
Recent economic analysis done for Ceres by Citi Investment Research and Management Information Services, Inc. shows:
700,000 jobs will be created economy wide in 2030, with 60,000 jobs the auto industry, under a 60 mpg standard.(1)
Increasing industry average fuel economy to 42 miles per gallon by 2020 could raise industry variable profit by $9.1 billion, or 8 percent. Most of the added profit, $5.1 billion, could go to the Detroit 3.
Stronger mileage and greenhouse gas (GHG) emission standards will boost variable profits and sales in 2020 for the auto industry worldwide, with the Detroit 3 seeing the biggest financial benefits. The Detroit 3's variable profit gains would garner more than half of all increased profits.
US-based suppliers of key fuel-saving technologies – from turbochargers to direct injection, dual-clutch transmissions and more - will benefit.
The U.S. electric vehicle industry is already robust and viable, and will grow further under strong standards and other government policies that will boost demand for electric and plug-in-electric cars.
Recent polling commissioned by Ceres of likely Michigan and Ohio voters shows:
80% of likely Ohio voters and 76% of likely Michigan voters believe a national 60 mpg standard will encourage American car makers to innovate, boosting sales and protecting American auto jobs.
In Michigan and Ohio – the heart of the American auto industry – likely voters overwhelmingly support the 60 mpg fuel efficiency standard.
78% of likely Michigan voters and 79% of likely Ohio voters say they support 60 mpg.
68% of likely voters in Michigan auto industry households and 72% of likely voters in Michigan manufacturing households support 60 mpg.
84% of likely voters in Ohio auto industry households and 74% of likely voters in Ohio manufacturing households support 60 mpg.