• Nov 17th 2011 at 2:00AM
  • 489
The 54.5 mpg CAFE standard has been divisive even as it... The 54.5 mpg CAFE standard has been divisive even as it becomes more concrete (Flickr: Matthew Oliphant)

This week the Obama Administration delineated its plan for the new 54.5 mpg fleet fuel economy standard by 2025, and though automotive industry professionals widely rejoiced, those who claim highway deaths will increase as a result spoke out against the measure.

If the rule is implemented, cars in 2025 will go twice as far on a gallon of gas as they do today. Of course, some of that calculation is based on the fact that more cars won't be running on gasoline at all. An influx of electric and natural gas fueled cars will be off-setting vehicles that will still be running on gas. And cars running on gas today will be getting more and more fuel efficient as automakers make better, higher performing three and four cylinder engines and create lighter-weight vehicles.

The aim, of course, is to spew less carbon dioxide into to the atmosphere, and to become less dependent on foreign oil and fossil fuels in general.

The advocates

Auto-dealers, who have struggled in a down economy to sell low-mpg cars, rejoiced.

"As a third-generation auto dealer, all I can say is-It's about time!" said Adam Lee, Chairman of Lee Auto Malls in Portland, Maine.

Low fuel-economy cars have become the bane of an auto-dealer's existence.

"In 2008, when gas prices skyrocketed to historic highs, I couldn't give away some of the gas-guzzling vehicles on my lots," Lee said. He said this standard will help the industry avoid that "gut punch."

The auto industry is now in lock-step with what consumers demand.

Of course the geo-political angle of weaning America off oil is part and parcel of the standards. "Gas-guzzling is not an American value," said Vice Admiral Dennis McGinn, a member of the CNA Military Advisory Board, a panel of top retired admirals and generals.

"Cutting our oil use, increasing efficiency and diversifying our energy resources will protect our economy and our ability to move around the country freely."

"Delivering much cleaner, more-efficient cars to the market can guarantee the best possible outcome for American workers, our communities, the economy, and the environment," said David Foster, the executive director of the BlueGreen Alliance.

If implemented in the right fashion, the CAFE (Corporate Average Fuel Economy) standards plan could create as many as 190,000 jobs through 2020 and save some 12 billion barrels of oil--the equivalent of the fuel to power about four years of light vehicles, according to the BlueGreen Alliance.

The detractors

But not everyone is enthused by the fuel economy hikes.

Yesterday in response to the announcement, The National Automobile Dealers Association (NADA) vented its concerns that this measure could price more Americans out of car purchases.

"We 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," NADA said in its statement. "We need fuel economy policies that encourage the sales of fuel efficient vehicles, instead of risky mandates that frustrate consumer demand."

Congressman Darrell Issa (R-CA) also issued a statement for similar cost-to-consumer reasons and cited White House estimations that this rule would cost $157 billion to bring to fruition. He also saw this implementation as heavy-handed.

"Beyond jobs that would be lost as a result of this rule, there are concerns that these new regulations were crafted in a manner inconsistent with laws and basic standards of transparency that had the effect of hiding special interest agendas," Issa said.

Some opponents to the 54.5 mpg CAFE standard have more aggressive dislike for small cars they view as unsafe.

"In a free society, government shouldn't force families of four to travel in the equivalent of hybrid Yugos merely to reduce consumption of an abundant commodity such as oil," said James M. Taylor, Senior Fellow, Environment Policy at The Heartland Institute. "If the federal government is worried about oil supply, it should take the shackles off domestic oil production...rather than dramatically raising the production costs of standard-sized vehicles or forcing Americans into unsafe clown cars."

The consumers

While they may not be advocates or detractors just yet, consumers are the ones that stand to be affected the most by the standards. Mark Cooper, Research Director at the Consumer Federation of America, says this is a big win for them.

Though adding more to the cost of the vehicle at purchase, Cooper says the fuel economy standard will end up being cash flow positive after 2 or 3 years, factoring in the savings in fuel costs consumers will experience over the life of the vehicle.

"People spend an average of $2,900 per year on gas," Cooper told AOL Autos. "Higher MPG vehicles will allow people to budget much more easily, as they won't be paying for gas nearly as much."

Big fluctuations in gas prices are very bad for the economy as a whole, he said. When people have to forfeit a larger percentage of their take home income to gasoline purchases, they are less inclined to go out and spend elsewhere, hurting all kinds of other business, from restaurants and coffee shops to sports teams and shopping malls.

The standard will also make fuel efficient cars more visible and readily available, which the current system does not do.

"When people go to the car dealer, they just buy what's there, and often what's there are big, gas guzzling vehicles," Cooper said. "They aren't aware that they have other [fuel-efficient] options because often they are desperate for a car and the salesman wants to make a sale right then."

This translates into a higher cost of ownership in the long term and can severely impact their personal or household budget. The new mandate, he said, will mean many more fuel efficient cars on dealer lots and, thus, many more in consumers' garages.

AOL Autos Correspondent Michael Zak contributed to this report.



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  • 489 Comments
      fritobandav
      • 3 Years Ago
      eat more beans
      goatcars2
      • 3 Years Ago
      Obama Motors rolls on...Have you checked the price of GM stock since their IPO???? GM stiffed their bondholders, stockholders and creditors. Then got 50 Billion to start over and STILL can't turn a profit!!!!!!!!!!!!!!!!!!!!! PATHETIC GOVERNMENT INTERVENTION!!!!!
      ibebigbill
      • 3 Years Ago
      All these econo boxes fail to take into account one other very important factor. Not everybody can squeeze into these sardine cans on wheels. I am not even talking about being big, although that does play a role as well. there are a few tall people in the world. Trying to cram a 6'5" frame into a vw rabbit or similar size car is like trying to squeeze a watermelon out of a hole as big as a lemon. not pretty . Not to mention all these econo boxes are not made for trying to get anything of size home from the store. or for that matter a monthly stock up at the grocery store for a family of 4.
      cpenrod
      • 3 Years Ago
      Obama is too dangerous to America to be permitted to complete even this term of office. Forget re-election. America would not survive. Impeach him now and try him for his treason.
      • 3 Years Ago
      Obama has spoken, he knows what is best for you. From healthcare to the car you drive, the dictator has spoken. Jeff said it best What a F*ckin ass Obama is
      joynerz
      • 3 Years Ago
      Auto manufacturers will only do what they are mandated to do. Profit is their only interest.
      • 3 Years Ago
      Darrel Issa is a major fool. This is LONG overdue, everybody knows it except the selfish few who continue to drive monster trucks that have never seen a speck of dirt. What a wasteful country and our cars are quickly becoming a sign of embarrassing excess.
      CHARLES
      • 3 Years Ago
      There goes Obama's 10 limos then, sorry O, you get a Toyota Prius like the rest of us
      drtdk3044
      • 3 Years Ago
      Do the people who issue these mandates drive small efficient autos? The President is in the epitome of gas guzzlers. All of Congress travels in the most fuel efficient manner? Yeah right!!!
      • 3 Years Ago
      Obama and his monkeys are just that monkeys – it is time to let these people no who is in charge. It is our right to drive what we would like to drive; if they are so concerned about what we are doing then maybe we should be drilling in the USA so we are not dependent on foreign oil. Just think about all of the jobs that would be made and oh yes the economy would do better when people are back to work because they are spending money. Oh wait a minute I don’t want to look at the real problem and how we can fix it I want to tell people what they are going to drive. This crap just gets better and better all of the time – it’s time to get OBAMA and his cart of MONKEYS out of office. Really haven’t you done enough!!!!!!
      minimaniac99
      • 3 Years Ago
      i just want to tell everyone that driving a HUGE gas guzzling pig of a car or SUV does not make your penis any bigger. Ladies driving around in that HUGE SUV does not make you grow a penis. Grow up and get your fat butts in a smaller car and if you don't fit into it walk you could probably use the exercise.
      nanq5128
      • 3 Years Ago
      It will be a cold day in h*** before 'THE ONE' will dictate to me what I can drive!!!
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