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Higher CAFE standards could increase number of automotive jobs

While talk of increased CAFE requirements usually gets the automakers all riled up, a new report says there might be some good that comes from making the standards much stricter, and we're not just talking beneficial for the environment. This new report by the Union of Concerned Scientists says that higher fuel economy standards could create a quarter million new jobs by 2020. As many as 24,000 of those could be in the automotive sector.

UCS is one of the groups urging the government to raise fuel economy standards by 40-percent within ten years, so painting the change in a favorable light helps them promote their cause. The automakers, for their part, say it will have the opposite effect on their industry. They tend to see more layoffs and plant closings with those kinds of new requirements in place. The UCS report sees more of consumers' money being diverted from fuel bills to consumer goods. Rather than spending so much of our income on fuel, the study assumes we'd be spending our savings on new technology, shopping, home improvements, dining out, entertainment and similar purchases, which could arguably be called an improvement.

[Source: Automotive News, sub. req.]

Gov't forgot to change Gas Guzzler tax



Back in December, we told you about the new method the government would be using to calculate fuel mileage. For the first time in twenty years, they decided to make changes to better reflect real-world driving conditions and driver behaviors. The changes went into effect starting with 2008 model year cars, and are evident in the newly styled window stickers on those vehicles (shown above). We correctly surmised that most estimates would go down by some degree using this new formula. In our comments, many of you immediately noticed that this would unfairly bump some vehicles into the gas guzzler tax bracket. Apparently, you had reason to be concerned.

Revealed after some sleuthing by the boys at Dubspeed Driven, the EPA is still using the 1991 tax schedule and gas guzzler calculation method. That essentially means that the exact same car that skirted the gas guzzler surcharge last year, could be a scofflaw in 2008. Cars like a Nissan 350Z, for instance. It's combined 23.15 last year kept it out of the gas guzzler bracket, but under the new formula, it's a $1,300 offender at 21.15 mpg.

There's no mention anywhere on the EPA website about the new testing procedures or the fact that 2008 vehicles will likely be reporting lower mpg compared to 2007 Monroneys. Scared at the possible backlash when their vehicles appear to be getting poorer mileage, major carmakers have banded together to create a website to help educate consumers about the apparent drop in fuel economy, but nothing seems to be in place at the EPA to account for the change. Trucks, some sport utilities and minivans are all still exempt from gas guzzler tax, however.

[Source: Dubspeed Driven]

Bill proposed to raise fuel economy standards 4% a year through 2018

U.S. Representative Ed Markey, D-Mass., is introducing a bill today that will require automakers to raise their fuel economy standards by 4% a year starting in late 2009 for cars and late 2011 for trucks. The key word here is "require," as President Bush proposed a similar plan that was more of a really strong suggestion with a few loopholes than an actual law with penalties for not being followed.

On the brightside, Markey's plan is reportedly less severe than previous ones he's proposed, though it is estimated that raising fuel economy standards 4% a year will cost the auto industry a grand total of $114 billion between 2010 and 2017. U.S. automakers would likely shoulder about $85 billion of that expense. Markey's plan would even require that fuel economy standards continue to rise 4% a year in 2018 and beyond, that is, if it's technologically feasible. Talk about a big if.

The ultimate goal of Markey's plan would get fuel economy standards for automaker fleets to 35 mpg by 2018. In truth, that's a decade of time to add an additional 10 mpg to the current standard. It doesn't sound impossible, especially if vehicles like the GM Volt reach production and prove that hyper mileage cars can be sold alongside relative gas guzzlers to even out the MPG balance sheets. Unfortunately, that doesn't really account for gas guzzlers outselling high-mileage vehicles many times over.

[Source: The Detroit News]

Get ready for mileage to drop: new EPA rating system unveiled



For the first time in more than 20 years, the US Government is changing the way they calculate the estimated fuel mileage on window stickers. The changes will be seen starting with 2008 model year cars in the form of a newly styled window sticker and a new test procedure to better reflect the actual mileage customers can hope to achieve.

The test procedure is being changed for a lot of reasons, but mainly it's because the government has realized that people don't drive much like the computer model used in today's testing.

They are going to adjust the procedure to reflect our higher freeway speeds, the fact that people tend to accelerate much harder than the computer, our constant use of air conditioning and the effects of adverse-weather driving. We can only guess that most estimates will go down somewhat in this new formula. And we are not alone.

Scared at the possible backlash when their vehicles appear to be getting poorer mileage, major carmakers have banded together to create a website, www.mileagewillvary.com, to help educate consumers about the apparent drop in fuel economy.

Consumers tend to be pretty savvy and at times ignore the estimates altogether, so we expect most people will adapt pretty quickly. One area that may be a concern, however, is the CAFE requirements, which may or may not be altered to reflect the new measuring procedures.

[Source: Automotive News, sub req]


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