Autoblog

Report: Obama kicks off drive to enact tough fuel economy standards through 2025

Jonathon Ramsey — Mon, 24 May 2010 08:58:00 EST

A year ago, the White House led the effort to get automakers' Corporate Average Fuel Economy to 35.5 miles per gallon by 2016. Although the number was eventually pegged at 34.1 mpg, it will actually be slightly lower because of other non-automotive credits that will be applied. One might have thought automakers would still be grousing the work that needs to be done, but in fact they encouraged the federal government to go further, and so it has: the White House began working this week on setting CAFE standards through 2025.

The reason for this? The Golden State. Just after last year's 2016 CAFE numbers were announced, California said it would work on "a much more stringent standard" for 2017 and afterward. Automakers urged the feds to head the California Air Resources Board off at the pass in order to stay ahead of state initiatives, thereby quashing the chance that different laws would hit the books.

The EPA and DOT have just gotten to work on crafting new standards, so it will probably be another year before new numbers come out. For you folks with large-capacity, high-horsepower engines, you might want to take this chance to rev 'em if ya got 'em.

[Source: Detroit Free Press | Image: AFP/Getty]

Report: Obama kicks off drive to enact tough fuel economy standards through 2025 originally appeared on Autoblog on Mon, 24 May 2010 08:58:00 EST. Please see our terms for use of feeds.

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New Federal CAFE standards officially released, 34.1 mpg by 2016

Jeremy Korzeniewski — Thu, 01 Apr 2010 13:38:00 EST

Filed under: Hybrid, Government/Legal, Electric

We knew it was coming. Today, the National Highway Traffic Safety Administration and the Environmental Protection Agency jointly released new federal Corporate Average Fuel Economy (CAFE) fuel mileage and greenhouse gas emissions requirements that will cover the 2012 through 2016 model years. The estimated fleet-wide fuel economy standard has been set at 34.1 miles per gallon by 2016, though improvements in air conditioning systems will bring that number up to around 35 mpg. That equals a standard of roughly 250 grams of carbon dioxide per mile.

The overall fleet fuel mileage requirement will be an average between both passenger cars and light trucks, and NHTSA is predicting that the 2012 numbers will be 33.3 for cars and 25.4 for trucks in 2012, rising to 37.8 for cars and 28.8 for trucks by 2016. As before, credits will be dished out for vehicles that can run on E85 (ethanol), though automakers will need to prove their cars are running on the alcohol fuel by 2015 to continue earning those credits.

Smaller volume automakers that sold fewer that 400,000 cars in 2009 will get a break on the requirements while "specialty automakers" such as BMW and Porsche will reportedly get longer lead-in times. Automakers will also get some sort of incentive for the first 200,000 plug-in hybrids and electric vehicles built by 2016. These standards are said to be equivalent to taking 58 million cars off our nation's roads for a year, representing a savings of 1.8 billion barrels of oil.

Naturally, all of this is going to cost some extra dough. If the Feds are right, automakers will spend $51.5 billion over the next five years putting the standards into effect and the average price of a new car will rise by $985 by 2016. Savings, though, are expected to be even greater, with the average consumer will net an extra $3,000 in their wallets per in fuel savings over the life of the vehicle.

[Source: The Detroit News | Image: Tim Boyle/Getty]

New Federal CAFE standards officially released, 34.1 mpg by 2016 originally appeared on Autoblog on Thu, 01 Apr 2010 13:38:00 EST. Please see our terms for use of feeds.

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Report: Diesel and electric vehicles two of many options to meet CAFE regulations

Eric Loveday — Tue, 23 Mar 2010 09:01:00 EST

Filed under: Government/Legal, Technology, Electric, Diesel

2010 Volkswagen Golf - Click above for high-res image gallery

New CAFE standards set to take affect in 2015 have automakers in a hurried frenzy. Meeting target CAFE numbers of 35.5 miles per gallon within the short five-year time frame is no easy feat. Current standards, set at a fleet average of 27.5 mpg, will quickly become a thing of the past. As automakers push to meet the new requirements, decisions must be made. These decisions could best be regarded as risky bets that could impact an automakers success in the years ahead.

New rules within the CAFE guidelines will require many compact vehicles to achieve even higher numbers than the 35.5 mpg listed above. It's a bit technical, but put simply, the more compact vehicles a company sells, the higher its fleet average must be. This may sound simple, but compact cars may be hard to sell if the technology required to meet the goals adds a significant amount to the vehicle's bottom line.

Automakers are at a crossroads where they must decide which approach will prove to be most beneficial. Should the diesel engine be employed to meet CAFE requirements? Should hybrid powertrains be widely adopted? Automakers must answer these questions and many more. The wrong answer could spell disaster for market share and profits, and the Environmental Protection Agency estimates that new CAFE requirements will increase a vehicle's price by an average of $1,300. Others predict numbers far exceeding these claims, but no matter the numbers, cost is a major concern in the compact class of cars.

Here's a breakdown of some choices automakers should consider; improve gasoline engines to extract up to 20 percent more fuel efficiency, more widespread adoption of diesel engines, aerodynamically design vehicles for improved efficiency, add start/stop features, add more mild hybrids and consider weight saving measures or electrify vehicles. Each option has an associated risk versus cost versus reward factor that must be weighed out precisely for automotive success.

Gallery: 2010 Volkswagen Golf

[Source: Automotive News - Sub. Req.]

Report: Diesel and electric vehicles two of many options to meet CAFE regulations originally appeared on Autoblog on Tue, 23 Mar 2010 09:01:00 EST. Please see our terms for use of feeds.

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Detroit 2010: LaHood says Volt "obviously the kind of green car Americans are looking for"

Sebastian Blanco — Mon, 11 Jan 2010 10:03:00 EST

Filed under: Detroit Auto Show, Hybrid, Sedan, Government/Legal, Chevrolet, GM, Electric

The 2010 Detroit Auto Show kicked off this morning with a positive little speech by United States Secretary of Transportation Ray LaHood. Speaking about the coming electrification of the automobile, he said that "this is what the American people want." When asked how much money the government would pay over the next decade for a plug-in vehicle infrastructure, all he would say is that the costs would be shared between industry and government.

LaHood also praised the assistance that Obama gave to the domestic automakers, especially General Motors and Chrysler, calling it a lifeline that was very much needed. When LaHood visited Detroit last October, he spend half-days with each of the Big Three, and came away from GM with the impression that the Chevrolet "Volt is obviously the kind of green car Americans are looking for." So says the guy who works for the government that owns 60 percent of the company that will sell the Volt.

The new CAFE standards were a major achievement for the Obama Administration, especially since they came so early in the administration. LaHood said he doesn't expect any push back from the automakers on higher standards in the future, since they were present with Obama when he made the announcement and worked together on the details. That initial agreement also began what LaHood called a "special relationship" between the government and the auto industry, one that he promised would be "long lasting."

Follow our coverage of the 2010 Detroit Auto Show live all day on Twitter at http://twitter.com/therealautoblog

Detroit 2010: LaHood says Volt "obviously the kind of green car Americans are looking for" originally appeared on Autoblog on Mon, 11 Jan 2010 10:03:00 EST. Please see our terms for use of feeds.

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Obama: CAFE increase to unified national standard of 35.5 mpg by 2016

Sebastian Blanco — Tue, 19 May 2009 12:55:00 EST

Filed under: Government/Legal, Green

Aside from the Daimler-Tesla announcement earlier today, the big green car news for May 19 is the increase in CAFE standards that President Obama made just a short while ago, joined by Governors Jennifer Granholm (MI), Deval Patrick (MA) and Arnold Schwarzenegger (CA), members of Congress and Ron Gettelfinger (of the UAW), among others. Obama said the agreement was "an historic agreement to help America break its addiction to oil." Here are the details:

Currently, the DOT manages fuel economy, the EPA deals with emissions, and CA can use the Clean Air Act to come up with even more stringent rules. This could create a situation where car makers have to deal with rules from three agencies. The new rule is a national standard that CA will support and the DOT and EPA will both adopt.
The CAFE standard will increase by five percent each year, building on the 2011 standard, until we get to 2016. This means an Industry standard of 35.5 mpg by 2016, an average increase of eight mpg per vehicle.
Drivers will recoup the additional cost to buy one of these more-efficient vehicles in three years. Drivers will, over the life of the vehicle, save $2,800, on average, he said.
Obama said the new rule will save 1.8 billion barrels of oil over the next five years, and is the projected equivalent of taking 58 million vehicles off the road.
Despite previous disagreements between environmental and industry groups, the national policy has been agreed on and a series of "major lawsuits" will be dropped.

Yesterday, we heard that, much to the automakers' delight, the new CAFE standards create a national standard and incorporate California's strict emissions rules to raise the national fleet mpg average to 42 mpg for cars and 26 mpg for light trucks for an overall average of 35.5 mpg by 2016. Current CAFE standards require an automaker's fleet of cars to average 27.5 mpg and trucks must get 24 mpg.

[Source: Whitehouse.gov]

Obama: CAFE increase to unified national standard of 35.5 mpg by 2016 originally appeared on Autoblog on Tue, 19 May 2009 12:55:00 EST. Please see our terms for use of feeds.

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Group sues Obama administration over weak MPG standards

Sebastian Blanco — Wed, 08 Apr 2009 11:04:00 EST

Filed under: Government/Legal, Green

When the next step in the road to 35 mpg by 2020 CAFE standards was announced recently, those in the know made it clear that the Obama administration's upcoming goal of 27.3 mpg by 2011 would not be hard for automakers to meet. In fact, the 2007 average was already 31.3, so the 2011 goal would not require any change in product lineup (more difficult changes are scheduled to come into effect down the line). The 2011 standards were so light, in fact, that the Center for Biological Diversity took the National Highway Traffic Safety Administration and Department of Transportation to court last week, saying that the Obama administration's standards "ignore greenhouse gas emissions and the climate crisis, are illogical, illegal, and very disappointing from a president who has promised to make the United States a leader in the fight against global warming."

According to the San Francisco Chronicle, the Center filed suit in the Ninth U.S. Circuit Court of Appeals in San Francisco to push the 2011 standards to "the maximum feasible level, in light of current technology, economic impact, and the nation's need to conserve energy." Read the Center's press release after the jump.

[Source: Center for Biological Diversity, San Francisco Chronicle]

Continue reading Group sues Obama administration over weak MPG standards

Group sues Obama administration over weak MPG standards originally appeared on Autoblog on Wed, 08 Apr 2009 11:04:00 EST. Please see our terms for use of feeds.

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Ward's columnist wonders if Americans can handle the truth about gas taxes

Sam Abuelsamid — Sat, 27 Dec 2008 18:57:00 EST

Filed under: Car Buying, Trends, Government/Legal, Green

People have always had something of an aversion to hard truths. Most Americans say they want their country to get off foreign oil or help the environment, but when it comes to the bottom line, they want cheap fuel. And when the prices on gas pumps start to dip, consumer interest in smaller more efficient vehicles tends to go out the window. Understandably, drivers everywhere tend to make vehicle purchasing decisions in large part based on fuel prices.

Ward's Auto World columnist Drew Winters notes that executives like Bob Lutz have long advocated that fossil fuel prices need to increase in order to make more efficient vehicles appeal to consumers. But with U.S. consumers' almost instinctual avoidance of taxation, it has been difficult for politicians to consider such measures. Instead, it would appear that most constituents want government to mandate both more fuel efficient cars (through mechanisms like CAFE) and cheap gas without impacting the cost of automobiles themselves.

Winters paraphrases The End of Oil author Paul Roberts, noting that "every major fuel shift in history - from wood to coal to oil - was driven primarily by market forces, specifically by competitive advantages of the new fuel over the old." Thus, part of the solution may simply to make the fossil fuels more expensive relative to other energy sources.

Unfortunately, Winters surmises, it appears that nobody can handle this truth.

[Source: Ward's Auto World | Photo: GoodGreentips.com]

Ward's columnist wonders if Americans can handle the truth about gas taxes originally appeared on Autoblog on Sat, 27 Dec 2008 18:57:00 EST. Please see our terms for use of feeds.

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Industry sets fuel efficiency record in first half of '08

Jeremy Korzeniewski — Wed, 13 Aug 2008 09:58:00 EST

Filed under: Trends, Government/Legal, Green

In light of the current pain at the pumps, fuel economy is on all of our minds these days no matter what kind of car you drive. That being the case, it might not be surprising to you that the car we're buying are getting more fuel efficient. Don't believe us? The National Highway Traffic Safety Administration has just revealed that the U.S. auto industry set a new record in overall fuel efficiency during the first half of the 2008 model year by averaging 26.8 mpg through March. That's up from an average of 26.6 mpg through the entire 2007 model year.

While this is certainly good news for both consumers and manufacturers that need to meet the government's mandated CAFE standards, the numbers used by the NHTSA aren't really representative of the real-world fuel mileage you should expect to achieve on the road. The testing standards were initially created in 1975 and automakers get certain credits for creating flex-fuel vehicles, which can artificially inflate their miles-per-gallon numbers. Additionally, automakers earn credits for surpassing the CAFE requirements and can carry these credits forward for up to three years. Still, the numbers are somewhat worthwhile when comparing the current model-year with those of the past. Expect to see the year-end numbers set another new record as consumers continue choosing smaller and more fuel efficient models over larger, gas-guzzling choices.

[Source: The Detroit News]

Industry sets fuel efficiency record in first half of '08 originally appeared on Autoblog on Wed, 13 Aug 2008 09:58:00 EST. Please see our terms for use of feeds.

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Toyota tops big company CAFE ratings for 2007 model year with 29.69 mpg

Sam Abuelsamid — Fri, 25 Jul 2008 13:01:00 EST

Filed under: Government/Legal

The final 2007 model year tally of corporate average fuel economy for automakers selling cars in the U.S. is done, and Toyota came out on top of the heap again among the big brands. However, Toyota was not the overall winner. That honor went to none other than Lotus with 30.2 mpg! Lotus however is a very small fish in a huge if shrinking pond, having only sold six hundred 2007 model cars here. Toyota sold a couple more than that and averaged 29.69 mpg with its lineup of Priuses, Camrys, Corollas and Tundras. The no. 1 brand edged out Honda and Hyundai, which got 29.47 and 29.39 respectively. The Detroit based automakers? Well, not so good. GM, Ford and the then DaimlerChrysler brought up the rear with 25.16, 25.15 and 23.97. The 2008 numbers should show a significant improvement for all three companies now that truck sales have gone in the toilet and they are selling whatever smaller cars they have as fast as they can build them. Chrysler will also benefit by not including Mercedes-Benz in its numbers.

The averages are sales weighted and based on fuel economy numbers from 1970s era test procedures rather than the new lower mileage numbers that can be found on current window stickers, so keep that in mind. You can check out the full report at the NHTSA web-site including numbers for previous model years.

[Source: NHSTA, via Toyota Open Road Blog, Photo by Justin Sullivan/Getty]

Toyota tops big company CAFE ratings for 2007 model year with 29.69 mpg originally appeared on Autoblog on Fri, 25 Jul 2008 13:01:00 EST. Please see our terms for use of feeds.

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GM responds to new CAFE standards

Jonathon Ramsey — Mon, 03 Dec 2007 18:03:00 EST

Filed under: Hybrid, Government/Legal, Green, GM

It appears as if GM is ready to accept the current CAFE legislation waiting to be decided by Congress. In a statement on the General's media site, Rick Wagoner writes,

"There are tough, new CAFE standards contained in the energy bill before Congress that pose a significant technical and economic challenge to the industry. But, it's a challenge that GM is prepared to put forth its best effort to meet with an array of engineering, research and development resources. We will continue our aggressive pursuit of advance technologies that will deliver more products with more energy solutions to our customers."

The release goes on to detail GM's current environmentally-friendly accomplishments, which include the company offering "more vehicles that achieve 30 mpg on the highway," and having "produced over 2.5 million E-85 capable vehicles to date--more than any other automaker." It also says that GM sees ethanol as the "best near-term solution" to reduce gasoline consumption. Yeah, we chuckled at that one, too.

And then there are hybrids, which GM plans to roll out at an average of one every three months over the next two years. We're quite sure that GM has the means and, lately, the desire to do the green thing. The only uncertainty is whether they'll deliver substantially, and in ways that customers want. Their ace in the hole is, of course, the much anticipated Volt. If Lutz and his crew can get it out when promised, as promised, then 2010 will be the year of The Great Leap for GM in terms of brand perception, and, most likely, sales.

[Source: GM]

GM responds to new CAFE standards originally appeared on Autoblog on Mon, 03 Dec 2007 18:03:00 EST. Please see our terms for use of feeds.

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Mr. Porsche goes to Washington: Low-volume CAFE classification could save Porsche millions

Jonathon Ramsey — Mon, 26 Nov 2007 18:26:00 EST

Filed under: Performance, SUV, Government/Legal, Green, Porsche

The Senate bill to raise CAFE changes the definition of a low-volume manufacturer from a company that produces 10,000 cars worldwide per year, to a company that has less than 0.4-percent of the US market -- which would be about 64,000 vehicles currently. Porsche sold 34,227 cars and SUVs in the U.S. last year, and if the new classification stands, as a low-volume manufacturer Porsche could benefit from relaxed standards and save itself a heap of money in fines. The provision would also open the door for Jaguar and Land Rover to be reclassified once they are sold.

Under current CAFE regulations, Porsche paid $4.6 million in fines last year. When the new regulations are adopted, that number stands to increase significantly, which is why Porsche wants to keep the new low-volume provision in tact and has hired a full-time lobbyist to make that happen. Other automakers, of course, are not too happy about Porsche's efforts, with a Mercedes lobbyist saying 64,000 cars "isn't really a small number." The question is, could a Porsche that owns VW still be a low-volume manufacturer?

[Source: Auto News, sub req'd]

Mr. Porsche goes to Washington: Low-volume CAFE classification could save Porsche millions originally appeared on Autoblog on Mon, 26 Nov 2007 18:26:00 EST. Please see our terms for use of feeds.

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Imports tell Congress they can handle a 35 mpg CAFE

Jonathon Ramsey — Thu, 01 Nov 2007 19:42:00 EST

Filed under: Government/Legal, Green

Did you hear that? It was the sound of fourteen gauntlets being thrown down by import automakers in the halls of Congress. That's the number of foreign car makers including Toyota, Honda, Nissan, and Hyundai that have said they can meet a CAFE standard of 35 MPG -- they just can't do it by 2020 and request "several more years." How many more is several? No one says, but it's a start.

The group in question is the Association of International Automobile Manufacturers, which has decided to stop trying to fight the 35 MPG standard that's being proposed. Mike Stanton, president of the group, has called that figure "a pretty sacred number" on Capitol Hill." That group, though, is different than the Alliance of Automobile Manufacturers, which is the Big Three, Toyota, and five others. They say the Association's position isn't at odds with theirs, which makes sense because no one is saying that 35 MPG isn't achievable. Everyone just wants more time to do it, and again, the Association hasn't said how much additional time it wants.

The import makers haven't decided whether they still want to fight the merging of car and truck standards into one single standard for an automaker's entire fleet. It will continue to fight Congress' wish that more cars run on mostly ethanol, and it doesn't want to keep certifying domestically-made and imported cars separately. We would tell you that the debate over federal CAFE standards should come to an end later this year as some analysts claim, but we have little faith a final agreement will be reached.

[Source: Auto News, sub req'd]

Imports tell Congress they can handle a 35 mpg CAFE originally appeared on Autoblog on Thu, 01 Nov 2007 19:42:00 EST. Please see our terms for use of feeds.

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Sixty-four House Reps ask President to favor softer fuel economy bill

Jonathon Ramsey — Mon, 22 Oct 2007 09:31:00 EST

Filed under: Etc., Government/Legal, Green

A group of Congressmen and women wrote a letter to the principal -- President Bush -- and told him not to pay attention to what the other students are saying. The sixty-four representatives requested that President Bush choose the house version of the fuel economy bill still being debated in Congress, not the Senate version.

The Senate bill was passed this summer that mandated 35 mpg by 2020 for both cars and trucks (the current CAFE standard is 27.5 mpg for cars and 22.5 mpg for trucks). That bill didn't include the 4% annual increases in CAFE standards after 2020 that senators wanted. The bill being presented in the House is the Terry-Hill bill, which would raise CAFE standards to between 32 and 35 miles per gallon, but keep standards separate for cars and trucks.

The Representatives wrote to Bush because the bill is not following the usual course, so they want to prevent any extra-Congressional agreement between the Senate bill supporters and the President. The Terry-Hill bill has the support of automakers and the UAW. With Senator Carl Levin working in the Senate to get his Big Three constituents taken care of, the final fate of the bill is far from decided.

[Source: Detroit News]

Sixty-four House Reps ask President to favor softer fuel economy bill originally appeared on Autoblog on Mon, 22 Oct 2007 09:31:00 EST. Please see our terms for use of feeds.

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