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Filed under: Car Buying, Hybrid, Technology, Porsche, Diesel
It's amazing what a little regulation can do for an industry. In the past four years, the fuel economy of new vehicles has improved by an average of 14 percent, according to a new study by the University of Michigan. This increase comes on the heels of big hikes in the Corporate Average Fuel Economy, which
Congress raised in 2007 for the first time in decades. Since then,
CAFE has been set at 34.1 miles per gallon by 2016, and
a new proposal that's pending would raise the fuel economy standard to 54.5 mpg by 2025.
The Michigan study showed that the average fuel efficiency of 2012 light-duty vehicles on the market was 21.5 mpg, up from 18.9 in 2008. Adjusted for the vehicles that are actually purchased, the number is even higher, with 2011 coming in at 22.5 mpg. Researchers say that shows that consumers are buying models with better fuel economy.
The biggest efficiency improvements over the past four years came from diesels, which jumped 9.8 mpg, likely as a result of more diesel passenger cars being offered. Hybrids, oddly enough, saw their average fuel economy drop by 3 mpg's, no doubt because of a number of larger and thirstier hybrids hitting the market, like the
Porsche Cayenne S Hybrid.
Click
past the jump to read the full press release.
Continue reading New vehicles 14% more fuel efficient than four years ago
New vehicles 14% more fuel efficient than four years ago originally appeared on Autoblog on Fri, 10 Feb 2012 09:32:00 EST. Please see our terms for use of feeds.
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February 10th, 2012
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Filed under: Hybrid, Government/Legal, Electric
Less than a year after everyone with any sort of say in the matter seemed to agree that 54.5 miles per gallon by the year 2025 was a
properly attainable goal, the
California Air Resources Board has decided to change things up a bit.
In addition to
CAFE requirements of a
54.5-mpg fleet average (using the government's formula, not what you see on window stickers), at least 15.4 percent of all cars sold by any major automaker doing business in California will have to be either fully electric, a plug-in hybrid or be powered by a hydrogen fuel cell by 2025. There are
questions about the "over-compliance" section of the bill, which we'll be investigating further.
According to Mary Nichols, chair of the California Air Resources Board, 15.4 percent is "actually a relatively modest goal, but that's all that we're mandating." Most automakers are on board, says Nichols. "Probably the most heartening aspect of this whole rulemaking was the level of cooperation that we received from the industry... Overall, the degree of support for the package was just extraordinary."
Even if automakers are on board, though, there's still a question of who will actually buy the vehicles. While everyone wants better fuel efficiency, not everyone is willing to pay for it, counters the California New Car Dealers Association, estimating that the plan would add about $3,200 to the average price of a new car or truck. Perhaps to help dissuade such fears, Nichols added that "direct incentives to people who buy these cars (like) rebates and credits" are also in the works.
At least 10 more states are likely to follow California's lead, reports
Automotive News. That would put the total number of advanced green vehicles (either with a plug or powered by hydrogen) at around three million total units by 2025, 1.4 million of which would be in California.
California breaks rank again, demands over 15% of cars sold be non-polluting by 2025 originally appeared on Autoblog on Fri, 27 Jan 2012 19:29:00 EST. Please see our terms for use of feeds.
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January 27th, 2012
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Filed under: Car Buying, Etc., Government/Legal, UAW/Unions
Bob King, President of the
United Auto Workers, is adding his voice to those who have already chimed in with
support for the new Corporate Average Fuel Economy standard of 54.5 miles per gallon by 2025. In what might be a historic break from the union's contentious past, King is throwing in for the new fuel efficiency rules because he thinks it will mean jobs for his members as the auto industry reacts to the mandate.
In the past, such a decree could have meant much wailing and gnashing of teeth from both the automakers and labor unions. Instead,
The Detroit News reports King told a meeting of representatives from the
Environmental Protection Agency and
Nathional Highway Traffic Safety Administration "We are excited about the new green technologies that are being developed in the United states and produced in UAW-represented facilities." King went on to praise the rules as a change that will save people money at the gas pump and reduce pollution.
The proceedings in Detroit weren't all smiles, however. Don Chalmers of the
National Automobile Dealers Association expressed worry that the technology to make the fuel efficiency goal possible will tack on between $3,500 to $5,000 to the price of new vehicles, squeezing buyers with low cashflow or difficult credit inordinately. Still, the surprising bout of rainbows and puppy dogs that this latest CAFE requirement has engendered may be a harbinger of a new attitude all-around, as long as dealers can figure out how to put buyers into the newly efficient cars that automakers and labor leaders are so pleased to be creating.
UAW President Bob King pumped about new CAFE standards originally appeared on Autoblog on Wed, 18 Jan 2012 15:30:00 EST. Please see our terms for use of feeds.
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January 18th, 2012
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Filed under: Government/Legal
Experts have already predicted that toughened fuel efficiency standards will lead to cleaner air and help wean the United States from its reliance on foreign oil. Turns out, they could benefit consumer's wallets too.
That's the conclusion of the
Consumers Union and
Consumer Federation of America, which briefed reporters on Jan. 12 in preparation for a series of three public hearings that begin today, January 17, in Detroit on the new
54.5 mile-per-gallon standard currently under government scrutiny. That is the fuel economy average the Obama Administration wants automakers to achieve by 2025. There are two more hearings this month, one in San Francisco and one in Philadelphia.
The two consumer organizations said the new standard will save the average driver approximately $3,000 over a decade of ownership. Both groups said they would endorse an agreement between the Obama administration and automakers to implement the new standard by 2025. But there is a lot of chatter in the auto industry about whether this is a standard that American car buyers are really interested in.
On one hand, 80 percent of consumers say they are interested in owning a hybrid or electric vehicle, according to a recent study by
Consumer Reports. On the other, recent sales figures show they are buying an increasing amount of SUV and crossover vehicles as they get used to gas prices hovering around $3.50 per gallon for regular.
What gives?
In the context of what happens when automakers start producing vehicles that meet toughened fuel efficiency standards, that's a multi-million dollar question. Some skittish industry insiders fear a gap will develop between what's being sold and what customers want.
That's not necessarily the case, says Dr. Mark Cooper, the director of research for the Consumer Federation of America. He said the 54.5 mpg standard won't favor smaller vehicles.
"These standards have no bias against size," he said Thursday. "If you want to buy a big vehicle, it will be there. It will have to be more fuel efficient, and that is exactly the point. People will still love their SUVs, and they'll love them a lot more when they get 40 miles per gallon."
Consumer groups back 54.5 mpg standard as hearings commence originally appeared on Autoblog on Tue, 17 Jan 2012 15:58:00 EST. Please see our terms for use of feeds.
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January 17th, 2012
Filed under: Budget, Sedan, Dodge
Chrysler dropped a bombshell today, insinuating that its forthcoming
2013 Dodge Dart will have a combined fuel economy of 40 miles per gallon. Some media outlets have regurgitated this number without question. But it just isn't true, as that 40-mpg fuel economy number is unadjusted and will most certainly be lower once it gets printed on window stickers.
To better understand the way fuel economy numbers get calculated, we'll point you to
this page on the Environmental Protection Agency's website. The short version is that cars are tested by the
EPA to determine fuel economy for
Corporate Average Fuel Economy (CAFE), then adjusted for real world conditions before they are published, both on the EPA website and on Monroneys, or window stickers. City numbers are dropped by 10 percent, while highway numbers get a 22-percent reduction. Some rough estimating says that the Dart will probably be rated at about 34-mpg combined once the final adjustments are made. Still a good score, for sure, but far from 40.
So why did Chrysler even mention 40? In its big announcement today that
Fiat had increased its ownership stake, the explanation is that Chrysler has met one of the conditions of the bankruptcy agreement, that it produce a 40-mpg vehicle for CAFE. That vehicle is the Dart.
Could Chrysler have done a better job of explaining what the fuel economy number really means? Sure, but then we wouldn't have been able to write this post.
Continue reading Why the 2013 Dodge Dart won't really get 40 mpg combined
Why the 2013 Dodge Dart won't really get 40 mpg combined originally appeared on Autoblog on Thu, 05 Jan 2012 12:59:00 EST. Please see our terms for use of feeds.
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January 5th, 2012
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Filed under: Car Buying, Government/Legal, Technology
A study by the University of Michigan shows that auto manufacturers could meet
tougher fuel economy standards simply by increasing the size of the vehicles they sell. A "footprint-based" formula for calculating mileage targets was adopted when
Corporate Average Fuel Economy standards were revised in 2007. Researchers now think this could lead to bigger vehicles on the road rather than increases in fuel economy for our nation's fleet.
"It's cheaper to make large vehicles, and meeting fuel-economy standards costs [manufacturers] money in implementing and looking at what consumers will purchase," one of the researchers told
Automotive News.
The study simulated changes that auto manufacturers could make to 473 different vehicles in order to meet the new regulations. The model allowed for changing the size of vehicles, as well as adding fuel-saving technology, wile balancing acceleration and performance with fuel economy. Pricing was also taken into account. The researchers think that the size of light trucks is likely to grow, even more than the increases they forecast for cars, with the changes coming about as soon as 2014.
"This study illustrates that there may be a substantial financial incentive to produce larger vehicles, and that it can undermine the goals of the policy," said the lead researcher, who wants the
National Highway Traffic Safety Administration to revise its formula. Click
past the jump to read the University of Michigan's press release on the study.
Continue reading Why CAFE changes could lead to larger cars, not smaller ones
Why CAFE changes could lead to larger cars, not smaller ones originally appeared on Autoblog on Tue, 13 Dec 2011 18:21:00 EST. Please see our terms for use of feeds.
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December 13th, 2011
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