Posts Tagged ‘fuel economy standards’

10 Major Automakers Meet With Trump Over CAFE Today

Session could focus on opposition from California.

by on May.11, 2018

Former Ford CEO Mark Fields generated controversy last year when he warned Pres. Trump CAFE could cost 1 million U.S. jobs.

Senior executives from ten of the auto industry’s largest manufacturers will be meeting with President Donald Trump at the White House today to discuss the administration’s plans to roll back federal fuel economy standards.

A draft proposal developed by the Environmental Protection Agency would freeze requirements at 2020 levels rather than continuing a phase-in established by the Obama White House that was set to reach 54.5 miles per gallon by 2025. The new target would come in somewhere in the low 40 mpg range and hold through 2026.

Stay in the Loop!

But the meeting could prove to be an anxious one. Consumer and environmental groups have been ramping up opposition and any announcement from the White House would come at a time when fuel prices are surging to levels not seen in years. Meanwhile, any rollback could pit the Trump Administration – and the auto industry – against California which is threatening to effectively stall the cuts by using authority given the state under the Clean Air Act of 1970.

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Auto Industry Backs Away from Trump Mileage Rollback

“We support standards that increase year over year,” says auto trade group chief.

by on May.08, 2018

Automakers are reversing course and telling the EPA not to order a major mileage cut.

The auto industry appears to be pulling back its support of the planned rollback in Obama-era fuel economy standards that the Trump Administration is expected to announce in the coming days.

Manufacturers are also putting pressure on the White House to work out a compromise with the State of California over its unique ability to set even tougher emissions and mileage standards. EPA chief Scott Pruitt had indicated a desire to eliminate the waiver first approved by Congress as part of the original 1970 Clean Air Act.

We're Clearing the Air!

The industry about-face comes barely a year after top leaders raised concerns about the Corporate Average Fuel Economy standards during a meeting with then-new president — former Ford CEO Mark Fields warning the Obama target of 54.5 miles per gallon could cost 1 million jobs.

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EPA, Automakers Face Mounting Legal and Public Pressure to Leave Mileage Standards in Place

EPA sued by 17 states and District of Columbia; while automakers face public shaming campaign.

by on May.07, 2018

EPA Administrator Scott Pruitt's plans to rollback CAFE has triggered a major backlash.

A coalition of consumer and environmental groups plans to drive from Washington, D.C. to Detroit this week to deliver over 250,000 signatures demanding that the auto industry  — Ford in particular — back off on its call to roll back the Corporate Average Fuel Economy, or CAFE, standards.

If that doesn’t work, a separate coalition, this one comprising 17 states and the District of Columbia, has filed suit against the Environmental Protection Agency to prevent Administrator Scott Pruitt from going ahead with plans to rollback mileage rules established under the Obama Administration. While the EPA hasn’t announced a final plan, a draft resolution indicated it would target something just under 42 miles per gallon, down from the original 2025 target of 54.5 mpg.

Breaking News!

“This is about health, it’s about life and death,” California Governor Jerry Brown said last week during a news conference announcing the lawsuit. “This phalanx of states will defend the nation’s clean car standards to boost gas mileage and curb toxic air pollution,” Brown said while referring to the controversial EPA chief as “Outlaw Pruitt.”

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Carmakers Caught in Showdown Between California and DC

A hoped-for compromise seems unlikely.

by on Apr.02, 2018

President Donald Trump's push to roll back CAFE standards may create a dilemma for automakers.

The clash now looming between the federal government and the State of California about fuel-economy standards for new vehicles is raising the possibility automakers one day might have to build two different sets of the same vehicles for various parts of the nation.

Automakers have complained that the Obama administration imposed the current fuel economy standards just before the inauguration of President Donald Trump, saying the standards needed review in light of market forces and the state of current technology.

Environmental News!

Car companies have also said they would like a compromise between Washington D.C. and California. With the EPA set to roll out a new set of proposed standards, compromise is unlikely. (more…)

Keeping Current CAFE Standards Saves Owners Big Cash

New study shows car owners save thousands.

by on Sep.08, 2016

A new study shows that keeping the current CAFE standards for 2022-2025 will save car owners more than $3,000.

A new report from Consumers Union, the publishers of Consumer Reports, said retaining the current corporate average fuel economy, or CAFE, standards paves the way for buyers of 2025 model cars and trucks to save thousands of dollars during the life of their vehicle even if fuel prices hold steady.

Vehicle owners will average net savings total approximately $3,200 per car and $4,800 per truck, if the current standards for 2022-2025 remain in place, according to the study. If gas prices rise from today’s historically low levels, the savings would rise to $5,700 per car and $8,200 per truck, the study said.

News Now!

Shannon Baker-Branstetter, Energy Policy counsel for Consumers Union, which has long been a proponent of CAFE standards, said retaining the standards will help save consumers not only money on operating costs, but also protect consumers against future price shocks. (more…)

Toyota “Staying the Course” Towards 54.5 MPG CAFE Target

“Eventually,” says auto chief Carter, $4 gas “will come back.”

by on Jan.14, 2015

Toyota's Bob Carter said Americans need to be prepared for a return to $4 gas in the future.

Enjoy cheap gas while you can, says Bob Carter, the head of U.S. automotive operations for Toyota. Like all good things, it “eventually” will come to an end.

The collapse of gas prices was the talk of the North American International Auto Show during this week’s media previews, and senior industry officials universally said that this unexpected shift has both its benefits and challenges.

On Top of the News!

Consumers have more money to spend, but they’re also asking for the sort of big, powerful vehicles that could make it difficult to meet the upcoming, 54.5-mile per gallon Corporate Average Fuel Economy, or CAFE, standards that will take effect in 2025. (more…)

EPA, DOT Aim for 54.5 mpg by 2025

How will automakers meet these new rules?

by on Nov.17, 2011

Automakers could build more electric vehicles such as the Nissan Leaf to offset gas-powered vehicles. New fuel economy rules for the 2017-25 model years introduced Tuesday are projected to save nearly $6,600 worth of fuel per vehicle, offset by an extra $2,000 per car in new technology to improve fuel economy.

The U.S. Environmental Protection Agency and U.S. Department of Transportation unveiled their joint proposal that increases fuel efficiency requirements to 54.5 mpg if all reductions were made through fuel economy improvements.

The improvements would save consumers an estimated average of up to $6,600 in fuel costs over the lifetime of a 2025 vehicle for a net lifetime savings of up to $4,400 after factoring in related increases in vehicle cost. Overall, the net benefit to society from this rule would total more than $420 billion over the lifetime of the vehicles sold in from 2017-25, the government said.

Get Your Efficiency Here!

“Today’s announcement is the latest in a series of executive actions the Obama Administration is taking to strengthen the economy and move the country forward because we can’t wait for Congressional Republicans to act,” according to the release.

But the National Automotive Dealers Association said that the new standard could end up hurting the environment.

So what will these new vehicles be like and what technologies will automakers use to reach these goals? Here are some predictions:

Marchionne Issues Warning About China

Chrysler CEO says industry can meet 54.5 mpg mileage rules.

by on Aug.03, 2011

Chrysler CEO Sergio Marchionne at the 2011 Management Briefing Seminars - notably shedding his trademark black sweater for a more Summer-friendly polo shirt.

China’s fast-growing automakers pose a direct theft to the more established automotive order, Chrysler CEO Sergio Marchionne warned during an appearance at an annual automotive gathering in Northern Michigan today.

But the Canadian-educated executive said he is more confident than many that the industry will be able to meet the newly-approved 54.5 mpg Corporate Average Fuel Economy, or CAFE, standard – and without having to make a major shift to electric propulsion.

“We cannot afford to be unprepared for the ascent of China.   Even assuming China were to export only 10 percent of what it produces, the risk we face in our home markets is enormous,” said Marchionne, during an appearance at the annual Management Briefing Seminar, in Traverse City, Michigan.

Insight!

“The excuse that we did not understand or that we underestimated the scale will serve no purpose.  Rather we need to continue to work to make our industrial base more competitive, because the day of reckoning is inevitably coming,” he said, taking aim at the seeming complacency of companies such as General Motors, Daimler AG and Volkswagen AG, all of which have grown to depend on the Chinese market.

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California, Federal Regulators Agree to a Single Mileage Standard

Final decision expected by September 1.

by on Jan.26, 2011

A formal proposal for the 2025 CAFE standard is expected by September 1.

Facing the prospect of opposition from the new, Republican-controlled House of Representatives, federal regulators recently announced a delay in setting out proposed new fuel economy standards – which many have expected to push as high as 62 mpg by 2025.

But at least one challenge to raising the numbers appears to have been overcome.  The Department of Transportation, the Environmental Protection Agency – and the State of California – have all agreed they will speak with one voice, rather than releasing their own proposals and then trying to work out a very public compromise.

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Whatever the number, the government agencies involved in updating the Corporate Average Fuel Economy, or CAFE, standard plan to make their unified announcement by September 1.

“By working together with EPA and the California Air Resources Board to develop standards for the next generation of clean cars, we can set a standard that works for automakers across the country,” said Transportation Secretary Ray LaHood.

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Loopholes in Proposed CAFE Rules Under Attack

As gas prices rise, Public Citizen criticizes industry credits.

by on Oct.22, 2009

As always, the devil will be in the final rule details after lobbyists shape the regulations.

As always, the devil will be in the final rule details after lobbyists shape the regulations.

“The auto industry must not be allowed to compromise The Obama administration’s fuel economy, and greenhouse gas standards,” says Lena Pons, Policy Analyst of Public Citizen’s Congress Watch Division.

Under the proposal, which was announced with great political fanfare last September, automakers would have to raise the average gas mileage across their fleets to 35.5 miles per gallon and reduce carbon dioxide to 250 grams per mile by 2016.

The exact regulations that would put this in effect are now part of a complex rulemaking process at the National Highway Traffic Safety Administration (NHTSA) and the Environmental Protection Agency (EPA), which is expected to go on until next spring.

No Loopholes!

No Loopholes!

Therein lays the controversy, as lobbyists for the industry seek special exemptions for vehicles that will undermine the intent of the program. Pons says that the proposal must be improved before it is finalized because it offers auto manufacturers too many opportunities to evade proposed fuel economy gains.

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