Except Chrysler In The 1980's
Bottom Line: We Don't Believe It
General Motors Co., Ford Motor Co., Chrysler Group LLC, Honda Motor Co. and Hyundai Motor Co. have endorsed a proposal by the Obama administration to raise averaged auto/truck fuel economy standards from the current target of 35.5 mpg by 2016 to 54.5 mpg by 2025. The White House will officially propose the rules by its Sept. 30 goal. It could have moved forward without industry support, but the White House's goal was to have backing from major auto makers. We still cannot beleive the automakers are agreeing to the increase. They are up to something. Car makers have argued the proposal would effectively require most new vehicles sold in the U.S. to be battery-powered by 2025 and raise prices by thousands of dollars. Makers of electric vehicle technology say declining costs for lithium batteries will allow the auto industry to make big gains in fuel efficiency without stoking sticker shock.
The new proposal calls for a 5% average annual increase in fuel economy for cars and a 3.5% increase for light trucks through 2021. After 2021, both cars and trucks face a 5% annual increase.
Included in the plan are credits for hybrid pickup trucks and measures that will give big pickup trucks and sport-utility vehicles more leeway in meeting fuel-economy and emissions targets.
Auto companies also would get credit for technology that improves fuel economy in ways that often don't register in traditional Environmental Protection Agency tests. A feature that shuts of the engine when a vehicle is idling, is one example. (WSJ, 7/27/2011)
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