by Shane Henson — August 3, 2011—President Obama recently announced a historic agreement with 13 automakers to pursue the next phase in the Administration’s national vehicle program, increasing fuel economy to 54.5 miles per gallon for cars and light-duty trucks by model year 2025.
The President was joined by Ford, GM, Chrysler, BMW, Honda, Hyundai, Jaguar/Land Rover, Kia, Mazda, Mitsubishi, Nissan, Toyota and Volvo—which together account for over 90 percent of all vehicles sold in the United States—as well as the United Auto Workers (UAW), and the State of California, who were integral to developing this agreement.
Building on the Obama administration’s agreement for Model Years 2012-2016 vehicles, which will raise fuel efficiency to 35.5 mpg and begin saving families money at the pump this year, the next round of standards will require performance equivalent to 54.5 mpg or 163 grams/ mile of CO2 for cars and light-duty trucks by Model Year 2025.
These programs, combined with the model year 2011 light truck standard, represent the first meaningful update to fuel efficiency standards in three decades and span Model Years 2011 to 2025. In addition to curbing carbon pollution, together, they are projected to save American families $1.7 trillion dollars in fuel costs, save a total of 12 billion barrels of oil, and by 2025 reduce oil consumption by 2.2 million barrels a day. The oil savings, consumer, and environmental benefits of this comprehensive program are detailed in a new report titled Driving Efficiency: Cutting Costs for Families at the Pump and Slashing Dependence on Oil.
The Environmental Protection Agency (EPA) and the Department of Transportation (DOT) have worked closely with auto manufacturers, the state of California, environmental groups, and other stakeholders for several months to ensure these standards are achievable and cost-effective, and preserve consumer choice.
In achieving the level of standards described above for the 2017-2025 program, the agencies expect automakers’ use of advanced technologies to be an important element of transforming the vehicle fleet. The agencies are considering a number of incentive programs to encourage early adoption and introduction into the marketplace of advanced technologies that represent “game-changing” performance improvements.
