The Auto Writer

The U.S. Congress has mandated that automakers meet a corporate average fuel economy (CAFE) standard of 35 mpg by 2020. Now, in light of skyrocketing fuel prices, members of Congress and of the Bush administration are calling for that number to be raised to 36 mpg and the timetable moved up to 2015. With current gasoline prices averaging $3.50 per gallon, the calls may be heeded.

Previously, under the energy bill passed in December 2007, the requirement had cars and light duty trucks averaging 31.8 mpg by 2015, which amounted to a 4.6% increase annually. Now, the automakers will likely have to spend $47 billion to achieve the higher fuel numbers, a cost that will be passed on to consumers. GM says that they will meet this goal by building many more hybrids, but the cost to consumers will add $6,000 to the price of each vehicle sold. GM will likely begin building cars like the Buick Invicta (pictured) in a bid to squeeze more power out of a smaller engine while still providing good fuel numbers.

In 2007, as part of Congress’ Energy Independence and Security Act, the National Highway Transportation and Safety Administration (NHTSA) was ordered to set yearly requirements to reach an industry-wide, fleet average of 35 mpg for both passenger cars and light trucks. At present, light trucks make up just over half of the vehicles sold in America, but the pendulum is beginning to swing as consumers shift their purchases to smaller, more economical cars.

California and 16 other states want an even more aggressive approach, calling for CAFE numbers of 43.7 mpg by 2016. The automakers and the general public will have an opportunity to comment on the plan before it becomes final.

(Source: The Detroit News)

Further Reading

Automakers Oppose States Setting Their Own Fuel Economy Standards

Same sad story: Oil and gas prices hit another record