How Will Automakers Cope With Updated Federal Fuel Economy Requirements?

Summary

The automotive industry is on the brink of a significant transformation due to new federal fuel economy standards set to take effect by 2016. These regulations will require cars to achieve an average of 39 miles per gallon (mpg) and light-duty trucks to reach 30 mpg. Automakers will need to adopt various strategies, including producing smaller and lighter vehicles, increasing the use of diesel engines, expanding hybrid and electric vehicle offerings, and incorporating advanced technologies. This article delves into the specifics of these changes and their implications for the industry and consumers.

The Push for Higher Fuel Efficiency

Historical Context

The push for higher fuel efficiency isn't new. In 2007, President George W. Bush signed legislation mandating that automakers produce vehicles with lower fuel consumption and reduced emissions by 2020. However, President Barack Obama accelerated these requirements, moving the deadline up to 2016 and raising the standards.

New Standards

The updated regulations stipulate that cars must average 39 mpg, while light-duty trucks need to achieve 30 mpg. These ambitious targets will necessitate significant changes in vehicle design and technology.

Strategies for Meeting Fuel Economy Goals

Smaller and Lighter Vehicles

One of the most straightforward ways to improve fuel efficiency is by producing smaller and lighter cars. These vehicles typically weigh less and are powered by smaller engines, resulting in better gas mileage. However, this shift may face resistance from consumers who prioritize space, safety, and comfort.

Diesel Engines

Diesel engines are inherently more fuel-efficient than their gasoline counterparts, offering up to 30-40% better fuel economy. Volkswagen, for instance, has been a pioneer in introducing clean-burning diesel engines to the U.S. market. As a result, we can expect an increase in diesel-powered vehicles from various manufacturers.

Hybrid Vehicles

Hybrid cars, which combine gasoline and electric power, offer a viable solution for meeting fuel economy standards without sacrificing size and comfort. The Ford Fusion Hybrid, for example, delivers a combined 38 mpg while maintaining ample storage space and comfort. Other manufacturers like Toyota, Nissan, and General Motors are also expanding their hybrid offerings.

Electric Vehicles (EVs)

Electric vehicles are set to play a crucial role in achieving the new fuel economy standards. With fuel economy numbers exceeding 100 mpg, EVs will help offset the lower efficiency of larger sedans and trucks. Automakers are expected to introduce more EV models to their lineups in the coming years.

Technological Advancements

Turbocharged Engines

Turbocharged engines can provide more power without significantly increasing fuel consumption. This technology allows smaller engines to perform like larger ones, contributing to better fuel efficiency.

Advanced Transmissions

Six-speed automatic transmissions and other advanced transmission technologies can optimize engine performance and improve fuel economy.

Lightweight Materials

Using lighter materials such as aluminum and carbon fiber can reduce vehicle weight, further enhancing fuel efficiency. However, these materials can be more expensive, potentially adding up to $1,300 to the price of a new car.

The Financial Impact

The transition to more fuel-efficient vehicles will come at a cost. According to the National Highway Traffic Safety Administration (NHTSA), the new standards could add approximately $1,300 to the price of each vehicle. However, the long-term savings on fuel and the environmental benefits may outweigh these initial costs.

Interesting Stats

• Fuel Savings: The new standards are expected to save approximately 1.8 billion barrels of oil over the lifetime of vehicles sold between 2012 and 2025 (NHTSA).
• Emission Reductions: The regulations could reduce greenhouse gas emissions by about 6 billion metric tons over the same period (EPA).
• Consumer Savings: The average consumer could save up to $8,000 in fuel costs over the lifetime of a vehicle meeting the new standards (Union of Concerned Scientists).

Conclusion

The updated federal fuel economy standards represent a significant challenge and opportunity for automakers. By adopting a combination of smaller and lighter vehicles, diesel engines, hybrid and electric models, and advanced technologies, the industry can meet these ambitious targets. While the transition may involve higher upfront costs, the long-term benefits for consumers and the environment are substantial.

By understanding and adapting to these changes, both automakers and consumers can contribute to a more sustainable future.