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Obama administration set to raise fuel efficiency standards, but by how much? - The Washington Post

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Fuel efficiency rules require average fuel efficiency in the U.S. of 35 mpg by 2016. The debate is now on what to do for 2017 to 2025. New technology such as the P2 systems for hybrids already used in VW, Nissan and Hyundai vehicles makes a 20% increase in fuel efficiency possible. Large investments are being made to bring new technology to bear on increasing fuel efficiency significantly. Government agencies are looking at different scenarios by which the new fuel economy standards beyond 2017-2025 could be set between 47 mpg and 62 mpg. An additional factor is the reduction in greenhouse gas emissions- at 47 mpg the reduction would be 3%, at 62 mpg the reduction would be 6%. Another factor is how much the impact is on the cost of vehicles and reduced cost on gasoline. Here there is a wide range in the numbers for average mpg rules at 62 mpg- with EPA estimates at $2800-$3500 increase in vehicle cost and $5000 savings in fuel cost, Centre for Automotive Research estimates at $9790 increase in vehicle cost. The 62 mpg translates into "real world" actual efficiency of 45 mpg. In April 2011, 17 senators put out a letter of support for the 62 mpg proposal. There is a public value involved in this that is also significant- the reduced dependence on foreign oil means savings in defense expenditures in parts of the Middle East, and an economy that is less impacted by volatility in the price of oil. As this aspect of public value or benefits cannot be quantified easily even though they are significant, this may tend to be lost in the debate and the politics of fuel efficiency. For automakers there is significant marketing value in having a visible and strong presence in fuel efficient vehicles because of perception as forward looking- something that hurt Detroit carmakers in the last decade. During periods of gasoline prices at $5 a gallon this provides carmakers with an extra cushion of safety in securing car sales. Carmakers in one country such as the U.S. also have to worry about what carmakers in other countries such as Japan and Germany are doing- if the standards in the U.S. develop a gap compared to other countries developing advanced fuel efficiency technologies this poses significant risks because of the global nature of the automobile marketplace. See the group "Asleep at the Spigot" for more details on this. Many of these less quantifiable factors do not get the attention they deserve because they are significant from experience but not easily quantified. Throw into this the large unknown of what new technologies not yet developed lie ahead with a burst of effort by one country or another, which bring cost reductions at the same time - and the debate requires as much a good sense of what is the path offering the greatest advantages in years ahead than a pure exercize in numbers.

American fuel efficiency standards

04/12/2006

American fuel efficiency standards , energy prices and the evolution of the American automobile industry with the tendency towards larger cars in a world of cheap gasoline.

Grouped Articles

Detroit Gallops Ahead

Wall Street Journal 01/17/2014

American Energy Policy, Asleep at the Spigot

New York Times 07/06/2008

Ford looks to lead pack in fuel eficiency.

Detroit Free Press 01/09/2010

Cars shrink under pressure from government and consumers.

Detroit News 01/09/2010

Small Engine shift signals big changes for buyers.

Detroit News 01/09/2010

Toyota's Prius top sellig car in 2009.

Detroit News 01/09/2010

Diesel automobiles and fuel efficiency

04/27/2006

Grouped Articles

Efficiency, Imported From Europe

New York Times 07/19/2013

Diesels We Want but Can't Get

BusinessWeek 04/27/2006

Cleaning Up Diesel's Image - WSJ.com

Wall Street Journal 11/29/2006

Pain From Free Trade Spurs Second Thoughts

Wall Street Journal 03/28/2007

Running on Alternative Fuels

Wall Street Journal 01/14/2008

Obama administration set to raise fuel efficiency standards, but by how much? - The Washington Post

Washington Post 05/13/2011

Fuel efficiency gains- 2011-2015

02/28/2006

The role of new technology in making significant gains in fuel efficiency possible in coming years.

Grouped Articles

Detroit Gallops Ahead

Wall Street Journal 01/17/2014

Obama administration set to raise fuel efficiency standards, but by how much? - The Washington Post

Washington Post 05/13/2011

Americans Are Cautiously Open to Gas Tax Rise, Poll Shows

New York Times 02/28/2006

As the Price of Gasoline Takes Off, Oil and Auto Firms Trade Barbs

Wall Street Journal 04/12/2006

Mileage Leeway Sought

Wall Street Journal 06/29/2011

New Mileage Rules Debated by Carmakers and White House

New York Times 07/03/2011

Fuel Efficiency Technology development

05/03/2006

The search for gains in fuel efficiency by looking beyond engine components to other parts of a vehicle.

Grouped Articles

Auto Engineers Look Beyond Engines

Wall Street Journal 11/16/2010

Linking Mileage to Pump Price

Wall Street Journal 04/22/2011

Obama administration set to raise fuel efficiency standards, but by how much? - The Washington Post

Washington Post 05/13/2011

Lawmakers Weigh Tightening Fuel-Economy Rules

Wall Street Journal 05/03/2006

New Mileage Rules Debated by Carmakers and White House

New York Times 07/03/2011

White House Offers Auto Makers Concession to Win Mileage Support

Wall Street Journal 07/15/2011

Toyota's strategies in the hybrid, electric, and high fuel efficiency automobile market.

05/18/2005

Toyota's strategy is to license its technology for hybrids, and it has meticulouslp filed patents for moore than 2000 components in the Prius hybrid.

Grouped Articles

Toyota Debuts New Compact Hybrid Aqua

Wall Street Journal 12/27/2011

Toyota Bets on Upgraded Prius to Bolster Global Sales

Wall Street Journal 01/13/2009

With Gas Prices Less of a Worry, Buyers Pass Hybrid Cars By

New York Times 05/14/2015

Buy a Hybrid, and Save a Guzzler

New York Times 02/08/2006

Toyota Says It Plans Eventually to Offer an All-Hybrid Fleet

New York Times 09/14/2005

At Frankfurt Auto Show, a Reluctant Embrace of Hybrids

New York Times 09/15/2005

Automakers efforts to meet 2025 fuel efficiency standards- through small engineering changes

05/13/2011

Grouped Articles

Detroit Gallops Ahead

Wall Street Journal 01/17/2014

Coaxing Miles From a Chevy Redesign

Wall Street Journal 08/30/2011

Fueling a Sneak Attack on Crude-Oil Prices

Wall Street Journal 11/19/2011

Hybrids' Unlikely Rival: Plain Old Cars

BusinessWeek 02/23/2012

Ford's Trade-In: Truck to Use Aluminum in Place of Steel

Wall Street Journal 07/27/2012

U.S. Sets Much Higher Fuel Efficiency Standards

New York Times 08/28/2012

Efforts in 2011 to bring U.S. fuel efficiency standards on a par with standards in Europe and Japan

05/27/2010

Grouped Articles

Ford Is Hoping to Give the Once-Great Explorer a Second Life

New York Times 05/27/2010

Detroit Gallops Ahead

Wall Street Journal 01/17/2014

New Mileage Rules Debated by Carmakers and White House

New York Times 07/03/2011

White House Offers Auto Makers Concession to Win Mileage Support

Wall Street Journal 07/15/2011

Auto Makers, White House Spar on Fuel-Economy Goal

Wall Street Journal 07/19/2011

Five Car Makers Back White House's Tougher Fuel Economy Rules

Wall Street Journal 07/27/2011

Hybrids, new technology and gains in fuel efficiency- 2011-2014

04/12/2006

The new P2 systems for hybrids provide a gain in fuel efficiency of 20% by using one inverter and one motor in place of two inverters and two motors. The introduction of this technology by VW, Hyundai and other manufacturers. The role of new technology in making large gains in fuel efficiency possible.

Grouped Articles

All-Wheel Drive for Hyundai

Wall Street Journal 09/04/2010

With Gas Prices Less of a Worry, Buyers Pass Hybrid Cars By

New York Times 05/14/2015

As the Price of Gasoline Takes Off, Oil and Auto Firms Trade Barbs

Wall Street Journal 04/12/2006

Once a Global Also-Ran, Hyundai Zooms Forward

Wall Street Journal 06/30/2011

New Mileage Rules Debated by Carmakers and White House

New York Times 07/03/2011

White House Offers Auto Makers Concession to Win Mileage Support

Wall Street Journal 07/15/2011

Improvements in Fuel Economy for carmakers in 2009 and beyond.

01/06/2008

With the government's investment in GM and its clear mandate for higher fuel efficency under the Obama administration, and with Ford's committment to fuel efficiency leadership, as well as the operation of Chrysler by Italian small carmaker Fiat, the move is towards smaller cars, large gains in fuel efficiency, and investment in hybrid cars.

Grouped Articles

Detroit Gallops Ahead

Wall Street Journal 01/17/2014

Fuel-Efficiency Technology Gives Fiat a Boost in Bargaining to Acquire Chrysler Stake

Wall Street Journal 04/07/2009

With Gas Prices Less of a Worry, Buyers Pass Hybrid Cars By

New York Times 05/14/2015

Ford looks to lead pack in fuel eficiency.

Detroit Free Press 01/09/2010

Cars shrink under pressure from government and consumers.

Detroit News 01/09/2010

Small Engine shift signals big changes for buyers.

Detroit News 01/09/2010

The new generation of post-2008 SUV's and light trucks from the Detroit Big Three automakers

04/12/2006

Fuel efficiency has increased and sales are up. Will the sales withstand another switch back to smaller cars if fuel prices spike in 2011?

Grouped Articles

Ford Is Hoping to Give the Once-Great Explorer a Second Life

New York Times 05/27/2010

Why Gas Feels Cheap—and Why It’s Not, Historically Speaking

Wall Street Journal 01/04/2015

U.S. Auto Sales Surge in December

Wall Street Journal 01/06/2015

The Durango Becomes a Civilized Utility Vehicle

Wall Street Journal 01/05/2011

Minivans Avoid That Name in Search of a Sporty Image

New York Times 01/03/2011

Detroit Says It's Ready for Higher Gas Prices

Wall Street Journal 01/04/2011


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