Mexican Media Brands
Congressional Panel Plans Hearing on Fuel Economy Rules
Next week the U.S. House Energy and Commerce Committee will hold a hearing about the feasibility of U.S. fuel economy targets through 2025.
#economics #regulations
Share
Next week the U.S. House Energy and Commerce Committee will hold a hearing about the feasibility of U.S. fuel economy targets through 2025. Their goal is to determine the cost impact of the standard and whether it may force low-income consumers out of the new-car market.
Regulators have until 2018 to decide whether to sustain or modify second-phase standards that dictate a marketwide average fuel economy of 54.5 mpg by 2025.
Two months ago the Environmental Protection Agency and National Highway Traffic Safety Administration concluded carmakers have the technologies in hand to meet the standard at a reasonable cost. A survey of 23 suppliers by Calstart, a group that lobbies for greener transportation, found 70% in support of the current target.
But carmakers worry that the original calculations used assumptions about car sales that are no longer accurate.
They note that the 54.5-mpg goal assumes two-thirds of new passenger vehicles will be cars. In fact, more than half of such vehicles today are big trucks and SUVs—and the proportion of these less fuel efficient vehicles continues to rise. Using the original math, regulators estimate the countrywide new-car average will be closer to 50 mpg by 2025.
RELATED CONTENT
-
Porsche Doubles EV Target for 2025
Porsche AG says about half the vehicles it sells by 2025 will be equipped with hybrid or all-electric powertrains, twice the ratio it forecast four weeks ago.
-
China and U.S. OEMs
When Ford announced its 3rd quarter earning on October 24, the official announcement said, in part, “Company revenue was up 3 percent year over year, with net income and company adjusted EBIT both down year over year, primarily driven by continued challenges in China.” The previous day, perhaps as a preemptive move to answer the question “If things are going poorly in China, what are you doing about it?, Ford announced that it was establishing Ford China as a stand-alone business unit.
-
Mazda, CARB and PSA North America: Car Talk
The Center for Automotive Research (CAR) Management Briefing Seminars, an annual event, was held last week in Traverse City, Michigan.