Published

Senators Urge EPA Not to Roll Back Fuel Economy Target

A group of U.S. Senate Democrats have urged the Trump administration not to abandon plans to require new-car fleets to average more than 50 mpg by 2025.
#economics #regulations

Share

A group of U.S. Senate Democrats have urged the Trump administration not to abandon plans to require new-car fleets to average more than 50 mpg by 2025.

The target was agreed to by carmakers in 2011 on condition that the Environmental Protection Agency review the plan by April 2018. The agency completed its review, declaring the goal “feasible and practical,” days before Donald Trump assumed the presidency in January with a vow to review the ruling.

The senators notes that carmakers have exceeded the regulation’s step-by-step increases in fuel efficiency to date. They also point to fuel savings for consumers.

Carmakers oppose the rapid escalation of fuel economy standards between 2022 and 2025 as costly and counter to consumer taste in vehicles. They point out that 95% of today's new vehicles can't meet the future standard.

EPA has estimated carmakers would spend $200 billion to approximately double average fuel economy between 2012 and 2025—but also save consumers some $1.7 trillion in fuel costs.

RELATED CONTENT

  • Tariffs on Autos: “No One Wins”

    While talk of tariffs may make the president sound tough and which gives the talking heads on cable something to talk about, the impact of the potential 25 percent tariffs on vehicles imported to the U.S. could have some fairly significant consequences.

  • On Quantum Navigation, EVs, Auto Industry Sales and more

    Sandia’s quantum navi, three things about EVs, transporting iron ore in an EV during the winter, going underwater in an EV (OK, it is a sub), state of the UK auto industry (sad), why the Big Three likes Big Vehicles, and the future of logistics.

  • 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.

Gardner Business Media - Strategic Business Solutions