Government Mandates For MPG

In the last few days, auto news rooms and the country has been talking a lot about the final version of President Barack Obama’s rule that will enforce automakers to double the average fuel economy of the cars the engineer by the year 2025.  The final bill that requires vehicles manufactured from 2017-2025 to increase their EPA fuel efficiency ratings to 54.5 miles per gallon.  President Obama commented on the rule stating, “It’ll strengthen our nation’s energy security, it’s good for middle class families and it will help create an economy built to last.”  The proposed benefits to this plan include:

• Reduced U.S. oil consumption (by 12 billion barrels).
• As much as $515 billion saved in fuel spending.
• Added incentives for automakers who sell natural-gas-powered cars and plug-in electric or electric-hybrid cars.
• Creation of as many as 570,000 jobs due to technological demands.

While the auto manufacturers are given flexibility around how to make this happen, the government rule has been criticized by some representatives who are calling it a “sweetheart deal” for the U.S. automakers who received government bailouts in the recent years.  It will require a transition for the average American buyer who hasn’t fully embraced the new electric car.  Society in general will have to make some adjustments as well which will include further integration of charging stations in service stations (which will be expensive), and people may be looking at jobs closer to home.  The average cost to buy a new car will go up as well.

Toyota already has some of the best selling hybrids and PHEV and EV cars on the market.  The new Toyota Camry St. Louis hybrid is a top-selling car in the United States and will continue to evolve every year by providing consumers with better fuel efficiency.