Industry Market Trends

Automobile Manufacturers Pursue a Variety of Strategies to Improve Fuel Economy

February 25, 2013

The auto industry has plenty of incentive to improve vehicle efficiency. In August of 2012, the Obama Administration finalized new fuel efficiency standards that will increase fuel economy for cars and light trucks to an unprecedented 54.5 miles per gallon (MPG) by Model Year 2025. “When combined with previous standards set by this Administration,” the White House said in an announcement, “this move will nearly double the fuel efficiency of those vehicles compared to new vehicles currently on our roads.” The Administration says the new standards “will save consumers more than $1.7 trillion at the gas pump and reduce U.S. oil consumption by 12 billion barrels.” What measures will be used to comply with these aggressive new standards for vehicle efficiency? The White House's announcement doesn't go into much detail but does make mention of “advanced gasoline engines and transmissions, vehicle weight reduction, lower tire rolling resistance, improvements in aerodynamics, diesel engines, more efficient accessories, and improvements in air conditioning systems.” Read More