Top Japanese automakers will benefit from tougher federal standards in US

Article by Christian Andrei, on April 11, 2013

Top Japanese automakers Toyota, Honda and Nissan will have no problem in meeting tougher federal standards in the U.S. as they already have a huge start from credits they’ve gotten since the 2009 model year. Since these automakers have already surpassed the old fuel economy standards before new requirements were implemented, Toyota, Honda and Nissan have a big enough cushion that will help them meet increasingly stringent standards. David Friedman, a senior engineer at the Union of Concerned Scientists, said that in March, the EPA released a report that details that these automakers have so many credits that their existing fleets, unrevised, may meet EPA requirements through the 2016 model year.

Friedman said that the companies aren’t likely to do that as they have to meet much tougher standards from 2017 to 2025 and since fuel economy has turned into a vital selling point. He said that these companies have sufficient credits so they may put off the near-term investments in clean cars. When the new standards began to phase in for the 2012 model year, Toyota had 86 million EPA credits.

Every credit stands for one more metric ton of carbon dioxide that its vehicles could emit over their lifetimes than the Obama administration's new program nominally permits. These credits give Toyota additional options for complying with new EPA limits on tailpipe emissions, which will become 3 to 5% more stringent every year in tandem with new corporate average fuel economy standards that increase by up to a nominal 54.5 mpg in the 2025 model year.

Toyota, the major player in hybrids, and other automakers have been silent about what it intends for these credits, which can be used until the 2021 model year, with the exception of the credits from 2009, which last just five years. Tom Stricker, vice president of technical and regulatory affairs at Toyota Motor North America, admitted that the credits are a "valuable tool for future compliance."

Topics: united states

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