White House wants automakers to agree average fuel economy target of 54.5 mpg

Article by Christian Andrei, on July 26, 2011

Automakers are being pressured by the White House to agree to a corporate average fuel economy target of 54.5 mpg by 2025. This figure is 1.7 mpg less than the 56.2 mpg standard it had proposed in early July.

Sources say that the White House lowered this figure in response to a concession to producers of light trucks and SUVs, specifically larger vehicles in that segment like Ford's F-150.

Industry and congressional officials, who asked to remain nameless, said that the most recent White House proposal (the most definitive one ever) is asking for a 5% annual mileage increase for cars from 2017-2025.

The average yearly increase demanded for light trucks and SUVs is 3.5% from 2017-2021. The sources added that the annual figure would increase by 5%. The White House briefed several lawmakers this week on the status of talks with automakers.

Industry officials said that in the light truck class, the average annual increase would be lower than 3.5% for heavier vehicles and higher than 3.5% for lighter vehicles. According to the White House proposal, the targets would have to undergo a mid-course review that will have to be accomplished before 2022.

This suggests that both the 5% annual increase in fuel efficiency for cars and plans to increase the 3.5% figure for trucks and SUVs would be assessed for how they affect industry costs, technology and sales.

Topics: united states

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