Which Carmakers Will Win—and Lose—Under New Mileage Rules

June 2, 2008 RSS Feed Print
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The media views the 2009 Honda Fit at a preview during the New York International Auto Show.

The media views the 2009 Honda Fit at a preview during the New York International Auto Show.

Drivers aren't the only ones desperate to get more mileage from a gallon of gas.

Under the landmark energy bill that Congress passed last year, automakers must meet tough new mileage targets. The rules will be finalized later this year and go into effect starting in 2011. And based on new data, it looks as if a few automakers will struggle to meet the targets—or miss them altogether, which would trigger expensive fines.

The automakers aren't publicizing their mileage shortcomings, but U.S. News found the data in recently published government documents. Under the new law, cars sold in the United States need to average 35 miles per gallon by 2020—a 40 percent increase over today's standards. But Congress left lots of devilish details for others to figure out, and the repercussions of the mileage changes are just starting to emerge.

Each automaker, for instance, will have a different mileage target, based on the mix of cars, SUVs, and pickup trucks it sells. It's up to the National Highway Traffic Safety Administration to determine each automaker's target, along with a phase-in schedule. NHTSA just recently published its first draft of those targets, including internal company data that show each automaker's estimates of its own fleetwide mpg in 2011.

U.S. News used those data to determine which automakers are closest to their required targets for 2011 and which have the farthest to go. (You can view our sources and methodology here.) The findings reveal that companies like Volkswagen, Subaru, and Suzuki may have to significantly shift their product plans—and do it fast, since building cars is a complex process, with design and manufacturing plans often locked down two or three years ahead of time. Other manufacturers could gain an advantage from the new rules. Here's what our analysis shows:

Some surprising laggards. Volkswagen, Subaru, and Suzuki are far from their 2011 targets—even though they tend to build smaller cars with better mileage than their competitors. This seems to be an anomaly of the new rules. Each automaker's target is computed based on the "footprint," or relative size, of each model it sells, along with the sales volume for each model. Automakers with a bigger average footprint, therefore, tend to have lower mileage targets.

Manufacturer Company's planned
average mpg, 2011
Newly required
average mpg, 2011
How much mpg
must be improved
Porsche 25.4 37.6 48.0%
Subaru 27.6 36.9 33.7%
Suzuki 29.6 37.3 26.0%
Volkswagen 28.8 35.4 22.9%
BMW 27.5 33.3 21.1%
Mercedes 26.2 31.7 21.0%
Mitsubishi 29.8 33.0 10.7%
Ford 28.2 31.0 9.9%
GM 28.2 30.0 6.4%
Average 30.1 31.2 3.7%
Hyundai 32.7 33.4 2.1%
Nissan 30.6 31.2 2.0%
Chrysler 28.2 28.7 1.8%
Honda 34.8 32.1 -7.8%
Toyota 34.3 30.1 -12.2%

Sources: National Highway Traffic Safety Administration, "Notice of Proposed Rulemaking, Average Fuel Economy Standards, Passenger Cars and Light Trucks, Model Years 2011-2015;" "Preliminary Regulatory Impact Analysis, Corporate Average Fuel Economy for MY 2011-2015 Passenger Cars and Light Trucks."

Notes: Manufacturer production plans are preliminary in some cases and are based on "adjusted baseline" numbers, as computed by NHTSA, which account for certain manufacturers making minor technological changes to meet government requirements.

Tags:
fuel efficiency,
National Highway Traffic Safety Administration,
car manufacturers,
energy policy and climate change,
cars

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Subject: Oil in the US

Take the time to hear all this man has to say......I used the 'pause' button, so

I could do other stuff, etc.................it's worth your time.

It's dated Oct. 24- 2007 and is coming true, just as he predicted ($4 gas, etc.)

Oil in the US

This is rather long, but I promise you it will shock and amaze you.

Finally someone tells the truth about what is going on in this country and it's all about OIL.

If you listen to every word to the end, most of your life long questions will be answered.

I think that this man is risking his life by telling what he knows. This is Serious Stuff ....

http://video.google.com/videoplay?docid=3340274697167011147

If we pay $3 per gallon now after the president tells the truth about Oil in the US. then we can also get our National Debt to drop very fast and our dependancy on other countries will diminish

Kirk of CA 3:29PM June 15, 2008

When all of this recent rise in gas prices since our current president took office, I said the price of gas will go up by memorial which has now moved to Easter time and Spring break and goes down by labor day when the fuel oil prices rose. Each year of this presidency it has steadily increased. Anybody else see the pattern here? In his final year of office when he can't continue the trend, it skyrockets. Funny how a president with an interest in the oil industry has allowed all of this to happen. I predicted all of this when he took office and people still tell me I am wrong. How wrong do I look know? Everything I predicted when he took office has taken place.

Prices could be brought down if people would smarten up to not play Washington's game, and stand up as a people so we could get reform and change. One person can't do it alone but many banding together can. Cut back on your gas use, find a friend to ride to work with and take turns. It is time to take back our borders and fight for a better tomorrow. Our country as it is now is poisoning our people in mind and body. It is making our people a bunch of drug dependent people afraid to stand up for what is right.

Fifty years ago this was a much better place to live. We didn't have all the gadgets and technology but it was a place with integrity and family values. Neighborhoods were about keeping each other safe not about not seeing if you could have more than them or how much dirt you can spread about them. Maybe giving up a lot of what we have and going back to a much simpler life could turn our world around. The depression we are heading for will do it for us because nobody will have anything. If people would step back give up some of the extras and give their kids the loving attention they need there could be a much better tomorrow. Fix family healthy meals at home from stuff grown in a family garden. Try it and see the rewards you get. Most families can't answer simple questions about who their family members are and what they like or dislike.

All of these things would decrease time on the road and make for a better tomorrow by bringing people together.Tell those around you to have a nice day. Plan block parties for neighborhoods encourages friendship and going places together such as kids sports, work, weekly shopping. Encourage carpooling whenever possible. Little things can make a huge difference!

Kathy Scherter of SC 2:59PM June 15, 2008

BACK IN 1973-74 I WORK AT A SUNOCO PUMPING STATION AS A CONTRACTOR .MY COMPANY WAS INSTALLING A 65,000 GALLON TANK FOR UNLEADED FUEL. FUEL WAS BEING RATIONED THEN AND THERE WERE NO PURCHASES ON THE WEEKEND.AS A PERK EVERYONE ASSIGNED TO THIS PROJECT COULD FILL THEIR CARS FOR FREE.I THINK OPEC WAS TRYING TO GET THE PRICE OF $20.00 per barrel.Gas at that time was less than a $1.00 approximately .50cent.As time went on I got a chance to become freinds with the dispatcher. This guy was very knowledgeable about the supply side of oil.This pumping station was of course was located on a waterway and parked beside the pumps were 4 barges loaded to the gills with gasoline.My question to the dispatcher was if the embargo that the newspapers all over the country were crying about is true ,why aren't you unloading those four barges.His answer was,when gas gets up to $1.00 a gallon America will have all the gasoline it will ever need.This really happen and it came true.OPEC got $20.00 a barrel and we got $1.00 a gallon gasoline.This only proved to me that the oil men of America were pulling the strings then and now is no different.

EVB of KY 11:41PM June 06, 2008

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