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.

The footprint provision was intended to be a kind of grandfather clause that would protect automakers with larger fleets—which happen to be General Motors, Ford, and Chrysler—from rule changes that would create abrupt disadvantages. But there seem to be unintended consequences. Volkswagen, for instance, expects its passenger cars to average about 29 miles per gallon in 2011, slightly better than those of the Detroit automakers. But because its cars are generally small, its required mileage is 35.4 mpg—near the top of the scale. That means Volkswagen has to improve the fuel efficiency of its planned fleet—already deep into development—by 23 percent to meet the new standard.

That's a tall order. "For anybody within 10 percent or less, it shouldn't be that big a deal," says David Cole, chairman of the Center for Automotive Research. The carmakers ought to be able to substitute smaller engines, more efficient transmissions, and lighter materials to help reach the required mpg numbers. "But over 20 percent," says Cole, "it's going to be tough."

Volkswagen and Subaru say they're working on diesels, electric cars, and other high-mileage solutions to the problem. But both companies are also likely to lobby for a change to the rules, which aren't final yet. "It seems inherently unfair," says Subaru spokesman Michael McHugh. "We've been building small cars for a long time, and it feels like we're being punished."

The Detroit Three fare OK. Executives from the domestic automakers have complained that the new targets will require costly new technology—but they're closer to their targets than some competitors. For both passenger cars and light trucks (which the government treats as two separate categories), GM, Ford, and Chrysler are all within 10 percent of their targets. In fact, for light trucks—which include SUVs and pickups—GM is in pole position. Even though GM's average mileage for light trucks will be a relatively low 22.9 mpg in 2011—in the bottom half—it will need to improve its numbers by just 4.4 percent to meet its target.

The domestic makers will also benefit from credits for building "flex fuel" vehicles that can run on ethanol, which will effectively lower the mileage targets they have to meet. Many automakers will probably offer flex-fuel vehicles by 2011, but the Detroit Three will still build the most.

Manufacturer Company's planned
average mpg, 2011
Newly required
average mpg, 2011
How much mpg
must be improved
Porsche 17.3 25.9 49.7%
Mercedes 19.1 28.4 48.7%
Volkswagen 20.1 26.2 30.3%
Suzuki 23.4 30.3 29.5%
BMW 22.4 28.2 25.9%
Mitsubishi 25.5 29.4 15.3%
Hyundai 25.2 27.5 9.1%
Subaru 27.5 30.0 9.1%
Chrysler 23.6 25.2 6.8%
Toyota 23.4 24.9 6.4%
Average 23.5 25.0 6.4%
Nissan 23.7 24.9 5.1%
Ford 23.6 24.7 4.7%
Honda 25.0 26.1 4.4%
GM 22.9 23.9 4.4%

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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