Automakers and Consumer Advocates Support Obama's New Fuel Standards

Calling it “the single most important step we’ve ever taken as a nation to reduce our dependence on foreign oil,” U.S. President Barack Obama proposed new corporate average fuel economy (CAFE) standards on July 29 that will cover cars and light trucks for model years 2017-2025—requiring performance equivalent to 54.5 miles per gallon (MPG) in 2025, while reducing greenhouse gas emissions to 163 grams per mile.

Cars would be required to average a 5 percent improvement in fuel economy each year from 2017 through 2025, while trucks would only need to rise 3.5 percent a year through 2021.

By 2025, the President said, “Just as cars will go further on a gallon of gas; our economy will go further on a barrel of oil.”

The standards are projected to save the average American family $8,200 at the pump over the lifetime of a new vehicle, relative to the model year 2010 standard. Over the life of the program, according to the White House, American families will save a total of $1.7 trillion in fuel costs.

The proposal is also predicted to reduce oil consumption by an estimated 2.2 million barrels a day in 2025; and to save 12 billion barrels in total over the lifetime of the program. In addition, the standards are estimated to cut greenhouse gas emissions by more than 6 billion metric tons over the life of the program, while reducing pollutants that cause soot, and smog.

“This proposed rule presents a path forward that greatly improves fuel economy while preserving customer choice and future industry growth,” General Motors commented in an official statement. “While future fuel economy targets are ambitious, the proposed CAFE rule represents a national approach and provides regulatory certainty for our industry. Additionally, the proposed rule includes flexibility that recognizes consumer needs and potential changes in technology and economic

James Lentz, president and COO of Toyota Motor Sales USA, stated, “I am pleased to be in Washington today to demonstrate Toyota’s unyielding commitment to this important process.  The long-term objectives of this program are very ambitious, and we intend to meet the challenge.   Toyota has embarked on the most aggressive expansion of hybrid, electric and hydrogen fuel cell cars of any automaker, and we are committed to continuing our demonstrated environmental leadership.”

United Auto Workers (UAW) union President Bob King remarked, “The Obama Administration listened to business, environmental, and labor stakeholders.  With the president’s leadership, compromises were reached that show how to make real progress on important issues.”

“No industry is doing more on these issues” said King, “and the auto industry deserves tremendous recognition for that.” He noted that, “Automakers are already retooling to produce more fuel-efficient vehicles, and investments are being made in dozens of UAW-represented facilities to produce everything from pure electric and plug-in vehicles to hybrid components to advanced transmissions.

Jack Gillis, Consumer Federation of America’s public affairs director, said, “The President has taken a giant step in reducing the burden of rising gas costs on the American family, reducing our dependence on foreign oil, and keeping the U.S. car companies competitive. President Obama demonstrated an uncanny ability to bring together consumer advocates, car companies, unions, and environmentalists to responsibly address America’s energy challenges.”

Senator Dianne Feinstein (D-Calif.), who earlier this week co-authored a letter with Senator Olympia Snowe (R-Maine) to the President urging him to support the “maximum feasible“ fuel economy standards of 56.2 MPG, had softened her stance by today.

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