Battle brewing on fuel economy standards

The White House is looking for a way to compromise, on future fuel economy increases, but it remains to be seen whether proposed new regulation of miles on both sides of the debate shall be fulfilled.

The Obama administration is hinting, that it requires automakers produce fleets of cars and trucks to get average 56.2 miles per gallon by the year 2025. One would represent almost a 60 percent increase over the 35.5 mpg mandate in place for 2016. But the bottom line, what a year, still much lower than he environmental protection agency originally pulls the 62 mpg number, which, considering an increase of 5%.

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An even greater increase in the standards advocates say fuel consumption that the compromise figure would not do enough to reduce global warming or reduce America's dependence on foreign oil.

But some industry representatives and others say that costs might cause even the 56.2 mpg standard, in which more than carry the public leading to declines in new car sales and the loss of thousands of jobs can, auto sharp. You have proposed 47 mpg, a standard perhaps, which would be an annual increase of 3% more than a decade.

"Overly ambitious benchmarks set 14 years in the future risk serious economic damage, if consumers want and needs not met," Bailey said wood, a spokesman for the National Automobile Dealers Association.

The corporate average fuel economy, or CAFE standards were controversial, since they were made law in 1975 after the first Middle East oil. Opponents of the standards by the rules for two decades, with only the most modest increases to the Obama management starting a boost able, effectively freezing 2012 model year 2016 negotiated.

Sporadic certain run up in oil prices over the past two years and growing concern about global warming, fuel the supporters of the Government mandated standards now they feel have to achieve momentum the largest mileage increases, because rules have been passed the original more than three decades ago.

Sure, would like to, that consumers improved fuel economy. Translation is reflected in the market smaller cars and smaller drives. But growing frustration with the Government and the public debate about global warming have more difficult to sell the original 62 mpg target, as some had initially expected.

Also complicated questions: Americans are worried about jobs and a study issued this month by the center of automotive research serious questions about the costs and benefits of pressure fuel consumption too far, too quickly raised.

The risk "is Ernst,", says the car study, which said that the higher standards the price of a typical car sold in the United States of about $9,000 and boost could at the same time new car sales of up to 5.5 million units per year, removing potentially more than 265,000 us jobs.

Advocates CAFE standards complains issued by the Boston Consulting Group pointing the car report as "Propaganda", instead to another study, on the same day as the auto report.

The Boston Consulting Group is far less negative about the projected sharp increase in the mileage. It would be "much cheaper than expected," said Boston Consulting Group analyst Xavier Mosquet, estimated the average cost at $2,000 per vehicle. Which, he claimed, would be paid easily by fuel savings, especially if gas prices continue, expect as many.

Why such a discrepancy between the two projections? There are many assumptions that are going forecasts more than a decade--as well as the types of technology, to adapt that may be available to meet those needs in which consumer demand.

Industry leaders will shrink as global head of product development Derrick Kuzak, Ford say that drivers be forced not only clearly such, but they will get probably also no longer today popular that capable of the kind of drives. The industry is probably forced to replace V8, V6s and even smaller 4-cylinder engines with battery-based technologies, which could affect performance, range and payload.

On the other hand, proponents of the substantial number of conventional vehicles, which already provide show CAFE 40 mpg on the highway without use of hybrid technologies that could bring even more savings. The Boston Consulting study, on the one hand sees tremendous opportunities with direct injection, turbocharging and advanced transmission systems.

The Administration backed down on the previous 62 mpg standard inserted, was the new Republican-majority House in January. But the question of the fuel economy is less partisan than some may think.

Liberal Senator Carl Levin, D Michigan, such a page by the industry, saying that even the reduced 56 mpg target is too high. On the other hand, a group of 15 prominent Republicans, including former Governors, members of Congress and EPA administrators, the White House last week at the full wrote back 62 mpg target.

With consumers so worried about fuel prices there are only a few, who expect that the CAFE debate is put back on the back burner. It is unclear whether the new proposal is the point at which the White House expects to start collective bargaining with the automotive industry, or if it looks 56 mpg than the compromise it is prepared to settle as.

Administration representatives have officials from the automotive industry, Capitol Hill leaders allegedly and others meet in the last few days with has been hoping to take the political temperature.

White House "has made no decision, but our goal remains, [a revised mileage] to propose rule this September," said spokesman Matt teaching I.

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