Recently, the Obama administration issued a statement that could alter the entire automotive industry. Set forth are new fuel efficiency standards that the White House wants all U.S. vehicles to meet. The new corporate average fuel economy (CAFE) standards ask that all manufactures deliver an average fuel economy of 54.5 mpg. The time date for this goal: 2025. The current CAFE standards are requiring automakers to reach an average of 34.5 mpg by 2016.
So far, not every auto manufacture has agreed to this proposal. The heavy-hitters in the industry however have, issuing statements regarding the lofty standards. Here is what some of them are saying.
Toyota Motor Company.
James Lentz, President of Toyota Motor Sales USA said, “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. We share the Administration’s goal of achieving major advances in clean, fuel efficient vehicles. Obviously, there is still a great deal of uncertainty as to how the market will respond and what vehicle technologies consumers will embrace, which is why we are rolling out and testing a range of alternative fuel options.”
Honda North America
“Honda has long been a leader in, and advocate for, reducing petroleum consumption and greenhouse gas emissions. Honda embraces this new challenge and we welcome the competition we will have with other automakers that will result from these new standards, because it will benefit both our customers and the health of the planet,” said John Mendel, American Honda Vice President of Sales.
Nissan Americas
“The Obama administration has issued some extremely challenging greenhouse gas reduction and fuel economy improvement targets, but Nissan is a company built on innovation and we’re up to the task. Nissan’s recent product introductions – including the all-electric Nissan LEAF, the Infiniti M Hybrid and improvements to internal-combustion technology – demonstrate our multifaceted approach to meeting consumer demand for increased fuel economy across our product lineup and to achieving these rigorous targets. We’re looking forward to helping achieve the Administration’s goals under one national standard, which supports long-term planning and technology development,” said Scott Becker, Senior Vice President for Administration and Finance of Nissan Americas.
Chrysler Group LLC
“Chrysler Group supports in principal the agreement on proposed fuel economy standards from 2017 through 2025 under a continued National Program. We remain committed to the goal of a single, national, and coordinated program that will reduce greenhouse gas emissions, and enhance our country’s energy security.
While the proposed targets are ambitious, the agreement provides a flexibility in achieving CO2-reduction goals that allows us to invest in the development of more fuel-efficient technologies and continue our rich history of creating compelling products that appeal to a wide variety of consumer needs and tastes.”
General Motors
“General Motors has agreed in principle on proposed fuel economy standards from 2017 through 2025. This proposed rule presents a path forward that greatly improves fuel economy while preserving customer choice and future industry growth. GM plans to pursue the technical challenge ahead and to lead in delivering new fuel-saving technologies in cars and trucks customers want to buy and can afford.
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 conditions.”
As noted earlier, not all manufactures have issued statements agreeing to the new standards. Some simply have yet to mention anything while others have actually criticized the proposal. Mercedes-Benz mentioned that the 2025 CAFE standards could cause negative side effects in the form of excessive cost.
