New Standards For Vehicles Being Set By EPA & USDOT

By Richard West on April 4, 2010, 7:04 am

The standards set on April 1st are the first of their kind to regulate the manufacture of cars and light trucks in an attempt to reduce greenhouse gas emissions. Over the next six years, these rules will be implemented in their entirety as with each succeeding year, efficiency improvement must increase by about 5%. The target average fuel consumption is about 35 miles per gallon. Company’s like Ford (NYSE:F), General Motors (NYSE:GM),Toyota (NYSE:TM) and Honda (NYSE:HMC) are already on the way.

Estimated Fuel Savings

The EPA and DOT estimate saved fuel consumption over the life of a vehicle with these new standards to be $3000, but the life of every vehicle varies, and most car owners do not own a vehicle for its life, so the statistics revealed do not give an indication of how much the average mileage driver might save while he owns the car. What can be roughly determined is that if an average car lasts ten years, the savings will be about $300 per year.

Cost Of Manufacturing Offsets Fuel Savings

Of course, the fuel efficiency does not come without a cost, and it is estimated that the manufacture of each vehicle will increase just under $1000. This will raise the showroom price of new cars, making the fuel consumption savings negligible for the first year of ownership. There are some who are criticizing the bill, including Oklahoma’s outspoken Republican Senator, James Inhofe. He is working to overturn the decision.

 

Standards Combined

The bill combines pre-existing standards of cars and trucks with the new standards. Prior to this ruling, the DOT and the EPA had separate standards. This new ruling also takes the power to set other standards away from the individual states and conforms all of them to this new national policy.

Related posts:

1. Mazda Innovates Into US Diesel Auto Market For 2012
2. Obama Green Plan Will Push Gasoline To $7 A Gallon
3. Obamas Cap And Trade: An Energy License To Sell Your Home
4. Luxury Is The Name Of The Game With 2011 MKZ From Ford
5. Microsoft & Ford Combine Forces To Boost Electric-Car Technology