Obama to Call for 35.5 MPG Standard by 2016

May 18, 2009

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President Obama is expected to announce much higher mileage standards for cars sold in the U.S. market, beginning in 2012 and ramping up by 2016.

By 2016, every carmaker’s Corporate Average Fleet Economy (CAFE) would have to be 35.5 miles per gallon, weighted by sales, according to Bloomberg. By 2016, light trucks would have to meet a standard of 30 mpg, and the average for cars would be 39 mpg.

Congress in 2007 approved a measure requiring automakers to meet a target of 35 mpg by 2020, so Obama’s standard accelerates the effort.

Obama hopes to set a national standard to avoid a patchwork of differing state standards. California, which has sought a federal waiver to set its own greenhouse-gas emissions standard under state law, has agreed to defer to Obama’s national standard, reports Reuters.

In related news, House Democrats on May 18 proposed doubling the amount of loans to U.S. automakers to promote research into fuel-efficient vehicles.

Detroit had sought $50 billion last fall but Congress approved $25 billion. The new request is for $50 billion, according to the Detroit Free Press.

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Reader Comments

It’s amazing. The best sales people in the world are these auto industry guys. Another $50 billion for something they already know how to do. My father worked at Ford in the 60’s and he told me they had a carborator that produced 70 MPG. It is a no brainer! Why aren’t we changing consuumers habits instead? For example, plastic bags are virtually banned in the retail industry. Why do SUVs and gas guzzlers continue to be made? Take away the option, the choice. The vehicle will still be sold, just not the proverbial Hummer. Why are we giving ANOTHER 7 years and $50B to these clowns to fix something they can fix tomorrow? Japanese cars all average in this range of mileage. The US automakers use Mazda and Toyota platforms for their “efficient cars”. The Ford Focus is a Mazda, the GM Vibe is a Toyota. And why do they need $50 billion? To buy a license to produce a Chevy Prius knock off, or a Pontiac Insight? Ford seems to be the only original one on the block with the Fusion Hybrid, but it is bloody expensive. And what happened to the Chevy Volt? Why not just size the Volt mechanics to match the vehicle size? It seems to me that the auto industry is about to produce 35+ mpg cars…but now because the govt is forcing a standard, they get to steal another $50B from taxpayers? Yes, sorry, “loans”…but based on the debt they already have, and the fact they are becoming a US Govt owned company, who is the money actually being loaned to and who is actually “paying it back”?
Rant over…

Iain Robertson | May 19th, 2009