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Ford, GM Sign On As White House Unveils 54.5mpg Standard

General Motors and Ford have signed off on a deal to increase fuel efficiency to 54.5 miles per gallon by 2025.

The Detroit News reports that the two auto giants are the first to sign memorandums of understanding on the 2017-2015 fuel efficiency standards, and that other carmakers are preparing to sign MOUs by the end of the day.

The federal government is preparing MOUs that reflect a last-minute change to the agreement, the newspaper said, after talks with automakers and the state of California went on until 1 a.m. this morning.

Hyundai U.S. chief John Krafcik told the paper the deal would “right-size the fleet. There are going to be fewer vehicles over there bought for the occasional need to carry nine people or seven people.”

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4 thoughts on “Ford, GM Sign On As White House Unveils 54.5mpg Standard

  1. This sounds like good news. We really need these big companies who have such a great impact on the industry to step up to the plate and show their commitment to help out the environment. This usually has a positive ripple effect through the industry and encourages more people and other companies to do their part as well.

  2. Fuel standards are a poor way to reduce GHGs, reduce dependence on foreign oil, and the like. When it becomes cheaper for people to drive (via greater MPG) they drive more. Obama seems to just be pandering to the greens, with inefficient economic policies. Every economist knows that market-based incentives (i.e taxes and subsidies) are the BEST way government can intervene in the private sector. One might argue that ‘taxes’ are dead on arrival, but they are only dead on arrival because Obama hasn’t fought for them. The republican presidential field is weak, his competition is weak, lets see the ‘change’ we voted for instead of the usual, minimal, environmentalism that the Obama administration is building a reputation for.

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