New car fuel economy standards can mean more money in your Pocket

John Egan

2025, New cars and trucks sold in the United States will get a big boost in fuel economy - which could mean thousands of dollars in savings for the average American motorist.

July 29, 2011, President Obama unveiled fuel economy standards that will require cars and trucks to get an average of 54.5 miles per gallon by 2025. The new standards apply to cars and trucks for the 2017 through 2025 years.

Lisa Jackson, administrator of the Agency of Environmental Protection, as the new standards will help to "break" U.S. dependence on foreign oil.

In 2010, the Federal Government is bumped to the necessary miles per gallon of 35.5 for 2016 model year. The current standard is 27.5 miles per gallon.

Thirteen major automakers have agreed "in principle" 2017-25 standards, which have yet to be finalized.

It is far too early to say how to inaugurate a new era of energy-efficient cars and trucks will affect auto insurance rates.

Obama says that the new standards will be reduce oil consumption and reduce air pollution. By 2025, new standards should save an estimated amount of $8,200 in fuel costs over the life of a new vehicle, compared to the standard for the year 2010.

The new standards were developed by federal, builders, Union leaders, environmentalists and other organizations.

"Another important step."

"It is another important step to save money for drivers, breaking our dependence on oil imports and to clean up the air we breathe," says Lisa Jackson, administrator of the Environmental Protection Agency. "American consumers are demanding cleaner cars which pollute the air or break their budgets to the fuel pump, and our innovative American manufacturers responded with plans for some of the vehicles more energy efficient in our history.".

Automakers who have accepted new standards are Ford, GM, Chrysler, BMW, Honda, Hyundai, Jaguar and Land Rover, Kia, Mazda, Mitsubishi, Nissan, Toyota and Volvo. Together, these car manufacturers account for more than 90 per cent of all vehicles sold in the United States.

Among the automakers absent from the list are Fiat, Mercedes-Benz and Volkswagen.

Automakers, environmentalists United

In a statement, GM said: "reduction of fuel consumption and reduce the impact of the automobile on the environment are important for our business because it is important to our country and our customers."

James Lentz, President and CEO of Toyota Motor Sales USA Inc., says that his company shared the objective of the administration of the Obama to make significant progress in the production of fuel efficient cars and trucks.

"Obviously, there is always uncertainty as to how it will react to the market and that consumers vehicle technologies will be adopted, that is why we are rolling out and test a range of options for alternative fuels," Lentz said.

Michael Brown, Executive Director of the Sierra Club, a non-profit environmental group, says that "after years of inaction and stagnation,"Obama ensured the 15 years of steady progress"to" help reduce our dangerous dependence on oil, create jobs in America, save money for families at the pump, curb deadly pollution tackle climate disruption and. "."

Standards might mean bleeds

Not everyone is happy about the new fuel economy standards.

The American Road & transportation Builders Association States that its analysis shows that between 2017 and 2025, the new fuel would result in the loss of more than $ 65 billion in federal funding for the road, improved bridge and transit through the country. Reasoning of the association: as the least amount of fuel would be used by motorists, less revenue would be generated from fuel taxes.

Like everyone, we are in favour of efforts to reduce carbon emissions and improve fuel economy. However, from the point of view of public policy, it is a classic case of the left hand not knowing what the right hand, "says Pete Ruane, Chairman of the construction trade group.

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