Earlier this week, new regulations regarding Corporate Average Fuel Economy (CAFE) standards for 2025 were passed after much wrangling between politicians and automakers.
These new standards, which have been mandated by the Department of Transportation (DOT) and the Environmental Protection Agency (EPA) will require automaker’s vehicles (both cars and light trucks) to achieve an average 54.4 miles per gallon by 2025.
At first glance, the mandate from the EPA and DOT seems like a rather large target to hit in a particularly short amount of time. Even the most fuel efficient gasoline vehicles struggle to approach that figure, with only a few hybrid-electric vehicles coming close. Needless the so say, the idea that larger trucks and sedans will be able to match the government’s mandate is something we’re equally skeptical and excited to see. In all likelihood automakers are going to have to put in a lot of effort and resources in order to achieving this.
Regardless of what this might mean for the likes of Ford, Volkswagen, Toyota, Honda, GM, their designers, and their engineers. What do the new CAFE standards spell for you? As it turns out, quite a lot.
In order to illustrate how the new standards will affect the average driver, we have laid out four ways in which increasing CAFE standards will likely affect the most important person. You.
Pay less at the pump
As you might have already guessed, the first major benefit to increased CAFE standards will be a reduction in how much you pay at the pump. While it’s a harsh reality that gas prices continue to climb, drop, and climb back up again, (and let’s be honest: that trend is unlikely to stop anytime soon) the tradeoff is that with greater fuel economy comes a lower premium paid at the pump. More miles mean fewer trips to the gas station.
Is it 2025 yet? Well, no, but that doesn’t mean we won’t be reaping the benefits from now until then. The year 2025 might be 13 years away, but as automakers gradually ramp up fuel economy in the coming years, expect those savings to start piling up as well. But won’t car prices increase as well? That is true, though the cost of new cars is expected to rise by roughly $1,800 to meet the new demands, it is estimated that drivers could save $8,000 in gasoline costs during the life of their vehicle.
Superior cars
Although somewhat of a no-brainer, in order for cars to reach greater levels of fuel economy, they are simply going to have to get better and more efficient. Some of these improvements, like the recent trend to use smaller engine displacements with turbocharging, have helped with fuel economy, but that won’t be the end of it.
If automakers are truly going to reach the standard set forth by the EPA and DOT then they are going to have to improve aspects of future models across the board. That means we’ll start seeing stronger, more lightweight materials, improved aerodynamics, and even newer, more exciting technology creeping in.
Job creation
With all the research and development it will take to steadily increase the average fuel economy for each automaker, it’s safe to reason that more jobs will be created to accommodate new parts and technology into the existing automotive framework. How many new jobs? Recent research from the National Resource Defense Council estimates as many as 570,000 new jobs could be created as a result of the new government regulations.
A wealth of options
The automotive market is both vast and varied. There are cars sitting on a lot right now that will cater to, and fit, your lifestyle needs with little trouble. However, for those hunting for a truly fuel-efficient vehicle, one that encroaches on the impending CAFE standards of the future, that choice remains rather limited. You can purchase a gasoline hybrid, like a Toyota Prius, a plug-in hybrid such as the Chevrolet Volt, or forgo gasoline altogether with a battery-electric car like a Nissan Leaf.
But what if your automotive needs go beyond a small-to-midsized hatchback? Currently, there are many segments that lack diesel, hybrid, or all-electric drivetrains. With the eventual increase in CAFE standards, don’t be surprised to see an all-electric pickup or even a hybrid drivetrain make its way into an FRS-styled sportscar. Bottom line, there will be a lot more to choose from, and that’s going to be great.
How will cafe stds affect me? Very little actually. With our LEAF 75%+ of our family mileage is already electric. When Ford and Mitsubishi bring out phev suv’s this year and next, we should be able to do 90%+ on electric by trading the gas burner we have now.
BTW, new car markets like India and China are purchasing more gas and oil products so I do not think gas will go back down in the U.S. If we use less, then other markets still have demands.
Yes. This will eventually put a big strain on power/electric companies ability to make power for electric vehicles and will increase the costs to build more power plants. In the long run, I think we will be paying more for cars and more for anything that runs them. I read about solar power being harnessed then saved with old battery packs from the Prius so that a person can have power at night time. This will be an interesting time for the government, power companies,auto manufacturers and consumers.
Speaking as someone who is infinitely fascinated by new technology, but also concerned about the environment I am glad that the government has stepped in and mandated that auto industry gets its act together and start building cars that are more efficient in all aspects, not just in regards to fuel economy. The new mandates might seem harsh,but its just the right kick in the pants the auto companies need.
seriously, you people are funny. If all cars consume less…all the big oil companies are going to do is increase the price of oil. You’ll end up paying the same amount at the pump. But you’ll be more green I guess in the end right? Just don’t expect to save that much money. If cars consume 50% of what they consume today…expect oil prices to increase by 50%. That’s how it works.
Sounds like this article was written by the Whitehouse spin room. Better technology – I’m all for that. A government that thinks they can wave a pen any “solve” a problem – I’m all for voting that out!
Not necessarily. As I understand it, part of meeting those CAFE standards will entail building cars that don’t run on petrol at all. As more and more car companies build cars that will go farther and do so with a battery, the need to purchase oil as a fuel source can, and will, diminish.
Reverse your argument and what would happen if autos were less efficient? The price of gas would go down? Of course not, more demand would mean higher prices. That’s how it works. You have it backwards.
I understand your point. But it doesn’t always work with supply and demand. It works by opportunity. They’ll see an opportunity to make more profit…they’ll take it. Simple as that. Maybe I’m being paranoid…but cautiously optimistic is the word.
I was just wondering about that myself…