According to a recent article in the Detroit News the Obama administration is considering a mandate that cars and light trucks achieve a 56.2 miles-per-gallon average fuel consumption rating by 2025. The increase could add up to an additional $2100 or more price increase to each vehicle alone. The proposal on the table suggests that the rating would come in incremental steps of 5% increases each year over the next 8 years.
Currently, passenger cars must have an average 30.2 mpg while light trucks are required to achieve 24.1 mpg. The administration’s proposal is intended to reduce greenhouse emissions, but many believe that it will requirement fundamental changes in the way Americans currently use their vehicles.
GM, Ford, Chrysler, Toyota, and eight other automakers are all stating that the proposal will lead to massive job losses and will cripple the industry. The 12 automakers, working through the Alliance of Automobile Manufacturers lobbying group, are now running radio ads to notify the public of the harm the nearly 60mpg standard could do to the industry.
Gloria Bergquist, a spokeswoman for the Alliance of Automobile Manufacturers lobbying group was quoted as saying, “Today’s policymakers have a process under way to develop data-driven standards that avoid higher car prices, job losses and government deciding what Americans drive. We need to let that process work.”