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Corporate Average Fuel Economy Standards May Double Fuel Efficiency

A series of media sources have reported that new rules for what the fuel economy standards should be have been issued by the Obama administration on Tuesday.

The requirements would push the automobile industry to design and manufacture vehicles that would average a fuel mileage that would simply double what is currently seen in 2012 models. According to the news, the current administration has set the standards of new cars to 54.5 miles per gallon, which would reportedly save the drivers’s money at the pump a great deal.

The new requirements were developed by the National Highway Traffic Safety Administration with the help of the Environmental Protection Agency, according to the Obama administration. The new rules hope to see an increase in the manufacturing and selling of vehicles that average 54.5 miles per gallon, which would be a rule of thumb by 2025, in spite of what opposition says.

According to the news, multiple auto experts have stepped out to express their concern with CAFE (Corporate Average Fuel Economy) and what this new set of standards could mean to consumers. Some oppose strongly to the new set of rules because they do not allow consumers to set the standards, which could lead to a massive production of vehicles that drivers simply won’t buy. Automakers, however, are excited about the new standards and have showed all of their support to Obama’s CAFE.

Some estimate that the fuel efficiency standard would keep the country from purchasing about 12 billion barrels of oil a year, which could lead to technology development that would allow Americans to be independent from foreign oil and would push automakers to start utilizing more alternative fuel sources.

The auto industry feels this is their moment, according to the news. The auto making business would be propelled because the industry would be manufacturing vehicles that would give Americans relief when it comes to the amount of money they spend with volatile fuel prices.

Lawmakers hope that lowering the overall cost of driving a vehicle will push drivers to purchase newer vehicles, which would in exchange, expand the market.

Still, many experts debate over what would be more interesting to consumers. According to recent studies, consumers have showed willingness to purchase more fuel-efficient vehicles but have not showed any signs of wanting to own or support vehicle models that are extremely fuel efficient but lack certain popular features like performance, comfort and space.

For more details on the new fuel efficiency standards, click here for the full story on CAFE.

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The Vachon Law Firm is based in Southern California and focuses exclusively on consumer protection litigation.