By decree of the Obama Administration, passenger cars and trucks in the U.S. will require a fuel economy equivalent of 54.5 miles per gallon by 2025.
The new fuel-efficiency standard will affect cars starting in 2017, meaning automakers will need to start making incremental increases in fuel efficiency to hit a combined average of 34.1 mpg within five years. By 2025, the goal is to approximately double the efficiency of today’s vehicles, and the new requirement has the support of 13 major car manufacturers, which account for 90 percent of all vehicles sold in the U.S.
Look for an influx of car technology over the next few years as manufacturers try to squeeze more miles from a gallon by reducing weight and supplementing with electric motors. Incentives will go specifically to early adopters of plug-in hybrids, natural gas vehicles, and hybrid pickup trucks. The government will give manufacturers credits attesting to their compliance with the new regulation if they invest capital in new technology.
As a consumer, watch for sticker prices to rise to compensate for the ventures made by the big car brands. But, the government said, the fuel savings will well offset any price spikes. The Obama Administration estimates that a vehicle built under these new regulations will save the owner over $8,000 in gas during its lifetime. For a car purchased in 2025, the White House said, “The net savings will be comparable to lowering the price of gasoline by approximately $1 per gallon.” They said those figures add up to U.S. drivers saving over $1.7 trillion in gas costs collectively by 2025.
Consumer costs aside, the regulations are projected to cut U.S. oil consumption by 12 billion barrels, or 2 million barrels a day by 2025 – approximately half of the United States’ OPEC imports. For the environmental benefit, the Obama Administration estimates an emission reduction to the tune of 6 billion metric tons by 2025, and a growth of domestic jobs in the auto industry.
The requirement builds on the administration’s requirements for model years 2011-2016, which raised average fuel efficiency by 2016 to the equivalent of 35.5 mpg. “These fuel standards represent the single most important step we’ve ever taken to reduce our dependence on foreign oil,” said President Obama. “It’ll strengthen our nation’s energy security, it’s good for middle class families and it will help create an economy built to last.”Go Back to Top. Skip To: Start of Article.