The Bush administration was slated to make a final ruling on fuel economy standards before leaving office, but a tough economy and the recent Detroit bailout has forced the current administration to punt the decision to the Obama administration.
Although President Bush has already signed off on an energy bill that will require automakers to meet a 35 mpg fleetwide average by 2020, step ups to that final figure have yet to be decided on. “The recent financial difficulties of the automobile industry will require the next administration to conduct a thorough review of matters affecting the industry,†the U.S. Department of Transportation said in a statement. As of now, CAFE requirements for 2011-15 have not been set, according to Automotive News.
The National Highway Traffic Safety Administration has proposed a 25 percent increase in fuel economy by the end of the 2011-15 period – compared to 2009’s standard of 27.5 mpg for cars and 23.1 mpg for light trucks – but some are fearful of what such a sharp increase could do to such a fragile industry. It’s estimated that a 25 percent increase in fuel economy standards would cost the industry about $47 billion.
With the NHTSA required to give the auto industry at least an 18 month lead time on new requirements, the Obama administration will have to work quickly to come up with a decision by April 1st. If the new administration can’t make the April 1st deadline, it will not be able to impose new standards for the 2011 model year, which have to be in by October 1st, 2010.
Automakers are obviously eagerly awaiting a decision as it will great affect their future product planning. Hopefully President-elect Obama will be able to come to a quick decision on the matter, which would be best for all parties involved.
