More miles less money?

"Landep News"

More miles less money?

The recently started negotiations between the car manufacturers and the Obama administration regarding the accepted mileage and emission level for new vehicles will have an impact on the future cars produced.

The result of this negotiation may be the key to significantly reduce gas emissions and global warming as a direct consequence. Depending on how strict the measures will be the necessity of importing oil may be reduced by billions of barrels. Therefore, the Obama administration is suggesting an average fuel consumption for all newly produced American cars and trucks of 56.2 miles per gallon that should be achieved by 2025. That’s almost double in comparison with the current level. These figures would put a lot of pressure on car manufacturers that would have to ensure a 5 percent increase in fuel efficiency every year between 2017 and 2025.

Although, the measure would result in savings for Americans and would mean a fuel efficiency of domestic vehicles compared to that of vehicles in Europe and Japan, carmakers warn the authorities that even if the goal is achievable, the costs involved are huge. We are talking about billions of dollars involved in research. In addition, even if the technology can be developed, the price tag of such a vehicle may prove too costly for the average American.

The negotiations will continue until September when a proposed standard will be announced. The carmakers are asking for a gradual phases and close monitoring of the process with the purpose of keeping under control the costs. They are also asking governmental help for building the necessary charging stations.

Considering that Europe will be able to get to 60 mpg per gallon by 2020, the United States is a step back because of the current tolerant limit of 10 mpg per gallon. But even the authorities admitted that the process of deciding on a reasonable mileage is difficult because they also need to take into consideration the recession that has seriously affected the industry. That’s a point of view that carmakers also agree on. There’s no question that the situation is challenging, but as the president of General Motors North America said “it’s up to us as engineers to provide high value to the customer and support the environment.”.

These are decisions important for the future. As consumers, we all have something to say, so if a better fuel economy will mean higher prices for new cars, will you be willing to invest in such products and support the auto industry?

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