Talk Of Raising Fuel Economy Standards Opens Up American Wound

Talk Of Raising Fuel Economy Standards,  CAFE Corporate Average Fuel Economy

 

Fuel economy standards is a debate that’s been heating up over the years. It started way back in the 1970s during the nation’s first true gas crisis and has continued on today.

 

Here are a few of the hot button issues:

• Many Americans are concerned about our dependence on foreign energy and oil.


• By raising fuel economy standards consumers can realize big savings in the price of gasoline they use to power their vehicles.


• Fuel economy is a heated political issue involving Republicans, Democrats, business leaders and environmentalists

 

When gas hit $5 per gallon in some parts of the country, did you throw caution to the wind and continue driving that Hummer or Chevy Suburban?

To be fair, gas has come down from that mountain of crisis, meaning you’ve probably climbed down from that window ledge, as well. Not long ago the government sought to increase federally mandated fuel economy standards so that people would get better gas mileage on their cars. Today, car makers must plan to achieve 35.5 miles per gallon for cars entering model year 2016, an increase from the 27.3 mpg slated for 2011. This applies for light trucks also.

 

Where does this leave the big gas-guzzling SUVs, full-size trucks and other V-8 engine types?

• Well, for starters, it may mean they’re likely to be jumping off a bridge when 2016 rolls around.


• At some point it’s difficult to make money on a vehicle with a large engine that must meet such strict fuel economy standards.


• And the bottom line for all car companies today is that it’s never been more important to design a vehicle lineup that not only fulfills demand but also makes good business sense.


• Gone are the days of having dozens of brands and vehicle types just for the sake of expanding the business.

 

Ever since the $5 per gallon gas crisis LeaseTrader.com has seen its fair share of customers looking to escape their large SUV vehicle leases in favor of more fuel-conscious vehicles. Hummer is a dying breed on LeaseTrader.com, just as it is on American roads. Lease Specials transfers on large vehicles still occur because the second lessee is interested in getting a good deal on a short-term deal – no matter the size of the vehicle. But make no mistake, very few are signing up for a 60-month contract on a Hummer at the retail showroom.

Also consider that large trucks and SUVs now make up only four percent of all vehicles on the road. However, even at such a small level they still represent nearly 20 percent of fuel consumption here in the U.S.

Plenty of political maneuvering plays a large role when it comes to fuel economy standards. Unions, business leaders and environmentalists all have a growing stake in fuel economy standards, which means Big Government will continue to be involved in this area of Big Business. Clearly, unions want to save jobs, business leaders want to make profit and environmentalists want to clear the air. When all three forces play a large role, there’s sure to be lots of confusion – and delays.

Where does the general American public reside on this issue? It’s coming into focus considering a Consumer Federation of America survey recently pointed out that 65 percent of those polled would like to see a 50 mpg fuel economy standard by the year 2025.