U.S. Government Considering 74mpg Target For 2025
The Obama administration is coming under increasing pressure from environmental groups to introduce strict new Corporate Average Fuel Economy (CAFE) figures that would require new cars to return 74mpg by 2025.
A number of influential U.S. groups including the California Air Resources Board are trying to see the 74mpg target proposal become law as early as next year. The decision will have a major impact on European premium car makers including BMW, Mercedes Benz and Audi who would be forced to achieve the 74mpg as an average across their entire model lineups. The reality if the new law was passed would largely see anything bigger than a VW Golf would need to be a plug-in hybrid or incorporate a range extending electric drivetrain.
The U.S. government is set to propose new CAFE legislation in September for the period 2017 to 2025. The less extreme proposal being considered woul see improvements in corporate fuel economy of 3% every year for the 7 years leading up to a 56mpg average.
A number of automotive industry analysts have predicted that the 74mpg target will force up the average cost of a car by between $6,500 and $10,000 in today’s money. The Alliance of Automobile Manufacturers which is a U.S. based organisation has warned that a sharp rise in new car prices would lead to as much as a 25% slump in sales and subsequent job losses.