Thursday, November 18, 2010

MPG, EPA and SUV

New EPA data released yesterday demonstrates how a recession can affect buying habits of consumers and overall mileage ratings. Also, the Obama administration has been working on increasing average MPG numbers for years to come.

New 2009 models have been reported to be 7% more efficient than the vehicles sold in 2008, on average. It has been reported to be the largest increase in average fuel efficiently in the last three decades. All major automakers had increased their average fuel efficiency of their model lineup, except for Chrysler which sold more SUVs and pickups in 2009 than smaller cars. Automakers with the highest increase in mileage numbers include Japanese companies like Toyota and Nissan.

On average 2009 cars and trucks are lighter too, with average car weight decreasing by 4% and truck weight shedding an average of 100 pounds.

At the same time, the White House is making plans for sweeping new standards starting in 2017. They currently have in place a goal of 35.5 mpg (on average) for 2016. However, many wonder if these numbers would have looked so good to environmentalist if there wasn’t a recession. Projections for 2010 show no real improvement as gas prices are going down, the economy is recovering and people feel more comfortable buying bigger cars.

What I find surprising, and somewhat baffling, is why these numbers are such improved. Most people who know anything about the industry realize it takes many years to totally revamp a model lineup. Essentially making most of the models available for 2008 the same that were in the showroom in 2009. Clearly these numbers are driven by what kinds of vehicles are popular in a given year. High fuel prices and an uncertain economy made 2009 the year people bought small but it doesn’t seem this trend will continue.

I really don’t believe in fuel economy standards and I think they blind automakers to doing what they really need to do—improve the overall automobile. As the last few years have shown, gas prices are the biggest driving force in more fuel efficient cars sales. It is at these times when consumers demand better mileage ratings and new fuel technologies. If automakers must follow government guidelines, showrooms will be full of small cars no one wants just to keep average mileage numbers down to satsidy government standards. The result is freakish products like the Aston Martin Cygnet which is designed to balance out averages with Aston Martin’s gas-guzzling super cars. Simply put, if government really wants to get more fuel efficient cars on the road, they should increase gas prices through taxation. It would be effective but not welcomed by anyone.



http://www.nytimes.com/2010/11/18/business/energy-environment/18fuel.html?src=busln

2 comments:

  1. What do you think would be the after shock effects of increasing gas prices in the United States? I believe that would be a clever method to manipulate consumer demand and corporate interests

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  2. I agree that fuel standards are unnecessary. Cars will build efficient cars because consumers want them, not because the government forces them. Safety standards should be the governments primary concern when regulating the auto industry.

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