Ford CEO told Trump 1 million jobs at stake because of fuel economy regs

Bloomberg is reporting that Mark Fields, Ford's CEO, pushed President Donald Trump for market-driven national fuel economy standards, and that up to a million jobs could be at stake if those national regulations didn't take consumer expectations into account.

Fields was reporting on his conversation with Trump in remarks made at the National Automobile Dealers Association in New Orleans, Bloomberg reports. The report also states that he and fellow CEOs Mary Barra of GM and Sergio Marchionne of FCA aren't seeking to eliminate fuel economy standards altogether, but rather to make them more flexible.

Bloomberg reports that Fields didn't cite the studies he was referring to in support of his job loss figures, so we can't independently verify Fields' math at this time. But his push to stop selling cars consumers don't want – that is to say, more hybrids and EVs than consumer demand supports right now – is clear. We've already reported on that.

To level an educated guess at what will happen next, Trump seems likely to reduce the stringent 2025 fuel economy targets, perhaps freezing them at current levels. The automakers are already invested in producing vehicles that meet current standards, and they also have to think about foreign markets like Europe that aren't likely to relax standards below current levels. If you consider economies of scale, automakers are likely to ask for federal standards that match global standards for their largest markets as closely as possible.

We'll see if Trump buys Fields' math, but Ford isn't hedging its bets. Backing out of the Mexican assembly plantcost the company $200 million – not a huge sum compared to the total value of Ford, a massive company which had its second best year ever, but still an important gesture to Trump about Ford's priorities.

Trump Meets US Car Company Execs: Who Said What And Why

Donald Trump held a meeting with all three US car company chief executives yesterday — Mary Barra, CEO of General Motors, Mark  Fields, CEO of Ford, and Sergio Marchionne, CEO of Fiat Chrysler. Prior to the meeting Trump tweeted, “I want new plants to be built here for cars sold here!” The three US car company leaders were only too happy to raise their voices in unison to praise Trump and his grand vision.

Body language speaks louder than words. Barra, Marchionne, Fields after meeting with Donald Trump. Photo credit: Reuters

“He looks forward to hearing their ideas, on how we can work together to bring more jobs back to this industry in particular,” White House press secretary Sean Spicer said. That would be the same Sean Spicer who two days ago stood up in the White House press room and blatantly lied about the size of the crowd during the inauguration.

Trump is an environmentalist

Trump told the group,  “I am to a large extent an environmentalist. I believe in it, but it’s out of control.” Trump is a man who knows a thing or two about being out of control. Today, he has announced plans to ram through both the Dakota Access pipeline and the moribund Keystone XL pipeline, proving that his brand of environmentalism is all about burning more fossil fuels and fattening the profits of oil company executives.

After the meeting with domestic car company execs, Barra told the press it was “very constructive and wide-ranging,” saying it focused on “policies that support a strong and competitive economy and auto industry,” and “that support the environment and safety and jobs creation.”

Fields was effusive in his praise. Having been slapped around by Trump because of Ford’s manufacturing plants in Mexico, Fields showed he was a quick study who knew how to sing from the Trump hymnal when required. “We’re excited about working together with the president and his administration on tax policies, on regulation, and on trade to really create a renaissance in American manufacturing,” Fields said after the meeting.

Nothing in his remarks had anything specifically to say about making automobiles. Rather, they were in response to Trump’s decision to withdraw from the Trans Pacific Partnership. “We’ve repeatedly said that the mother of all trade barriers is currency manipulation, and TPP failed in meaningfully dealing with that, and we appreciate the president’s courage to walk away from a bad trade deal,” he said. The elephant in the room is China, which has been accused of currency manipulation ever since it embraced its own version of capitalism several decades ago.

Marchionne, who is openly seeking a buyer for Chrysler, chimed in with this: “I appreciate the President’s focus on making the US a great place to do business. We look forward to working with President Trump and members of Congress to strengthen American manufacturing.”

Cutting government regulations

Trump thumped his chest about one of his favorite topics — government regulations. “We think we can cut regulations by 75 percent. Maybe more,” Trump said. “When you want to expand your plant, or when Mark wants to come in and build a big massive plant, or when Dell wants to come in and do something monstrous and special — you’re going to have your approvals really fast.”

Predictably, he made no mention of which regulations he was referring to, but one can make some informed guesses. OSHA regulations that protect workers from losing body parts in pursuit of corporate profits would be a good place to start. Minimum wage and overtime pay provisions? Who needs them? Environmental limitations on  the use of toxic materials that protect workers from industrial hazards? They cost business a lot of money. Clean air and clean water requirements also cost corporations bigly.

The most important ones, of course, are any and all rules that force car makers to manufacture vehicles nobody wants to buy. That would include CAFE and tailpipe emissions standards. Get rid of them and American manufacturers would find it a lot easier to sell high profit cars and trucks that average 15 mpg or so instead of wasting precious resources on hybrid and plug-in hybrid technology. No need to plow scarce corporate cash into EV charging infrastructure. Let the good times roll.

Perhaps Barra and company can bring back the Hummer brand. Those were vehicles every red blooded American craved. Who wouldn’t want to commute in a big, rugged truck the size of an Abrams tank? Those were the days, folks, back before Democrats and tree huggers started shouting about climate change and global warming.

The curse of protectionism

Forget about melting ice sheets. Trump and his acolytes are relying on “alternate facts.” But there is more to this than just keeping the earth safe for human habitation. As Stef Schrader points out in Jalopnik, “If America wants to be ‘great,’ it needs to produce the greatest cars on earth, not cars that are just okay enough to get by within its own borders.” Gee, you mean American car companies should be concerned about selling cars in other countries? What a novel idea.

She points out that protectionism in the form of high tariffs keep good cars out and allows domestic manufacturers to build junk. Need an example? Look at the British car industry. Favored by high tariffs after World War II, it built a succession of increasingly inferior cars until it literally ceased to exist. Today, the only good parts of the British car industry are owned by foreign companies, most of them German. Go figure. What Hitler couldn’t do with his V-1 rockets, the British people did to themselves.

Schrader also has harsh words for a prior era of American protectionism. Following the 1979 oil embargo, American car companies pleaded for relief from the onslaught of well made, fuel efficient cars from Japan. What they got was a program known as “Voluntary  Export Restrictions” in which Japanese manufacturers supposedly agreed to limit the number of cars coming into the US.

As a result, claims Schrader, “Instead of simply making better cars to beat the likes of Honda and Toyota at their heown game, we ended up with domestically-made crapcans like the Chevrolet Citation II and the Chrysler K-cars.” She omitted the equally dreadful Ford Pinto.

The architect of the Voluntary Export Restrictions was one Robert Lighthizer. And who has The Donald tapped to be his lead trade representative? Robert Lighthizer. It’s back to the future all over again.

One other thing to keep in mind is that limiting competition inevitably raises prices. What will all those Trump cheerleaders have to say when the price of cars increases to pay the higher wages commanded by American workers? There’s a reason why Walmart is the largest retailer in the world and it doesn’t have anything to do with domestically produced goods.

There are two thoughts applicable here. One is, those who don’t know history are doomed to repeat it. The other is, be careful what you wish for. You just might get it.

Source: Autoblog, Automotive News

Details About Hyundai Ioniq Electric Car Emerge

Hyundai took center stage in green car news this week when its Ioniq Hybrid was confirmed by the EPA to have the highest fuel economy of any hybrid — 58 mpg combined. Move over, Toyota Prius Eco. There’s a new sheriff in town. Impressive, right?

Yes, it certainly is, but Hyundai has other things in mind for the Ioniq. In addition to a plug-in hybrid version coming next year, an all electric version will debut in 2017 as well. That car will offer many features not available from other electric car brands. Let’s start with the big news. Hyundai will offer a full lifetime guarantee on the battery in its electric car and in the plug-in hybrid. That should go a long way toward reassuring customers who worry about an expensive battery replacement in their future.

While it’s true that there are almost no news reports about battery replacements being a regular thing, people still think, “What if…..?” Those jitters were fueled in part by issues Nissan had with some of the batteries in early LEAFs, especially those in hot climates like Arizona. Even though Nissan stepped up to upgrade the battery and covered any needed replacements, it still left a doubt in peoples’ minds that lingers today.

I purchased a Toyota Prius in October, 2006. I had already made up my mind I would trade it in before the battery warranty ran out at 100,000 miles before I left the showroom and I did. The thought of spending thousands to replace the battery after the odometer turned into 6 digit territory made me very uncomfortable. This is very smart marketing by Hyundai. It totally takes one factor keeping people from buying an electric car completely out of the equation.

The other factor is price. As good as some of today’s electric and plug-in hybrid cars are, they are expensive compared to the garden variety Corollas and Civics that mainstream buyers can afford. The Ioniq Electric will have a relatively short 124 mile range. That is far more than 95% of drivers need on a daily basis but far less than offered by most of the competition. Will that stop people from buying one? It’s all about the price, isn’t it? With half the battery size of the Bolt and Tesla Model 3, the Ioniq Electric should sell for thousands less.

The Ioniq Electric can recharge in about four hours and 25 minutes. That’s faster than the six hours needed for the LEAF but slightly longer than the four hour charge time for the E-Golf. In quick charge mode, the Ioniq can get to an 80% state of charge in 23 minutes. That may give it a big advantage over the Chevy Bolt, which will not offer fast charging capability, at least not initially.

The Ioniq Electric is part of a broader effort by Hyundai to reach younger consumers who expect electrification to be baked into their cars. Millennials will account for 40% of new car purchases by 2020 and Hyundai believes they are more likely to consider alternative fuel vehicles than older shoppers.

Though stricter CAFE rules could change under President-elect Donald Trump, Hyundai thinks electrification will be part of a permanent shift in consumer preferences. Plug-ins  and electrics are better suited to urban areas than traditional gasoline or diesel engines and Millennials have demonstrated a preference to live in cities. “There’s a significant group of owners that still prioritize fuel economy,” said Mike O’Brien, Hyundai’s vice president of product, corporate, and digital planning.

Hyundai may be working a version of the Ioniq Electric with greater range for more money. Tesla has been quite successful offering its customers options when it comes to range and pricing. No doubt, Hyundai has been watching and learning from the upstart Silicon Valley automaker.

Source: AutoBlog   Photo credit: Hyundai

Volkswagen To Build Electric Cars In North America

Mired in a self imposed malaise composed of equal parts diesel exhaust and corporate malfeasance, Volkswagen is trying desperately to reposition itself as an electric car company and put the stink of its emissions cheating scandal behind it. During an interview near the company’s factory in Chattanooga, Tennessee recently, Hinrich Woebcken, the newest and latest head of Volkswagen’s US operations, confirmed the German auto maker plans to build electric vehicles in North America by 2020. “We believe that this country, especially in urban mobility, will have a very strong shift from petrol engines into hybridization and electric cars,” Mr. Woebcken said. “We are heavily investing in this one—including production in this North American region.”

Woebcken was short on details. He did not specify which models the company would build or where they would be built. In addition to the factory in Tennessee, Volkswagen also has a large production facility in Mexico. It would be good politics to build electric cars in the US to help mollify regulators who are threatening the company with billions in fines. The company has already agreed to pay nearly $15 billion to resolve legal claims brought by federal and state authorities.

Just yesterday, it was hit with civil law suits brought by the states of New York, Massachusetts, and Maryland seeking millions more. The attorneys general of those states allege senior officials conspired to mislead officials. After an exhaustive investigation, they say the fraud went all the way up to Martin Winterkorn, who was head of the company briefly before resigning in disgrace.

Last January, Volkswagen unveiled its BUDD-e concept car at the CES Show in Las Vegas. Featuring an all new chassis designed from the ground up for vehicles with all electric powertrains. It offers clues to the company’s pathway to the future.

Volkswagen’s plans to transition to electric cars is all well and good, but that leaves unanswered the question of who is going to buy them? Just yesterday, federal officials announced that automakers would get a reprieve from the proposed 54.5 mpg CAFE goal for 2025. In an announcement accompanying the release of a new Technical Assessment Report, the EPA and others said that manufacturers should be able to meet upcoming fuel economy standards using improved internal combustion engines. They won’t need hybrids, plug-in hybrids or electric cars to meet those goals, regulators say.

That can hardly be good news for a company that plans to dig itself out of a very deep hole by selling electric cars to the masses.

Source: Wall Street Journal    Photo credit: Volkswagen

Auto Makers Pushing For A Rethink Of Fuel Economy Standards

Auto makers are lobbying the federal government to rethink its mandate to raise average fuel economy to 54.5 mpg by 2025. The new rules are set to go into effect in 2018. The companies have several concerns about the tighter standards, but it all comes down to selling cars. They worry that consumers will not like the changes meeting the new rules will require and that will hurt sales. The car industry is hugely important to the US economy. A decline in sales could have a ripple effect that would take some of the steam out of an economy that is just showing signs of life after the debacle of 2008.

The debate about what to do with fuel economy standards dates back to the 70’s. Before that, gas was 60 cents a gallon, global warming was something only Al Gore worried about, and people were content to lumber around in big cars powered by V-8 engines. 4 cylinder cars were for wimps and losers. Then OPEC was formed and America went into cardiac arrest, economically speaking. CAFE, or Corporate Average Fuel Economy ratings, were orignally designed to help America break free of imported oil.

We went along with the plan because it was our patriotic duty. 4 cylinder cars were suddenly cool. Models like the original Volkswagen Rabbit GTI proved that being fuel efficient didn’t have to mean driving dull cars. Since then, the size of the vehicles Americans prefer has gone up and down in lockstep with fuel prices. Soon gas was cheap again. General Motors brought out its Hummer lineup, featuring thirsty ground pounders that looked like military assault vehicles. Ford countered with the F250 based Excursion. People couldn’t get enough of them.

Then 9/11 happened, followed closely by the collapse of the global economy engineered by the robber barons of Wall Street. Gas shot up to over $4.00 a gallon and Americans decided they really wanted small cars after all…for awhile. In late 2014, oil prices plummeted and gas was selling for under 2 bucks a gallon. The demand for larger, thirstier vehicles returned with a vengeance.

First CARB then the EPA stopped using fuel economy standards as a way to reduce dependence on foreign oil. Instead, they changed it into a tool for addressing the carbon  emissions being emitted by the transportation sector. In fact, fuel economy is a poor way of addressing emissions. The European Union takes a much more direct and honest approach with regulations that target emissions rather than mpg. The two are related, or course, but using fuel economy as a measuring stick only complicates the process.

The CAFE system has become grossly distorted over the years. For one thing, CAFE numbers are different for different categories of vehicles. The smaller the car, the higher the standard. The larger the vehicle, the lower its fuel economy can be and still comply with EPA targets. The upshot of that piece of bureaucratic brilliance is that Fiat Chrysler has decided to stop making smaller sedans with good fuel economy so it can concentrate on making large trucks and SUV with an outsize appetite for gasoline. The regulations end up encouraging manufacturers to make vehicles that pollute more rather than less. How stupid is that?

For another thing, CAFE numbers are calculated using the old formula. It was discarded years ago as the way to calculate the numbers you see on the window stickers of new cars because it had absolutely no relationship to real world mileage. If CAFE regulations used the more realistic method, the target would be about 20% less — 43.6 mpg instead of 54.5. Building cars that get 43.6 mpg seems fairly doable in a day when many passenger cars already get 35 mpg or better. After all, we are talking about 8 years from now. Surely car companies could find a way to wring 43.6 mpg out of their cars by then?

John Bozzella, CEO of the Association of Global Automakers, told the EPA and CARB recently he wants the upcoming analysis to review assumptions about fuel prices, consumer preferences, and technologies to see whether the targets are still feasible. He says ideas like start-stop systems and hybridization will be required to meet the higher standard. Customers will notice and that may hurt sales. “When we think about the really challenging standards out to 2025 … we’re talking about investments and strategies that are no longer invisible to customers,” Bozzella said.

Bozella also would like EPA, NHTSA, and CARB to harmonize their regulations, so automakers would have one clear goal, not three. That part makes eminently good sense, so much so that we can be sure the regulators will ignore it entirely. Common sense is rarely a component of the regulatory process.

The point this debate misses is that we need to reduce or eliminate carbon emissions from passenger vehicles. The car companies are really looking at the world through the wrong end of the telescope. It’s not about selling more and bigger cars that spew more pollution. It is about changing the driving habits of Americans. The lunatic fringe on the right screams about honest businessmen trying to make a living but being balked by heavy handed regulations. That’s not what this is about at all.

What is is about is avoiding a climatic catastrophe that will imperil the lives of billions of people.We have to stop dumping the effluent of civilization into our skies, our oceans, and our land. We have to stop injecting billions of gallons of contaminated water into the earth to release a few more molecules of natural gas. We have to stop burning coal. We have to stop selling cars with internal combustion engines. There is no other way.

Trying to accomplish all those things using CAFE as the main policy tool is just ridiculous. The only way for it happen is to make the cost of fossil fuels higher than the alternative. Then people will demand non-polluting cars without the need for regulations. Its time to stop fooling around with policies that don’t work and start devising mechanisms that do. Create the right economic incentives, then get out of the way and let the great unseen hand of the marketplace work its magic.

Source: Scientific American via Climatewire

What changes might green car policies see under a Romney presidency?

A downward-revised Corporate Average Fuel Economy (CAFE) standard and a push away from electric-drive vehicles and towards alt-fuel types such as natural gas may be some of the transportation measures in store if Mitt Romney beats Barack Obama in the US presidential election next month, Automotive Newsreports. A removal of tax credits for electric-vehicle buyers could also be on the table, says Hybrid Cars.

Romney has repeatedly taken issue with the updated CAFE mandate that was agreed to during the first Obama term. They call for a 54.5 miles per gallon fleetwide fuel economy level by 2025 (a real-world equivalent of about 40 miles per gallon), roughly a 30-percent increase from current levels. The standards would make new vehicles too expensive for many consumers, the National Automotive Dealers Association (NADA) has said. In late August, the federal government finalized the CAFE standards for model year 2017-2025. The 54.5 miles per gallon mandate was first proposed in July 2011.

Meanwhile, Romney, which hasn't detailed any alternative proposal to the CAFE standards, has suggested the federal government invest more in research and development and fewer government investments in automakers, whether they be traditional OEMs like Ford and Nissan or alt-fuel specialists like Tesla andFisker.



Source: Autoblog Green

Bloomberg says buyers, not automakers, should get more federal funding for plug-in vehicles

The U.S. government would be more effective at spurring plug-in vehicle sales if it provided more financial incentives to consumers instead of automakers. At least, that's the opinion in a Bloomberg News editorial.

Saying that finding alternatives to gasoline "a worthy public goal," Bloomberg says the government should expand purchasing incentives beyond the $7,500 it provides for buyers of some plug-ins and hybrids. President Obama has said he wants 1 million plug-in vehicles to be on U.S. roads by 2015; the Corporate Average Fuel Economy (CAFE) standards he proposed last year would mandate about a 70 percent fuel economy improvement by 2025. Bloomberg figures the government should hand out money to buyers, not companies, to encourage sales:

Providing loans to companies that can get their own financing in the capital markets is a questionable way to reach [the goal]. A better use of government money would be to encourage consumer demand – by continuing, and expanding, tax credits or other incentives for people who buy vehicles that use little or no gas.

During the past three years, U.S. Treasury Department's Federal Financing Bank has made more than $8 billion in loans at about a 1 percent interest rate to established automakers such as Ford and Nissan as well as advanced powertrain specialists like Fisker and Tesla, strictly for the purpose of developing electric-drive vehicles. Bloomberg called such a strategy "questionable." Such automaker loans are guaranteed by the U.S. Department of Energy.



Source: Autoblog Green

Average fuel economy of new vehicles in the US rose again in November; UMTRI Eco-Driving Index at 0.87, highest since April

Average fuel economy of all new vehicles sold in the United States is up for the second straight month, according to researchers at the University of Michigan Transportation Research Institute (UMTRI). In addition to average fuel economy, Sivak and UMTRI colleague Brandon Schoettle issued their monthly update of their new national Eco-Driving Index, which estimates the average monthly environmental impact of an individual US driver. The EDI takes into account both vehicle fuel economy and distance driven—the latter relying on data that are published with a two-month lag.

During September, the EDI stood at 0.87, the highest level since April. The index currently shows that emissions of greenhouse gases per driver of newly purchased vehicles are down 13% since late 2007.

The UMTRI Eco-Driving Index, updated November 2011. Click to enlarge.

Average fuel economy of cars, light trucks, minivans and SUVs purchased in November was 22.7 mpg, up from 22.6 mpg in October and up from 22.1 mpg in both August and September.

According to Michael Sivak, research professor and head of UMTRI’s Human Factors Group, average fuel economy of all new vehicles bought last month is at its highest level since May when it was also at 22.7 mpg.

The all-time high of 23 mpg occurred in March of this year. Average fuel economy for new vehicles sold is now 2.3 mpg better than four years ago.

Source: Green Car Congress

Auto industry survey finds need for materials innovation to meet 2025 CAFE; greatest change seen in powertrain systems

49% of respondents thought that powertrains would see the greatest percentage of material changes as a result of proposed 2025 CAFE standards. Click to enlarge.

The auto industry’s current materials portfolio will need to be augmented to meet new 2025 fuel economy standards, according to a WardsAuto and DuPont Automotive survey conducted in late July.

Only 5% of the vehicle design and engineers polled said they are “very confident” that currently available materials will help them meet proposed CAFE standards. Nearly half the respondents say the greatest change in materials will be in powertrain systems, noting that advanced propulsion systems—from downsized engines to hybrid and electric vehicle systems and batteries—will drive new material requirements.

Respondents identified the need for higher strength, lighter metals including aluminum, magnesium; more cost-effective advanced composites for structural components that can significantly reduce weight and high-heat resistant, lightweight materials to withstand higher combustion pressures and temperatures.

77% agreed that the proposed CAFE standard would “fundamentally change how vehicles are manufactured in the US”, with 52% agreeing that the proposed target would require most vehicles to use hybrid-electric or electric powertrains. Only 24% agreed that the 2025 CAFE target could be reached used currently available technologies, and only 25% agreed that the CAFE target would not jeopardize the safety of future vehicles.

Only 8% agreed that environmental groups fully understand the technologies and engineering tradeoffs required to meet CAFE targets of 50 mpg or higher, with the same percentage agreeing that environmental groups lobbying for higher CAFE consider current and future National Highway Traffic Safety Administration (NHTSA) safety rules when they evaluate the cost and achievability of future fuel economy targets.

Eight in ten respondents indicated that cost was one of their top two criteria when deciding whether to adopt a new technology that impacts production and manufacturing. The next highest response was 42% for consumer acceptance.

While 44% of the respondents indicated that the government has the greatest amount of influence on powertrain policy, the same percentage indicated that it should be consumers who have the greatest amount of influence.

More than 1,000 subscribers to WardsAuto responded to the survey designed to identify challenges and trade-offs associated with meeting 2025 CAFE (corporate average fuel economy) standards. Results of the survey, commissioned by DuPont and performed by Paramount Research, Coralville, Iowa, were released during the Center for Automotive Research’s Management Briefing Seminar this week in Traverse City, Michigan.

The WardsAuto, DuPont survey was conducted just before the Obama administration’s originally proposed 2025 fleet average of 56.2 mpg (4.1 L/100 km) was negotiated to 54.5 mpg (4.3 L/100 km).

Clearly CAFE regulations have confronted the industry, but they’ve also driven focus around technology needs, material demands and cost issues. While the CAFE standard is a little lower than proposed, it’s significantly higher than where we are today. Advanced materials, alternative propulsion systems and new technologies must be developed quickly and cost effectively.

This is a defining moment—not just for materials, but for the industry. And it’s one that breaks the silos of the value chain and is inclusive of the global marketplace.

—David Glasscock, DuPont global automotive technology director

In addition to materials challenges, the WardsAuto and DuPont survey explores how new CAFE standards will impact vehicle manufacturing and offers a ranking of the top challenges consuming industry resources.

Source: Green Car Congress

New CAFE rules for 2025: How 54.5 mpg generates a lot of numbers (and opposition from VW)

Following the big CAFE announcement this morning – which called for a 54.5 mpg fuel economy standard by model year 2025 – EPA administrator Lisa Jackson (pictured) gave a bit more information on how the proposal will affect the vehicle landscape in the U.S. She said that there is no expected percentage of what kinds of powertrains (diesel or plug-in or more efficient gasoline engines) will make up the fleet of vehicles sold in 2025, just that the rule requires those vehicles need to be cleaner than the ones produced today. Jackson told AutoblogGreen that gasoline and diesel vehicles "are treated the same" under the new proposal, something that Volkswagen is not too happy about since diesel doesn't get any of the miles per gallon equivalency incentives, the way that plug-in and fuel cell vehicles do. The EPA says that the proposal also gives, "Credits for technologies with potential to achieve real-world CO2 reductions and fuel economy improvements that are not captured by the standards test procedures," that's apparently not good enough for VW. The White House proposal also gives a lot of love to big trucks, and Jackson said that, "full-size pickups are where we decided to make some accommodations," since that segment is running a bit behind the rest of the industry in terms of getting better fuel economy.

We also gathered a few numbers from various press releases that were put out today. There have been a some negative comments issued (see VW and the American Road & Transportation Builders Association, below), but most are positive:

• Savings to the consumer of $1.7 trillion at the pump (Source: EPA)
• Alternate number: Savings of $107 billion at the pump (Ceres)
• Savings of $8,000 per vehicle by 2025 (EPA)
• A loss of $65 billion in federal funding for state and local highway, bridge and transit improvements (ARTBA)
• The entire program will save 12 billion barrels of oil (EPA)
• By 2025, oil consumption should be reduced by 2.2 million barrels a day (EPA)
• 54.5 mpg is the same as 163 grams per mile of CO2 emissions
• 54.5 mpg "would create roughly 484,00 jobs nationwide" (Ceres)

Source: Autoblog Green

Study: 62 mpg CAFE standard would cost consumers an arm and... $1,450

Bumping up federal fuel economy standards to 56 miles per gallon in the 2025 would yield fuel savings that offset increased vehicle prices, according to the Center for Automotive Research. However, CAR says, jumping to 62 mpg would increase vehicle prices to such a degree that additional cash needed to buy an auto would exceed the amount of money saved at the pump over a five-year period.

Center for Automotive Research president, Jay Baron, points out that although the research firm is partially financed by the automotive industry, this study was internally funded. With that disclosure out of the way, let's look at some of the numbers:

• Technological advancements will drive up the average cost of vehicles by $3,810 to $11,390 by 2025, depending on CAFE targets.
• Fuel savings would range between $5,917 and $8,339, depending on CAFE requirements, over the first five years of owning a 2025 vehicle.
• Under the 47-mpg, 51-mpg and 56-mpg targets, fuel savings would exceed the increased cost of a new vehicle.
• Under the 62-mpg standard, increased vehicle prices would top fuel savings by $1,450.

Here's the kicker: Center for Automotive Research chief economist Sean McAlinden says that raising the CAFE target to 62 mpg would force consumers to retain their aging autos, resulting in less fuel-efficient vehicles on U.S. roads, increased fuel consumption and more pollution. Looks like this could turn into a "less is more" scenario if things don't go right.



Source: Autoblog Green

MOST FUEL-EFFICIENT AUTOMAKER IN AMERICA, HYUNDAI, SAYS LINEUP TO AVERAGE MINIMUM 50 MPG BY 2025

Press Release:

MOST FUEL-EFFICIENT AUTOMAKER IN AMERICA, HYUNDAI, SAYS LINEUP TO AVERAGE MINIMUM 50 MPG BY 2025

• Since 2008 Hyundai has been the most fuel-efficient manufacturer in the U.S.
• Since becoming the leader in fuel economy, Hyundai market share is up 50 percent
• Hyundai’s next goal: Average at least 50 mpg by 2025 through innovative Blue Drive™ technologies

TRAVERSE CITY, Mich., 08/04/2010

Hyundai Motor America, the leading fuel economy auto manufacturer in the U.S., announced plans to maintain its leadership and achieve a corporate average fuel economy (CAFE) rating of at least 50 miles per gallon (mpg) by 2025 for its lineup of passenger cars and light duty trucks.

Current National Highway Traffic Safety Administration (NHTSA) regulations require automakers to achieve a CAFE rating of 35.5 mpg by 2016. Before those rules were enacted last year, Hyundai had already announced its own plan to reach 35 mpg by 2015. Hyundai’s announcement of this longer-term goal of delivering a minimum 50 mpg CAFE rating by 2025 is consistent with its philosophy of setting stretch objectives that align its resources, challenge its team members, and delight consumers and society.

“We’re committed to setting the pace in this industry on fuel economy, and we’re inspired by the possibilities that our advanced Blue Drive technologies afford,” said John Krafcik, Hyundai Motor America president and CEO. “Getting to 50 mpg and beyond seems like a huge leap, but by making this commitment and aligning our R&D initiatives now, we know we can get there.”

Hyundai has shown that customers will flock to high-quality, stylish products offering high fuel economy. The game-changing all-new 2011 Hyundai Sonata is the first mid-size family sedan to offer only 4-cylinder engines. Sonata achieves an EPA highway rating of 35 mpg, yet leads competitors in power output through the use of advanced gasoline direct injection (GDI). Sonata’s sales were up 48 percent in the first half of 2010, while its transaction prices and residual values now exceed those of most mid-size competitors. The Sonata and its 2.4-liter Theta II GDI engine are built at Hyundai Motor Manufacturing Alabama.

“This is our simple formula for success in the automobile industry,” said Krafcik. “Rather than fighting fuel economy regulation, we encourage our Hyundai engineers to deliver more fuel efficiency, faster, accelerating the benefits to our customers, society, and the planet.”

Since becoming the fuel economy leader in the 2008 model year, Hyundai Motor America market share is up more than 50 percent.

A Global Research and Development Effort

Hyundai’s plan to achieve an average of 50 mpg or better encompasses a full line of products, from small cars to larger family haulers. It leverages Hyundai’s global Blue Drive strategy, aligning R&D resources at its engineering centers in California, Michigan, Korea, India and Germany to develop more fuel-efficient vehicle technologies. Key enablers are improvements and innovation in powertrains including gasoline direct injection, turbocharging, electric hybrids, plug-in hybrids, light-weight materials and design, and more.

2011 Sonata Leads the Way

The 2011 Sonata, which went on sale earlier this year, features a 2.4-liter Theta II GDI 4-cylinder as its base engine, offering up to 200 horsepower and 35 miles per gallon on the highway. By offering only 4-cylinder engines and through other weight optimization efforts, Hyundai engineers were able to reduce the weight of the Sonata by 130 pounds.

This fall, Hyundai will launch the 2.0T 4-cylinder turbo option for the 2011 Sonata and the company’s first hybrid in the United States. The Sonata Hybrid features a 2.4-liter Theta II 4-cylinder gasoline engine mated to an electric motor-boosted 6-speed automatic transmission. The Sonata Hybrid incorporates an industry-first lithium polymer battery, which packs greater power density and stability into a smaller, more package-efficient space.

Sonata’s Hybrid Blue Drive system eschews the typical continuously variable transmission for a more consumer-friendly step-shift 6-speed transmission, which makes the system more cost-effective and more readily adaptable to other future applications. Sonata exemplifies Hyundai’s efforts to bring advanced power train technologies to the mainstream.

Fuel Economy Leadership Since 2008 Model Year

Hyundai achieved fuel economy leadership by topping the U.S. Environmental Protection Agency fuel economy report for the 2008 model year. The EPA 2009 Light-Duty Automotive Technology and Fuel Economy Trends Report indicates that Hyundai has the highest 2008 model year laboratory 55/45 fuel economy at 30.9 mpg. Hyundai passed all major manufacturers in combined passenger car and light duty truck fuel efficiency including traditional leaders like Honda and Toyota. The report demonstrates the effectiveness of Hyundai’s value-driven fuel-efficiency strategy, which focuses on the intelligent application of cost-effective technologies.

Hyundai is poised to maintain its fuel-economy leadership as projected data for the 2009 model year shows Hyundai retaining its edge over the industry. Forecasts show a 2009 model-year fuel economy rating of 30.1 mpg for passenger cars and light duty trucks. Hyundai is also the only automaker to top 30 mpg in the 2009 projections.^[1][1]

Environmental Protection Agency Fuel Economy Reports

Group	Fuel Economy (mpg)
	MY 2008 EPA Lab 55/45*
Manufacturer**	Overall (Cars/Trucks)
Hyundai	30.9
Honda	30.1
Volkswagen	27.9
Toyota	29
Kia	28.8
Nissan	27.6
BMW	26.3
Ford	24.5
General Motors	24.4
Chrysler	24.2

* From EPA Table A-7 2009 Trends Report (Appendix A) http://www.epa.gov/otaq/cert/mpg/fetrends/420r09014-appx-a.pdf

**Includes ten highest-volume manufacturers. Based on sales projections for the ten highest volume manufacturers. EPA Light-Duty Automotive Technology, Carbon Dioxide and Fuel Economy Trends: 1975-2009 Report. Honda includes combined Honda and Acura brands. Hyundai excludes Kia brand.

HYUNDAI MOTOR AMERICA

Hyundai Motor America, headquartered in Fountain Valley, Calif., is a subsidiary of Hyundai Motor Co. of Korea. Hyundai vehicles are distributed throughout the United States by Hyundai Motor America and are sold and serviced through about 800 dealerships nationwide. All Hyundai vehicles sold in the U.S. are covered by the Hyundai Assurance program, which includes the 5-year/60,000-mile fully transferable new vehicle warranty, Hyundai’s 10-year/100,000-mile powertrain warranty and 5-years of complimentary Roadside Assistance.