According to the National Highway Traffic Safety Administration, the fleet of cars sold in the U.S. through the first half of the year averaged 26.8 mpg. That's a new record, and it is being pushed by the rapid move from larger cars, trucks and SUVs into smaller, more fuel efficient vehicles. For reference, last year's rating stood at 26.6 miles per gallon. While these numbers can be useful for tracking the overall average mileage of new cars in the States, these are actually the CAFE numbers that the government uses for keeping tabs on the automakers. As has been widely covered, these figures aren't really the most accurate numbers available as there are provisions for automakers to improve their scores through the use of alternative fuels. Some manufacturers also carry over credits from past years when they surpassed the CAFE requirements. Still, a fuel mileage improvement is a good thing, and it's likely to only get better as fuel prices remain high enough to impact purchasing decisions.

[Source: The Detroit News]

Click above for more high-res shots of the 2007 Toyota Prius Touring

The numbers for last year's combined fleet fuel efficiency for all automakers in the United States has been tallied. The winner? Um, Lotus. But, they don't really count. Too small. For manufacturers that actually offer a full line of automobiles, Toyota with 29.69 mpg just barely edged out the likes of Honda, which posted 29.49, and Hyundai with 29.37. All those Prius hybrid sales surely helped push Toyota to the top this year. Not surprisingly, the Detroit 3 didn't even come close with 25.16 from GM and 25.15 from Ford. DaimlerChrysler propped up the rear with a dismal 23.97 average figure.

Toyota has no plans to give up the mileage crown. In fact, the Japanese giant will increase capacity of its upcoming third-gen Prius sedan by an astonishing 70-percent at the Tsutsumi factory in Japan, allowing for the production of 480,000 hybrid sedans per year. For 2010, Toyota plans to bring its Mississippi plant online, which will further serve to increase capacity. We have a feeling that it'll have little trouble selling every one it manufacturers.


[Sources: NHTSA (.pdf link), Automotive News - sub. req'd]

When the National Highway Traffic Safety Administration published an initial draft of the new fuel economy rules this spring, they gave automakers and other interested parties until July 1 to comment before finalizing the rules. That comment period is now over and GM and others have responded. Under the energy bill that was passed in December 2007, NHTSA is supposed to factor in what is technically feasible as well as what kinds of vehicles are expected to be on the market in setting the standards. If large numbers of plug-in vehicles are available they can set the standards higher. In GM's comments, the automaker told NHTSA that plug-in hybrids and extended range electrics will be available by the middle of the next decade but the agency shouldn't expect enough of them to be available to make a major impact on fleet average mileage. GM is currently only forecasting production of 10,000 Volts in 2011, rising to 60,000 the following year. Similarly, the plug-in hybrid Saturn Vue will likely only have limited availability at first. Regardless of what automakers and NHTSA want, if gas prices don't subside, the standards may be a moot point as the market may supersede them.

[Source: Detroit Free Press]

Though BMW was the first automaker to contact the Bush Administration with concerns about the latest CAFE rules, it didn't take long for more to speak up. As represented by the Alliance of Automobile Manufacturers, the Detroit 3, Toyota, Volkswagen, Mercedes-Benz and others have banded together to proclaim the demands too harsh. Especially considering the current state of automotive affairs, the Alliance alleges that it will be too costly to either meet the goals set out in the latest CAFE standards or face the fines for not meeting them. It is certainly true that most automakers are finding it tough to sell vehicles in these days of turbulent fuel prices and a damaged economy in the U.S.

Eighty-percent of the auto market in the states is represented by the Auto Alliances members, so the issues presented by the groups are sure to be taken seriously. With other groups, including Transportation Secretary Mary Peters, wanting to actually increase the CAFE requirements even further, the auto manufacturers seem to have their work cut out for them.

[Source: Automotive News - sub. req'd]

The average cost for Detroit's Big Three automakers to meet the proposed fuel efficiency targets of 31.6 miles per gallon by 2015 has been pegged at $30.6 billion. In contrast, the average cost for the Japanese automakers sits at less than half that amount at "only" $14.85 billion. These numbers come courtesy of a recent study by Global Insight. In a real shocker, General Motors alone is expected to pay out $15 billion alone. Why the disparity? Simple: the Japanese brands already offer more fuel efficient models. With that reasoning, it seems unlikely that the U.S. companies will get much sympathy from the buying public.

Global Insight also predicts that many new technologies which are just beginning to make a dent in sales today will make up a huger percentage of sales by 2015. These new developments include direct injection, turbocharging and diesel engines. Hybrids, the current darling of the fuel efficient crowd, will continue to gain market share, especially as more new models are rolled out which feature the hybrid drivetrain as an option or as standard equipment.

There is a glimmer of hope out there for automakers which are finding it tough to move vehicles in today's troubled climate. Global Insight predicts that there will be a pent-up demand for the replacement of aging models which owners have clung to in the face of high gas prices and a poor U.S. economy sometime around the year 2015.

[Source: Automotive News - sub. req'd]

Bob Lutz's worst nightmare appears to be on the horizon. Transportation Secretary Mary Peters is expected to unveil proposed regulations for fuel economy today that go beyond what Congress mandated in last December's Energy Bill. NHTSA appears set to require cars to achieve a fleet average of 35.7mpg of 2015 while trucks will have to get to 26.7mpg. That amounts to an average annual increase of 4.6 percent which goes beyond the 4 percent bump required by congress. In order to meet these new requirements carmakers are going to have to dramatically increase the implementation of technologies, like hybrids, biofuels, electrification and most of all reduce power.

In the arcane workings of Washington, Congress defines the requirements for fuel economy in energy bills. Meanwhile the Department of Transportation, through the National Highway Traffic Safety Administration actually defines the specific regulations that automakers have to work to. Why a safety agency is responsible for fuel economy regs remains a mystery. Finally, the Environmental Protection Agency is responsible for enforcement. The proposals will still have to go through a public comment period before they are enacted and we're still waiting for comment from the automakers. Meanwhile it's not clear what if any impact this will have on the battle between the automakers and California over that state's proposals to regulate CO2 emissions which would effectively increase mileage standards. We live in very interesting times.

[Source: Detroit News]

When Nissan introduced the Titan pickup truck earlier this decade, they became the first Japanese Automaker to directly challenge the U.S. manufacturers in the full-size truck segment. Unfortunately for Nissan, the gamble didn't pay off, but the company knows when to stop throwing good money after bad. With sales of only 65,000 a year and no sales outside of North America, it didn't make sense for Nissan to spend money developing a new generation vehicle. The capper on the deal were new fuel economy regulations. Nissan has been trying unsuccessfully for months to line up a supplier of diesel engines for the Titan. The announcement yesterday of the deal between Nissan and Chrysler to swap cars and trucks means the next-generation Nissan pickup will be built off the Ram platform.

It's not known yet if the Nissans will get the hybrid or light duty diesel engines that will debut in the Ram in 2010. Chrysler spokesman Nick Cappa told ABG that GM, Daimler and BMW would have to agree before Nissan could be included in the hybrid program. Since Daimler and BMW don't compete in the segment, and GM and Chrysler could certainly use the extra volume to bring costs down, it seems likely that the Nissan truck will eventually be found with a hybrid system. For the new light duty Cummins diesel, Dodge will probably get a period of exclusivity, but it seems likely that Nissan wouldn't even bother with a truck if they couldn't get a diesel, since everyone else in the segment will have one by 2010.

[Source: Automotive News - Sub. req'd]

Yes, oil prices are near $90 a barrel, and price increases at the pump will come very soon. This is why the Alliance to Save Energy is calling the Congress to raise immediately Corporate Average Fuel Economy (CAFE) standards.

"Congress must adopt and send to the president the CAFE increases in the Senate energy bill," said Alliance President Kateri Callahan. "As consumers continue to be burdened by increasing gasoline prices, and with cost-effective technology currently available that can dramatically increase vehicle fuel economy, there simply is no excuse for Congress to postpone raising fuel economy standards". She also mentions that this is not just a matter of saving bucks from our budget but because "energy efficiency in the transportation sector is a key element in helping to curb the polluting emissions that contribute to climate change and in lowering U.S. dependence on imported oil."

Until the new CAFE standards arrive, the Alliance to Save Energy encourages customers to reduce fuel consumption with some advice.

• Keeping the car in good order with regular maintenance, keeping tires properly inflated and sticking to speed limits.
• Buying more efficient cars.
• Getting information about federal income tax credits for buying hybrid-electric or diesel vehicles
• Testing the "Energy IQ" to learn how your waste of energy affects your community (you can take it here).
• Learning how being more energy-efficient contributes to the US economic and energy security.

Related:

• Chrysler chimes in on CAFE proposals
• John McElroy: All CAFE does is kill us slower
• Savvy driving saves money

[Source: Alliance to Save Energy]

While the idea of eliminating CAFE standards may strike you as unusual, the idea that Libertarians are against regulation really shouldn't. This is what Libertarians are know for, no? So, let's just keep that in mind as we check out a new column published today by Jerry Taylor and Peter Van Doren (of the Cato Institute) in Automotive News (subs req'd). The title of the article: "Don't raise CAFE standards; ditch them."

Read the full thing if you have your AN subscription. If you don't, I'll offer up some highlights:

• "Congress has no business dictating automotive fuel efficiency. That's a job for consumers, not vote-hustling politicians. There are no problems for CAFE standards to solve. Hence, they shouldn't be tightened; they should be repealed."
• "Increasing CAFE standards will not reduce the amount of pollution coming from U.S. autos. That's because we regulate emissions per mile traveled, not per gallon of gasoline burned. Improvements in fuel efficiency may reduce the cost of driving and thus increase vehicle miles traveled. Moreover, automakers have an incentive to offset the costs associated with improving fuel efficiency by spending less to comply with federal pollution standards."

Taylor and Van Doren also pooh-pooh the supposed connection between fuel conservation and foreign terrorism and the idea that higher CAFE standards will help secure our energy independence.

I'll admit I'm mostly ignorant about Libertarian ideology. For some reason, I imagine their perfect world is a lawless one where everyone stays holed up in their own home, guarding their food piles from roving bands of marauders (I realize this might be slightly exaggerated). And, as much as I disagree with him on a lot of issues, I assume James Woolsey and his ilk are pretty well-informed about how terrorist groups get their funding. I also think the idea that there should be no regulation of tailpipe emissions or of how much fuel our cars drink is hogwash. But what's your response? With all the talk of increasing CAFE, are Taylor and Van Doren just trying to attract attention by being contrarian or are they right on the money? The floor is yours.

[Source: Automotive News]

The question of how higher fuel standards will affect domestic auto companies is being debated by governors and many others. While the govs see proposed increases in fuel mileage as kicking Detroit while it's down, a report by the University of Michigan's Transportation Research Institute (UMTRI) says hold that thought.

There were two headlines in the press release announcing UMTRI's study: "New Study Finds Higher Fuel Economy Standards Yield Larger Big Three Gains" and "New CAFE design increases Detroit market share and profits." That sure sounds unequivocal, and it gets better. UMTRI found that "under the highest proposed fuel economy standard of 35 miles per gallon, General Motors, Ford and Chrysler stand to make $14.4 billion by 2017 -- over $6 billion more than the competition."

The study is named "The Impact of Attribute-Based Corporate Average Fuel Economy (CAFE) Standards on the Automotive Industry" and was headed by UMTRI's director of Automotive Analysis Division, Walter McManus. The attribute-based CAFE standards under discussion in Congress, take "into account the differences between vehicles and light trucks, which will have lower targets than cars. The new system doesn't penalize the Big Three for making large cars and trucks, but it does require that they improve the fuel economy of those vehicles. In so doing, they will gain market share and boost profits," McManus said in a statement.

UMTRI released a similar study last fall that found with high gas prices, fuel-efficiency equals profits (there's a big no kidding). The new UMTRI study can be read here and I've included three main findings for you after the jump.

Related:

• Detroit job market versus fuel economy: does it have to be this way?
• University of Michigan study: fuel-efficiency equals profits

[Source: University of Michigan's Transportation Research Institute]

According to Sterling Burnett, a member of the National Center for Policy Analysis (NCPA), the new CAFE standards should not be approved because "they will reduce consumer choices and put drivers at greater risk for injury or death in the event of an accident".

Mr. Burnett affirms that the new CAFE standards aren't possible because what consumers find important (like air conditioning, extra safety features, comfort and engine power) is incompatible with these standards. This will imply that consumers will also have less "freedom of choice" among models and will "put their lives at risk" when driving.

But there's more: He also affirms that, because cars with higher mpg are cheaper to run, people will use them more and will end up using more gasoline - As proof of this argument, he states that despite the increase of vehicle efficiency, gasoline consumption has increased twofold since the '70s.

Finally: "Not one Senator has ever designed a car or sold it for profit in a competitive marketplace," said Burnett. "They seem to believe they can impose any standard they want and everything will be peachy. The reality is, not only are the 'improvements' pie-the-sky ideals, but higher CAFE standards will result in people's deaths."

Related:

• Not just an issue for the Big 3- Imports and CAFE
• House Democrats say they'll push for new CAFE laws "soon"
• Bush might bring out the veto pen to strike 35 mpg dead

[Source: NCPA]

Popular Mechanics has published four simple tips automakers could apply now to improve car mileage. After contentious debate on Capitol Hill and lobbying from the industry, new Corporate Average Fuel Economy (CAFE) standards will jump to 35 mpg for all cars and SUVs by 2020, up from the current 27.5 mpg for cars and 22.5 mpg for trucks.

The four tips given aren't rocket science and can be applied to current models - save for they would mean an increase in sales prices. Here they are:

• Reducing weight: Using more aluminium, carbon-fiber or plastic panels to reduce the dead mass that has to be propelled.
• Using better powerplants: The hydrogen-cell is not ready yet but hybrids and diesel are already available (and domestic automakers do have excellent diesel powertrains in Europe)
• Mounting low-resistance tires: It's a bit at the expense of handling, but it's available and it doesn't cost too much.
• More gears: CVT transmissions or 7 and 8-speed transmissions are ready. The lower the rpm are, the less gas the car burns.

Related:

• US Senate reaches compromise on energy bill including CAFE increase
• Kelley Blue Book studies gas-savings habits and announces top fuel-efficient picks
• Maine auto dealer has 11 dealerships, says customers want high-mpg vehicles. So where's Detroit?

[Source: Popular Mechanics, thanks to Matt S.]

The U.S. Senate is debating the CAFE rules this week, and videos related to the discussion are turning up online - some due to Hugg-meister Linton, who has been uploading clips from C-SPAN and PBS. Here's a little of what was said and heard this week in and around Washington, D.C.

In the video above, Sen. Dianne Feinstein (D-Calif.) discusses her longstanding idea of an MPG trading program. Automakers who make a lot of high-mileage cars can sell credits to companies who insist on making gas-guzzlers. She calls it a "practical, workable system."

There's more after the jump.

This is the week the U.S. Senate starts full debate on a bill that would force higher corporate average fuel economy (CAFE) ratings on automakers. Automotive News' Harry Stoffer has a good run-down (subs req'd) on where things stand with the bill, as does USA Today, but it's a few days old now.

(You're probably familiar with this case because of all our previous stories - see below - but just as a reminder, the bill would raise the average to 35 mpg by 2020; in general, automakers oppose the bill)

Anyway, what's the score? Stoffer says the auto industry has lost clout to those who push the environmental message on Capitol Hill on this issue. Still, with all the connections the automakers have on the Hill, all this means is that the bill's fate is "too close to call."

Sounds to me like a compromise is in the works, even though the automakers, through the Auto Alliance, have been running scare ads to turn public opinion against the higher standards. They killed a CAFE revamping bill five years ago, but it's a different ballgame now. If you've got an Automotive News subscription, you can listen to those ads here.

Oh, and ethanol is a small part of the debate, too.

Related stories from the last ten days of AutoblogGreen:

• Automakers: OK to gas savings but...
• Sen. Dorgan to Big Three: you lose on holding back CAFE increases
• Survey shows 3 out of 4 Americans favor 40 mpg by 2010
• Congressman Rick Boucher trying to block state CO2 regulations
• Automakers pushing for CAFE alternatives, might call for 36 mpg car standards

[Source: Harry Stoffer / Automotive News]

It's astounding how every day now seems to bring another report of gas prices on the rise. Today, the national average for regular fuel is $3.227, according to AAA. We can all predict this isn't the top of the charts for gas prices this year, so let's just file this under T for temporary. Also, if we adjust for inflation, gas prices are just a few cents shy of a truly historic "highest price ever," according to NPR.

To follow up with some related news, the Associated Press' H. Josef Hebert writes that the U.S. House of Representatives has taken the bold step of approving legislation yesterday to outlaw gasoline price gouging. The measure passed 284-141, even though there are a lot of problems with the bill. For one, the proposal only goes into effect if the president declares an energy emergency, and it's limited to 30 days. The Senate will look at energy legislation next month, which is also when they debate raising CAFE standards.

Like some of our readers who left comments on the original post, opponents of the gouging bill pointed out the vagueness of the language used to describe the gouging. Rep. Joe Barton, R-Texas, told the AP that, "I don't know what `unconscionably excessive' means."

It may be hard to prove gas companies are charging 'unconscionably excessive' prices for their wares, but $3.23 a gallon is getting to be pretty excessive for people standing at the pump, don't you think? Who wants to guess where we'll see the American national average peak this summer?

[Source: AAA, Associated Press / H. Josef Hebert]