In July 2011, President Obama issued new fuel standards with a deadline of 2025 for completion. His goal was to reduce the American dependence on oil, but the new rigid standards were welcomed by the automobile industry. In fact, the President signed the law with the head executives of the major American and Japanese automakers at his side. Surprisingly, the new standards did not seem like a death knell for the auto industry. It also didn’t necessarily put the fear new type of engine in the company designers either. There are a few reasons for this.
The Right Cars Are Already on the Road
The cars necessary to meet the reduced greenhouse gas portion of the new standards is already
in effect with the electric and natural gas cars that the companies are developing. In fact, a few
companies have already released the first round of such cars. Nissan released the Leaf in July
2011 and the Chevy Volt are electric cars that are already available. According to Detroit News,
Honda natural gas powered Civic hits the market in 2012. Even diesel cars are in the works to hit
the gas mileage requirements well before the 2025 deadline.
New Technology in R&D Already
While some of the technology has already rolled off the assembly line, other new gas saving and
environmentally friendly creations were being created by research and development departments
before the law was even announced. Automakers are experimenting with battery power to create
an electric care that can go 200 miles without a charge. Turning more models into hybrids in also
in the works. This will bring many car models much closer to the gas mileage standard.
It’s What the Public Wants
A car that gets better gas mileage and is better on the environment is what car buyers want. No
one wants to pay $100 to fill the tank every week. To appease the consumer, the automakers
must comply. In their efforts to compete with one another for the consumer, the companies
will move toward a car that can meet the gas standards handed down by the President, possibly
before the 2025 deadline.
In years past, new fuel standards meant that the automakers had to stop the presses, retool and
remake the cars to meet the basic standards. The 2011 standards, however, came after the near
collapse of the American car industry in 2008 and a time of high gas prices. As a result, it seems
that the automakers are already doing what the governing body is trying to mandate.
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