A Primer to Fuel Economy and Emissions Standards

Full Description:

An important transition within the automotive industry is underway as fuel economy and carbon dioxide (CO2) emissions regulations quickly accelerate through the year 2025. The industry will be required by regulation to increase fuel efficiency of the U.S. fleet from 27.5 miles per gallon (MPG) for passenger cars and 23.4 MPG for light duty trucks in 2010 to an estimated 54.5 MPG for all vehicles in model year(MY) 2025. 54.5 MPG, a number used by the administration, regulators and frequently reported by media, is an estimate of what the industry must meet in 2025. In reality, it is a representation of a complex set of measurements. The actual fuel economy target required will depend on a variety of factors and will even differ from manufacturer to manufacturer.

Among the factors that determine the official standard for a vehicle manufacturer are: the footprint of a vehicle, the distribution of truck and passenger car sales, and the market share of credit or incentive enabling technology. The following document will describe some of these factors and identify implications as the industry moves forward.