US issues final auto fuel efficiency standards for 2025

28 August 2012 22:18  [Source: ICIS news]

WASHINGTON (ICIS)--The Environmental Protection Agency (EPA) on Tuesday issued final fuel economy standards for US automobile engines that will require an average of nearly 55 miles per gallon (mpg) fuel efficiency by 2025.

The new fuel economy standards will govern US automobile fuel efficiencies beyond the existing requirements that set a minimum average of 35.5mpg to be met by auto manufacturers in 2016.

In cooperation with the Department of Transportation (DOT), the EPA standards require a corporate average fuel economy (CAFE) for passenger vehicles and light trucks.

The CAFE standards mean that one or more vehicles produced by a given auto maker may fall below the 2016 and later 2025 mpg consumption mandates as long as other cars or trucks produced by the same manufacturer achieve greater fuel efficiencies resulting in a “fleet average” of 35.5mpg for 2016 and then 54.5mpg for 2025.

Analysts say that because automotive engine fuel efficiencies have already reached advanced stages, much of the improvement in automobile and light truck energy use will have to be achieved by further light-weighting of vehicles.

That trend in turn is expected to generate greater demand for low-weight vehicle parts and components made from plastic resins.

Paul Hodges studies key influences shaping the chemical industry in Chemicals and the Economy

By: Joe Kamalick
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