Government now a days is putting pressure on Automobile Industry by increasing the gas mileage. “In August 2012, the Obama administration issued new rules that require auto manufacturers to increase the average efficiency of new cars and trucks to 54.5 miles per gallon by 2025”, reported by New York Times. In other words, United States is now giving pressure for the automobile industry in United States to produce more less super cars, and start developing more electric and plug-in hybrid cars. The purpose of doing it is all because the United States wants to control the carbon-dioxide emission that the car produces. However, this new rule is estimated that the oil consumption will be reduced by 12 billion barrels of oil, and saving an average of $8000 on fuel cost per vehicle by 2025.
Unsatisfied, automobile industry is trying to lower the gas mileage of what the government is expecting from 54.5 to 35.5. Not just President Obama has increased the gas mileage, even former United States president, President Bush, has increased the gas milage in previous years. To meet the expectations, automobile industries have been rolling out new technologies and other innovations to boost the mileage, including advanced powertrain, advanced transmission, and lighter components etc. This has made the gas mileage from previous 20.1 miles per gallon to 23.6 miles per gallon, said by the University of Michigan’s Transportation Research Institute. However, this might not be a bad news for some automobile industry because they’ve figure out that with smaller cars, they can make a better profit, since smaller cars have a “razor-thin” margin.
References:
http://www.usnews.com/news/blogs/rick-newman/2012/08/27/tough-government-gas-mileage-rules-good-for-drivers-auto-industry
http://topics.nytimes.com/top/reference/timestopics/subjects/f/fuel_efficiency/index.html