America’s Auto Industry: What Improved Fuel Efficiency Means For Us

 Though government intervention is often scorned by the public, their controversial regulations for increased fuel efficiency and gas mileage has proven to be beneficial and lauded by (some) consumers and environmentalists alike. Back in 2007, the Bush administration set new, higher requirements that the automobile industry had to meet with the vehicles. And two years later in 2009, the Obama administration took the raised standards one step further: by 2025 American automakers must increase their gas mileage efficiency to 54.5 miles per gallon (mpg) for models sold from 2017-2025.

There are five main benefits that have come from the standard changes to gas mileage requirements:

• Fuel-economy and carbon-pollution standards for 2012 to 2016 model cars are creating jobs and improving car sales
• Fuel-economy and carbon-pollution standards for 2017 to 2025 model cars will multiple automobile fuel economy by 2 and decrease oil use by 2 million barrels per day.
• The Recovery Act invested $2.4 billion in 2009 in fuel-efficient vehicle research and development to foster job growth and increase international competitiveness.
• Government loans gave automakers the finances they needed to convert factories to the production of fuel-efficient vehicles.
• The “Cash for Clunkers” program increased vehicle efficiency and helped save the auto industry

Now a few more miles per gallon might not seem all that significant but it is. Just a five mile improvement saves a driver $525 per year (if said driver drives 15,000 miles per year) with gas at $3.50 a gallon. If that price were to go up to $4 a gallon, this driver would save $600 every year!

In terms of oil dependency and environmental health, the National Highway Transportation Safety Administration has estimated that over the lifetime of new vehicles sold between 2017 and 2025, the savings on oil to be approximately 4 billion barrels of oil and  in 2030 about 3.1 million barrels of oil per day and savings on pollution to be 2 billion metric tons of carbon pollution, a 10% reduction.

This is due to the many improvements to technology that automakers and researchers have been developing. This includes advanced powertrains and transmissions, lighter parts, and even fix-a-flat canisters instead of the old jack and spare which will also save weight.

Different companies have taken different measures of using these technologies to improve their vehicles’ fuel efficiency. Ford has the EcoBoost engine which is equipped with direct fuel-injection technology that provides up to 20 percent better fuel economy. The new Nissan Altima has a four-cylinder engine that generates 182 horsepower, compared to the 175 horsepower on the lower-mileage engine it’s replacing. Chrysler has added forward gears to its transmissions slowing the engines to consume less fuel. And Toyota continues to develop hybrid-model vehicles.

Many of the improvements are already apparent. In just the first three months of 2012, U.S. gasoline consumption reduced to 124,000 barrels of oil per day compared to a year ago. The credit for this goes to better gas mileage which went up by 1.1 per gallon over that year.

Besides the sky-high costs for the technology, there is one major drawback to gas mileage efficiency. The easiest and most cost-efficient way to improve fuel-economy is to decrease the weight of cars, a tactic that all of these automakers have utilized. This is done by replacing steel parts with plastic ones. And even though lighter cars get much better gas mileage than heavier cars do, it comes at the cost of vehicle safety. Plastic absorbs less impact on collision than does steel, leaving drivers and passengers at greater risk of serious injury or death during an accident. And because automakers have been mandated to make the switch, less steel-parted cars will be available to consumers.

With this in mind, fuel-efficiency may not be an even trade-off for the life of a loved one or yourself. But that is up to the law, automakers, and most importantly consumes to decide. the safety of the consumer must always remain at the forefront of debate on this issue. If there is a way to balance the two, it will be a win-win for everyone.

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References

Newman , Rick . “Tough Government Gas Mileage Rules Good for Drivers, Auto Industry.” U.S.News & World Report.

Weiss, Daniel, and Jackie Weidman. “5 Ways the Obama Administration Revived the Auto Industry by Reducing Oil Use.” Center for American Progress.

Heberling, Michael. “Government-Mandated Fuel-Efficiency Standards.” The Freeman Ideas on Liberty. 56. no. 7 (2006). http://www.thefreemanonline.org/features/government-mandated-fuel-efficiency-standards/ (accessed October 4, 2012).