In 2012, the Obama Administration greatly increased the amount of pressure on the automobile industry into making a severe raise in the average miles-per-gallon of every single company’s fleet. The government increased the bar to an average 54. 5 mpg (miles per hour) by 2025 up from an average 28.6 mpg. These standards are fundamental for decreasing oil utilization and lowering the costs of supplying it. Many auto companies have considerably improved in building well-used fuel-efficient small cars. A majority of consumers are buying gas-electric hybrids because of the advances in battery technology. Over 50% of the top-selling cars in America are small or midsize vehicles, and one of the most favorite pickup models on the market is a Ford F-Series with a high-mileage, six-cylinder engine. Automakers and suppliers realize that an improved fuel economy means more sales, more earnings and more jobs. Many of their recent hires and investments prove this such as Ford stepping up its development of hybrid and electric cars by bringing the layout and manufacture of key elements in-house, a $135 million investment and doubling the size of its team working on leading energy technologies. This involves over 1,000 engineers and technicians which again plans to double in size by 2015. Another crucial point is Honda’s plan to hire 300 more workers next year at its Greensburg, Ind. plant, which is scheduled to also start bringing forward the Civic Hybrid. Two more examples are Volkswagen in adding a third shift at its Chattanooga, Tenn., plant, to lift production of its fuel-efficient Passat and Continental being a provider of fuel-efficient turbo chargers to Ford’s 2014 Focus. These examples present an image of a shift toward efficiency and advanced technology in driving job creation, expenditure and innovation across the country.

The presidents proposition brought in a 5% annual increase in fuel economy for cars from 2017 to 2025. The advances are more prudent for the light-truck classification, which contains sport utility vehicles, 3.5% a year through 2021, and then 5% annually in the next couple years. The guidelines declared six years ago run through 2016, demanding a collective average of 36 miles per gallon by then. As a whole, the contemporary principles will need a 54.5 miles per gallon corporate average for 2025. This is a standard that will be created more conveniently attainable by credits that automakers can acquire by producing battery-powered vehicles, hybrids and alternative-fuel models. The objective of the credits is to stimulate the development of cars with much lower emissions.

Fuel economy standards were first appointed on U.S. automakers in the 1970s. The goal was to make cars more efficient and lessen America’s reliance on foreign oil at the time when the Arab oil prohibition was contributing to gasoline shortages. The administration claimed that this had been the first update in decades. According to the research firm J.D. Power and Associates, the fuel economy is the main component people consider when buying a car in the U.S. The National Highway Traffic Safety Administration will implement the principles, calculating the average mileage of cars sold by each automaker and they can be punished if they don’t comply. The conditions, which can be appointed without congressional approval, will be inspected in 2018 and could be decreased if the technology isn’t available to meet the requirements. In conclusion, the Obama Administration says families will save up to $7,400 on fuel over the life of a vehicle because of these most recent changes. Lisa Jackson, the Administrator for the Environmental Protection Agency (EPA), said the standards are also the biggest step the U.S. government has ever taken toward cutting greenhouse gas emissions.

Sources
http://www.nytimes.com/2011/07/29/business/carmakers-back-strict-new-rules-for-gas-mileage.html?pagewanted=all&_r=1&
http://www.forbes.com/sites/joannmuller/2012/08/30/10-ways-automakers-are-helping-you-spend-less-on-gasoline/
http://thinkprogress.org/climate/2012/08/27/738621/why-fuel-mileage-standards-will-benefit-the-auto-industry-and-create-nearly-700000-new-jobs/#
http://www.huffingtonpost.com/2012/08/28/new-mileage-standards-obama_n_1836546.html