The Auto Industry and Its Case for Fuel Efficiency

Of the past two decades alone, a significant cultural shift has taken place in the automobile marketplace as the government has increased its role as mediator between economic and environmental protection. This generational shift will be a key determinant in appraising the sustainability of our future. Merely the fact that the government has been willing to step in so forcefully is significant in itself because it has not been able to mediate as effectively as possible with the rise of powerful lobbyist firms and policy institutes. Even Mitt Romney had said that he would attempt to repeal legislation on this matter if elected president, claiming that its a government overreach. Of course, this is counterintuitive due to the benefits it has had for all parties and externalities, as Rick Newman of usnews.com has pointed out that “so far, the new mileage rules have generated tangible benefits for consumers, with few of the downsides opponents have predicted.” Improving efficiency standards has proved to generate long term savings for buyers and sellers alike, going to show that making “greener” business decisions can be reasonable both economically and socially.

The biggest nationwide shift occurred in 2011, when the federal government raised its Corporate Average Fuel Economy (CAFE) by its largest margin for the first time since 1975, per Csaba Csere at caranddriver.com. Carmakers now have to hit a universal minimum of 37.8 mpg by 2016, thereby ensuring these companies invest more into finding ways to increase gas mileage in the long run. The graph below displays the long-term financial benefits of these innovations.

The key technical specifications of gas mileage improvements are explained here by researchers at Aberdeen Group. The most efficient, immediate technologies include improved drivetrain efficiency, lighter weight vehicles, smarter software, hybrid technology, electric drive technologies, battery performance, and investing in newer technology. This last aspect holds perhaps the most potential, as in it lies the possibility for sustainability that has yet to be even formulated in theory. Today, there is already great headway occurring throughout the auto industry improving gas mileage in numerous different ways- 88% of automotive companies already have plans to develop even newer strategies for utilizing materials for total efficiency, per Aberdeen Group. “Composite materials have been very good in terms of rigidity, corrosion resistance, and strength. I would definitely recommend using them, especially when you consider how fuel-efficiency standards are on the rise,” says a product engineer at Automotive OEM. This engineer has certainly proved to be in the right by the rest of the auto industry as each and every company continues to develop new, sustainable mechanisms of gas mileage.

 

http://www.usnews.com/news/blogs/rick-newman/2012/08/27/tough-government-gas-mileage-rules-good-for-drivers-auto-industry

http://www.caranddriver.com/features/how-automakers-will-meet-2016-cafe-standards

http://m.plm.automation.siemens.com/en_us/Images/Solutions-for-Meeting-Fuel-Efficiency-and-Emissions-Standards_tcm1224-219133.pdf

One thought on “The Auto Industry and Its Case for Fuel Efficiency

  1. I agree with your point about how despite the fact that the government has stepped in, the big lobbyist groups still have a greater impact and say on the matter. However, I do think that thus far the new regulations imposed by the government have helped in the improvement of gas mileage.

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