As promised in our initial coverage of the story yesterday, this an update of the new CAFE regulations as set by the Obama Administration.
This morning, President Obama officially unveiled the new CAFE standards, set to take full effect by 2016. Although slightly less egregious than the 42.5 mpg speculated by the media yesterday, the official numbers aren’t any more performance (or wallet)-friendly. Outlined in a plan that is expected to cost roughly $1,300 per vehicle, the new emissions standards will require all passenger cars to average 39.5 mpg (light trucks, 30 mpg) by the year 2016. Effectively overriding Congress’ original plan which allowed until 2020 for the 35 mpg national average to be reached, the Obama Administration has cut the time frame while ballooning the budget, shaving 4 years off the initial deadline and hiking the overall price from $13 billion to $20 billion.
Using the bankrupt state of California as a rubric for the new policy, administration officials herald the bold new piece of legislation as a major victory for the environment. A slightly less obvious ally, the auto industry has also spoken out in staunch support of the new regulations, further strengthening our suspicion that something sinister is afoot. Said Ford CEO Alan Mulally, “We are pleased President Obama is taking decisive and positive action as we work together toward one national standard for vehicle fuel economy and greenhouse gas emissions that will benefit the environment and the economy. Today’s announcement signals the achievement of a crucial milestone – an agreement in principle on a national program for increased fuel economy and reduced greenhouse gases.”
Echoing Mulally’s sentiments, Friedrich Eichiner, Member of the Board of Management of BMW AG, said, “The announcement today by President Obama is a major step in the right direction for automotive manufacturers in the United States such as the BMW Group.”
Source: Detroit News, Ford, BMW
Image Cred: Getty Images