Tag: CAFE

By on September 10, 2019

Environmental Protection Agency Administrator Andrew Wheeler weighed in on the gas war this week, issuing some firm language on the matter during a visit to Chattanooga, Tennessee. His words were softer upon returning to Washington, where he reminded everyone that the EPA has made no formal decisions on the matter and suggested there could still be room for compromise.

Unfortunately, locating that happy middle ground has been a bit of a problem. Despite the fuel economy rollback’s status as a proposal, hard lines have been drawn in the sand between the Trump administration and California’s regulatory bodies. The Golden State’s compromise was to delay the Obama-era targets by one year. California also recruited municipalities, U.S. states, and automotive manufacturers to pledge their support of the plan, resulting in a handful of carmakers finding themselves on the business end of an antitrust probe.

Meanwhile, the Trump administration’s compromise has been nonexistent. Wheeler’s words suggest that might be because everyone is still making up their minds… but not before he gently razzed the West Coast for being shortsighted an singleminded.  (Read More…)

By on August 28, 2019

2020 Ram 1500 EcoDiesel

There’s a Consumer Reports study making the rounds that reveals owners of trucks and large SUVs wish for better performance at the pump. Please pick yourself up off the ground. In fact, 73 percent of surveyed drivers who own such a vehicle wish for more MPGs in their next vehicle, which is not surprising given that large vehicles return, on average, below-average fuel economy.

Interestingly, the Detroit Three find themselves in the midst of an MPG war with their full-size, light-duty diesels. Mild hybrid Ram 1500s are here, and Ford has a hybrid F-150 in the works. Both Ford and GM have fully electric full-sizers in development. The General just introduced a four-cylinder half-ton (with an admittedly lackluster EPA rating).

While it’s understandable that owners of large vehicles would wish for lower fuel costs, the study fails to ask why owners want an improvement in their gas bill.  (Read More…)

By on July 9, 2019

On Tuesday, 23 governors signed a joint statement urging the Trump administration to reconsider the proposed rollback of Obama-era fueling regulations. Led, unsurprisingly, by California Governor Gavin Newsom, the letter suggests a “common-sense approach” to national requirements with an emphasis on rising standards.

A minor update in the gas war to be certain — and yet annoyingly framed by a large portion of the media as a victory for California when the realities are far more complicated. To be frank, we’re getting pretty tired of these lopsided takes. This whole thing is a regulatory and political quagmire… on all sides.  (Read More…)

By on June 26, 2019

Canada’s federal government announced it has signed a memorandum of understanding with California to further reduce vehicle emissions. It would appear that the United States’ neighbor to the north has chosen a side in the gas war — at least spiritually.

Canadian Environment Minister Catherine McKenna, along with California Governor Gavin Newsom, announced the agreement’s signing on Wednesday.

“As the world’s fifth-largest economy and a global leader in clean transportation, California is a leading example of how climate action can be good for people, the environment and the economy,” McKenna said. “We look forward to working with California to fight climate change, keep the air clean and give drivers better options for cleaner, more affordable vehicles.” (Read More…)

By on June 21, 2019

us-capitol, public domain

Capitol Hill was the scene of some high-school drama this week after representatives from the Environmental Protection Agency (EPA) and the California Air Resources Board (CARB) reportedly refused to sit at the same table while discussing fueling regulations with the U.S. House Energy and Commerce Committee.

As petty as this seems, it illustrates the overall situation rather well. White House officials terminated talks with California in February, citing an inability to progress the debate. Meanwhile, CARB has been claiming the Trump administration doesn’t want to hear its case and has instead sought to strip the state of its ability to self regulate in order to pass reforms that would freeze national emissions standards at 2020 levels though 2026.

Thursday’s congressional bickering helped paint a clearer picture of what the communications breakdown looked like.  (Read More…)

By on June 20, 2019

The United Auto Workers is spending Thursday telling Congress that the union opposes the Trump administration’s proposal to freeze fuel efficiency requirements at 2020 levels through 2026… sort of. While the UAW expressed moderate environmental concerns in the past, most of its opposition to the rollback has revolved around corporate investments into the industry. In fact, the union’s research arm called fuel economy the auto industry’s “future” in 2018.

This time around, the UAW seems to be singularly focused on business aspects. According to a prewritten testimony, UAW Legislative Director Josh Nassar intends to tell two subcommittees of the U.S. House Energy and Commerce Committee that the union is in line with automakers’ concerns about the proposal leading to “protracted litigation and uncertainty in the industry that will limit growth.” (Read More…)

By on June 12, 2019

On Tuesday, the House of Representatives Energy and Commerce Committee said it will schedule a hearing on June 20th regarding the Trump administration’s proposal to roll back automotive efficiency standards. The decision comes from Committee Chairman Frank Pallone, Jr. (D-NJ), Consumer Protection and Commerce Subcommittee Chair Jan Schakowsky (D-IL) and Environment and Climate Change Chairman Paul Tonko (D-NY) — all of whom are in clear opposition to the suggested plan.

The groups will hold a joint hearing to discuss Corporate Average Fuel Economy (CAFE) standards and carbon pollution regulations affecting light duty vehicles as they relate to the current administration’s plan to effectively freeze efficiency targets between 2020 to 2026.  (Read More…)

By on June 7, 2019

The automotive industry is in turmoil. There’s an industrywide push toward electrification that has yet to prove itself as truly profitable, volume seems to be tapering off in the developed world, and emissions regulations aimed at improving air quality are operating counter to existing consumer tastes. As a result, automakers are scrambling to find the best path forward.

In 2017, that path involved encouraging the new U.S. president to roll back Obama-era fuel economy mandates, thus providing some breathing room and staving off fines as automakers began to realize they wouldn’t be able to meet tightening targets. The administration listened, leading to a proposal that would effectively freeze mileage standards at about 37 miles per gallon — rather than the previously decided 54.5 mpg — by 2025.

However, California and a coalition of supportive states claim they won’t be going along for the ride. This group says it will maintain the old standards, regardless of what the White House says. The staredown has automakers worried; they’ve now banded together to issue a letter asking both sides to calm down and keep talking.  (Read More…)

By on June 5, 2019

General Motors and Fiat Chrysler Automobiles have reportedly reached an agreement to purchase federal greenhouse gas credits from Tesla. While it’s common knowledge that the electric carmaker has raked in revenue by selling credits for years, disclosures with the State of Delaware help paint a clearer picture.

Apparently, GM filed to buy credits from Tesla earlier this year while FCA bought them on several occasions in 2016, 2018, and again earlier this year. Considering FCA’s American lineup, we’re not exactly quivering with disbelief. CEO Mike Manley could show up at a press conference, light a pool of gasoline on fire, and suggest it was Dodge’s new corporate model before we’d raise an eyebrow.

As unsurprising as FCA’s inability to adhere to present-day pollution mandates happens to be, there is a story here. The rising demand for greenhouse gas credits is changing the industry in some rather interesting ways.  (Read More…)

By on March 7, 2019

The Environmental Protection Agency released its annual assessment of new vehicles yesterday, and it was filled with good news. On average, fuel economy continues to improve. Cars are not getting heavier, horsepower keeps going up, and every major manufacturer managed was in compliance with greenhouse gas standards through the 2017 model year. However, the EPA also said it’s concerned that manufacturers frequently tap into stored-up regulatory credits to make this possible.

“Most large manufacturers used banked credits, along with technology improvements, to maintain compliance in model year 2017. Three large manufacturers achieved compliance based on the emission performance of their vehicles, without utilizing additional banked credits,” the agency explained.

The ability to bank credits by over-complying in a given year is seen by some environmental groups as a way for corporations to shirk their responsibility to the planet. But EPA Administrator Andrew Wheeler’s concerns regarding the system rest elsewhere.  (Read More…)

By on March 7, 2019

2018 Lincoln Navigator

Chances are, the vehicle you drove 10 or 20 years ago returned worse fuel economy than the one sitting in your driveway today. Significantly worse fuel economy.

While this may not be true if you went from strapped Corolla owner to affluent Navigator enthusiast over the past decade or so, it’s true for the average vehicle sold today. In a much-cited report on fleet fuel economy and emissions, the Environmental Protection Agency claims new vehicles hit a record in 2017, with a significant MPG bump looking likely for 2018. (Read More…)

By on March 6, 2019

The Trump administration has long been at odds with California and a coalition of supportive states that hope to block the rollback of Obama-era fueling regulations the current Environmental Protection Agency deems “unsustainable.” The EPA also says it’s inconsistent with consumer behavior. But automakers have behaved somewhat erratically on the matter, forcing the president to request (by proxy) that they make up their minds and pick a side before a final decision is made.

While industry leaders previously backed the more stringent regulatory framework set in place by the former president, they quickly converged on Washington after Trump assumed office in 2017, requesting a softening of Corporate Average Fuel Economy standards. After blowback from California and environmental activists, automakers took a more measured approach, publicly stating that they support green initiatives and reducing their own carbon footprint — and suggesting that a national deal be reached that pleases all parties.

Fence-sitting time might be over.
(Read More…)

By on February 11, 2019

Fiat Chrysler Automobiles paid $77 million in U.S. civil penalties late last year due to its failure to adhere to 2016 model year fuel economy requirements. In December, the National Highway Traffic Safety Administration (NHTSA) issued a report claiming the industry faced millions in fines from 2016 and that one manufacturer was expected to pay significant civil penalties.

You can probably guess which one. But FCA is by no means the only automaker affected by stringent fuel rulings. (Read More…)

By on January 10, 2019

President Donald Trump nominated Andrew Wheeler as administrator of the Environmental Protection Agency on Wednesday, setting him up to permanently fill a position he’s already occupied since July.

Trump praised Wheeler in November his “fantastic job” as acting administrator of the EPA following the July 2018 resignation of the agency’s former scandal-ridden head, Scott Pruitt. This month, the president submitted Wheeler’s formal nomination to the Senate. There’s still a ways to go before the ex-lobbyist’s confirmation, though, as the Senate will no doubt be critical of his relatively recent ties to the coal industry. (Read More…)

By on October 29, 2018

General Motors Renaissance Center

General Motors appeared to endorse the Trump administration’s fuel economy rollback, at least to some degree. In a federal filing made public on Monday, the largest U.S. automaker said Obama-era rules that targeted fleetwide fuel efficiency in excess of 50 miles per gallon by 2025 were “not technologically feasible or economically practicable.”

Interesting, considering GM CEO Mary Barra recently called for for the adoption of a national zero-emission vehicle strategy. However, the document also had GM saying it was “troubled” that the current administration appears so keen to abandon federal incentives on electric vehicles after the 2021 model year.  (Read More…)

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