As the US considers introducing new, much stricter fuel economy standard for new cars, one federation reckons a new 56.2 mpg standard by 2025 is just what consumers want and will help consumers save $6,00 per vehicle compared to the current 2016 standard.
New research from the Consumer Federation of America (CFA), an independent, non-profit group representing 300 consumer groups finds that the new 56.2mpg standard would also help cut gasoline consumption by one-third, insure US car companies remain competitive across the globe and substantially reduce dependence on foreign oil.
Moreover, the Federation says that consumers want fuel efficient cars to make running them more affordable.
“56 mpg by 2025 provides the President with a road map to help consumers cope with volatile gas prices and responds to American’s deep concern over our dependence on foreign oil,” said Mark Cooper, CFA’s Director of Research. “Setting a requirement of 56 mpg by 2025, enables car companies to gradually reach the standard that consumers want. In addition, any increase in the cost of the vehicle will be immediately offset by savings at the pump,” said Cooper.
The new fuel economy proposal is under consideration by the Obama administration and would represent a 5 per cent increase in fuel economy annually up to 2025, compared with the 35.5mpg standard in place for 2016.
However the Center for Automotive Research (CAR) has expressed a different opinion, a recent report from the center suggesting that new higher Corporate Average Fuel Economy (CAFE) standards could boost the price of a typical car sold in the US by as much as $9,790 while reducing new car sales by up to 5.4 million units a year, potentially eliminating as many as 265,000 American jobs.
Representatives of the White House are believed to be in discussion with the auto industry, with a decision on the revised fuel economy standards expected by September.
What do you think. Will the fuel economy standards help or hinder the US? Leave a comment below.
