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December 28, 2011  |  Comments
What does 54.5 mpg mean to you?

Photo By  Whitehouse.gov

The 54.5 mpg Corporate Average Fuel Economy (CAFE) standard for 2025

What does 54.5 mpg mean to you?

By 2025, every automotive manufacturer will have to abide by a 54.5 mpg Corporate Average Fuel Economy (CAFE) standard. The move has been heralded by environmentalists, but what effect will this have on you, the consumer, moving forward?

First things first, the new law doesn’t mean every new vehicle sold must get at least 54.5 mpg, it means the average fuel economy of every model from a manufacturer must be 54.5 mpg. Therefore, trucks and sport utilities will be balanced out by more electric and hybrid vehicles. The Wall Street Journal estimates that as much as 25 percent of a manufacturer’s fleet will need to be comprised of hybrid and electric vehicles.

Other cars will have to rely on more creative ideas to help reach the new CAFE standards. Already, vehicles are ditching the spare tire in favor of tire repair kits. Other changes include rounder corners, flatter underbody and grille covers. Plus manufacturers will continue to invest in engine enhancing technology, such as Ford’s EcoBoost engine.

As a result of more research and development, the government estimates that the price for the average car will rise by $2000 in 2025. However, the savings in fuel could be as high as $6600. Which means there would be a net savings of over $4000 for the consumer.

There is debate on whether the manufactures will even reach this goal, including from our own CEO Mike Jackson. The only sure answer is that this will impact all new cars moving forward. At this year’s L.A. Auto Show, an astounding 42 hybrid or electric vehicles were displayed. Like it or not, the car of the future is on its way.

 

About Adam Lopez

Adam Lopez is an advertising specialist at AutoNation's headquarters in Fort Lauderdale, Fla.
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