President Barack Obama announced this morning that his administration and the thirteen major automakers have come to an agreement to pursue a 54.5 MPG average fleet goal by the vehicle model year 2025. The agreement marks a historic milestone in fuel efficiency standards as well as the inclination that the US government and automakers are on the same path to a greener transportation industry. In addition to curbing emissions from vehicles on the road, the initiative will save customers an incredible $8,000 per vehicle at the gas pump, which amounts to national savings of about $1.7 trillion.

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“This agreement on fuel standards represents the single most important step we’ve ever taken as a nation to reduce our dependence on foreign oil,” said President Obama. “Most of the companies here today were part of an agreement we reached two years ago to raise the fuel efficiency of their cars over the next five years. We’ve set an aggressive target and the companies are stepping up to the plate. By 2025, the average fuel economy of their vehicles will nearly double to almost 55 miles per gallon.”

This new agreement was built upon the shoulders of the Obama administration’s agreement with automakers to raise the fleet average to 35.5 mpg by the 2012-2016 model years.

The President’s announcement came to life after an agreement was made with Ford, GM, Chrysler, BMW, Honda, Hyundai, Jaguar/Land Rover, Kia, Mazda, Mitsubishi, Nissan, Toyota, Volvo and the United Autoworkers of California. Just last month the President was derided for his high hopes for new fuel efficiency standards as he announced he was aiming for a 56.2 mpg average fleet goal. We’ll say his success with a 54.5 mpg goal is quite the accomplishment. The new standards apply to cars and light-duty trucks. With electric and fuel efficient vehicles popping up in fleets across the country and government support for the sale of those cars still going strong, these new standards should be easily achieved.

+ The White House