President Obama Announces 54.5 MPG Average Fleet Goal for All US Automakers

by , 07/29/11

obama administration, average fleet goal, average fleet mpg, mpg standards, fuel efficiency standards, fuel efficiency program, fuel efficiency regulations, gas regulations, fuel regulations, fuel efficiency policy, green transportation, renewable energy

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.

obama administration, average fleet goal, average fleet mpg, mpg standards, fuel efficiency standards, fuel efficiency program, fuel efficiency regulations, gas regulations, fuel regulations, fuel efficiency policy, green transportation, renewable energy

“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

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  1. charles.brodhead3 August 14, 2011 at 9:06 am

    @caeman — I appreciate your efforts looking after the economically disadvantaged. One of the problems with a switch to diesel is that there is only so much available when refining a barrel (42 gallons) of oil.

    “The largest share of the 42 gallons of crude oil ends up as a finished motor gasoline. Motor gasoline accounts for 19.65 gallons (~ 47%) of the finished products produced from a barrel of crude oil. Next is distillate fuel or diesel at 10.03 gallons (~ 24%) . A distant third is jet fuel at only 4.07 gallons per barrel (~ 10%) of crude. Residual oil is typically around 1.72 gallons per barrel (~ 4%).

    Other petroleum products that are created from a barrel of oil during the refining process include: still gas, petroleum coke, liquified refinery gas, asphalt and various oils for lubricants, kerosene, waxes and other miscellaneous products. These “other” hydrocarbon products account for the final 15% of the barrel or around 6.53 gallons of the 42 gallon barrel.”

    If the US switches to diesel, its price would explode higher while gasoline prices would collapse due to simple supply and demand. Europe mainly consumes diesel thus balancing the US’s gasoline consumption.

    @Ben — It’s great to see The Rocky Mountain Institute participate in these forums. Your continued application of common sense (e.g. focusing on moving people/cargo and not heavy drivetrains or battery packs) is always welcome and much appreciated.

  2. caeman August 8, 2011 at 12:14 pm

    We could switch all American cars over to diesel. That would push the average fleet MPG over the new requirement. It is technology we already have and can implement. Advanced composites increase the cost of a vehicle too much, such that only the rich can afford the result, but even the low income can afford small diesel cars.

  3. Rocky Mountain Institute August 8, 2011 at 12:00 pm

    Integrative design, vehicle fitness and new manufacturing methods can save far more fuel at a similar sticker price by simplifying automaking and shrinking powertrains.

    Please see Rocky Mountain Institute’s recent blog post on this topic.



  4. poland.jr July 30, 2011 at 7:40 am

    This seems to be a tempest in a teacup. Why should it take until 2025 to achieve 54.5 mpg when many vehicles are almost there already? Why is the bar set so low? With the upcoming improvements in battery and engine technology we should set the goal at 100 mpg and if we fall a little short we still win!

  5. somendra mohan July 30, 2011 at 3:22 am

    to get better mileage with almost zero pollution on petrol/gas
    and diesel vehicles, please log on

  6. smghosh July 30, 2011 at 3:15 am

    A foot note from :-
    Environmentalist & Green technologist

  7. msyin July 29, 2011 at 5:28 pm

    While it sounds great that car manufactures have finally agreed that the MPG should be 54.5 but I don’t think they need as much time as they are given to get those results since hybrids today ( when driven properly) gets that and better. I have a Prius and with the AC on each time I use it am averaging 54.9 mpg now. Considering how much tax payers support the industry, is this really good news today with gas hovering near $4 a gallon?

  8. caeman July 29, 2011 at 12:12 pm

    Will this new legislation price new cars out of reach of the lower and poor class that would benefit from the higher MPG the most? These are the folks working in factories and usually have to drive long distances to their jobs. They need the MPG.

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