Automakers will need to reach 54.5 mpg by 2025

Automakers will need to reach 54.5 mpg by 2025


Friday morning, President Obama came together with automakers and industry representatives to announce the Corporate Average Fuel Economy (CAFE) standards for model years 2017 through 2025. In a private ceremony, the President delivered his remarks on the move that will require 20 miles per gallon more than the current vehicle requirements. While there, Obama and Congressional Democrats hailed the final number of 54.5 miles per gallon, which is just a few miles per gallon shy of the originally proposed number of 56.2 mpg.

There is no quick fix to the problem – there’s no silver bullet here. But there are steps we can take now that will help us become more energy independent. There are steps we can take that will save families money at the pump, that will make our economy more secure, and will help innovative companies all across America generate new products, new technologies, and new jobs.
-President Barack Obama

After weeks of meetings, car makers and the federal government finally reached an agreement. An industry representative for automakers of various brands told Be Car Chic that the real clincher was the opportunity for a mid-term review, which will allow the group to re-evaluate the CAFE requirements. With a date so far into the future, no one can predict the market conditions or how the sales of electric vehicles and plug-in hybrids will change between now and then. The interim review will give both groups an opportunity to re-evaluate the market at that time.

Most of the auto manufacturers that had a stake in the conversation also had an executive present. In fact, the President shared the stage with all of them. In speaking with representatives from the various OEMs, most were happy with the end result – an achievable goal with the opportunity for a reality check somewhere down the line if need be.Only time will tell whether or not automakers, their dealers, and consumers will make this Administration’s fuel-efficient dream a reality.

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Melanie Batenchuk founded Be Car Chic in 2009 as a way to help consumers make smart decisions when buying and selling their cars. Her prior work at the dealership, trade association and manufacturer levels has provided her a deep understanding of the complex facets within the auto industry, making her a leading woman in her field.