The US market is a great fan of fuel efficient vehicles. According to the new records, the US automakers will be more profitable at a 42 mile per gallon (mpg) average in 2020. It is the strictest standard proposed currently, but it is also seen as achievable standard. The records also specify that, by 2015 more than one in 20 cars sold in the US will be hybrid, plug-in or full electric vehicles (EV).
The fuel economy analysis has evaluated the potential impact of the changes done for US Corporate Average Fuel Economy (CAFE) and greenhouse gas (GHG) emissions standards may have on the auto industry in 2020.
The city report is an overview of the current state of the dynamic electric vehicle industry. It focuses on individual company product plans, key technology issues, and the latest industry initiatives that will have impact on future improvement.
Very specific findings from few reports:
- Stronger mileage and GHG standards will encourage variable profits and sales in 2020 for the auto industry worldwide, with the Detroit 3 benefiting at large. The Detroit 3’s profit gains will be more than half of all increased profits.
- US-based suppliers of key fuel-saving technologies – from turbochargers to direct injection, dual-clutch transmissions and more – will benefit.
- The US electric vehicle industry is already showing positive trends and will grow further under strong standards and other government policies that will boost demand for electric and plug-in-electric cars.
- The 42 mpg standard by 2020 is consistent with a 6% annual mileage improvement, starting in 2017, that would boost fleet mileage to 62 mpg by 2025. In addition to increasing profits, these goals are eminently achievable technologically and in a cost-effective way.