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Obama Announces 54.5 mpg Fuel Economy Guidelines for 2025

Big trucks, like the 2011 Ford F-150 King Ranch, will be balanced by small, fuel-efficient vehicles in automakers' fleets as part of the new 2025 regulations.

By model-year 2025, fuel economy across each automaker’s fleet of vehicles will need to average 54.5 miles per gallon for cars and light-duty trucks, The White House Office of the Press Secretary reports.

President Obama was joined by representatives from Ford, GM, Chrysler, BMW, Honda, Hyundai, Jaguar/Land Rover, Kia, Mazda, Mitsubishi, Nissan, Toyota, Volvo, the United Auto Workers (UAW) and the State of California, when making his announcement today.

“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.”

The White House says that by 2025, when the CAFE (Corporate Average Fuel Economy) rules go into effect, consumers will save more than $8,000 per vehicle in fuel costs from these increased fuel economy regulations.

“This is another important step toward saving money for drivers, breaking our dependence on imported oil and cleaning up the air we breathe,” said EPA Administrator Lisa P. Jackson.

These fuel economy regulations put a lot of pressure on automakers, but some vehicles, like trucks and SUVs, are exempt, although the most fuel-efficient models would compensate for their lower ratings, we reported Thursday.

The White House says in its statement that government agencies are considering incentive programs for electric, plug-in hybrid and fuel-cell vehicles, as well as “advanced technology packages for large pickups, such as hybridization and other performance-based strategies.”

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