The Obama administration is widely expected to announce new federal regulations requiring cars to be more fuel efficient, and meet stricter emissions standards, at a press conference today. What do the new rules mean for car shoppers?
First, it doesn't mean anything about your current car. The Los Angeles Times reports, "The regulations would apply only to new cars. You don't have to scrap your gas guzzler and you won't need to retrofit it." The regulations don't affect used cars for sale, either.
It might, however, impact the price of the next car you buy. Politico reports that a "senior administration official said the new standards will add an expected $600 to the cost of an average car."
Other media sources have quoted a figure as high as $1,300, however, the Detroit News explains, "the program will cost automakers $1,300 per vehicle," but previously-planned CAFE regulations would already have added some of that cost, meaning the new regulations add "$600 ahead of the prior planned fuel efficiency increases."
The administration argues that the investment will quickly be recouped in savings at the pump. Politico notes, "The economic models used by the administration required a guess of the price of gas in the year 2016. The figure they used was $3.50 a gallon."
The rule could also impact the design of your next car. The New York Times reports, "To meet the new federal standards, auto companies will have to drastically change their product lineups in a relatively short time." The companies "will probably have to sharply reduce the number of low-mileage models, like pickup trucks and large sedans."
The impact of the new rules on car design, however, might be overstated. The process of moving toward more fuel-efficient cars was already underway before the Obama administration announced its new proposal.
General Motors, for instance, has invested heavily in the development of the Chevy Volt, a plug-in "extended-range electric car" car reportedly capable of travelling 40 miles under electric power alone before igniting a gasoline engine to recharge its batteries - meaning that many Volt owners would use no gasoline in their cars in an average day. The Chevy Cruze, a new small car due to arrive in time for the 2011 model year, reportedly approaches 40 mpg in highway mileage.
Ford, meanwhile, already sells the Fusion Hybrid, which the company claims achieves 41mpg in combined driving. The upcoming Ford Fiesta may also approach 40 mpg. Even in large trucks and SUVs, the company has begun replacing large V8 engines with a new, more efficient twin-turbo V6 it calls the EcoBoost engine, designed to give heavier vehicles fuel economy ratings around 30 mpg.
GM, meanwhile, has recently begun offering its Equinox midsize SUV with a new, direct-injection four-cylinder engine that gives it a 32 mpg highway rating and performance most drivers would be happy with.
The new regulations, then, may simply accelerate a process already underway.
One issue, however, remains unclear. Many automakers are currently developing electric vehicles that don't use gasoline at all. It isn't yet clear how the new regulations will affect those vehicles, or the companies that built them. EcoGeek says if "the government creates huge loopholes for companies that create a few hundred EVs, it could significantly weaken the legislation."
If you're in the market for a new car, check out the U.S. News rankings of this year's best cars as well as this month's best car deals.
