About one year ago, 13 major automakers and the United Auto Workers announced they would support efforts by the Obama administration to double fuel economy for cars and light-duty trucks by 2025. They did so for many reasons, not the least of which was to deflect demands from environmentalists for even more drastic increases in efficiency. We editorialized at the time that the compromise could mean considerable savings to motorists and enhance national security by reducing U.S. dependency on foreign oil.On Tuesday, the new efficiency standard was formally announced, and it’s good news for recession-ravaged motorists and recovery-aspiring automakers. An industrywide average of 54.5 miles per gallon will be required by 2025. That’s a long way to go, but we’ve got a long time to get there: 13 years. And assisting the effort is the existing plan to raise average fuel economy to 35.5 mpg by 2016. The current standard — accompanied by a formula so complex as to test the patience of the most advanced engineers — is about 36 mpg for cars on average, but varies widely according to vehicle types.
So this is not an abrupt or overly challenging shift to greater fuel efficiency. And it will be reviewed after five years to see if the new standards are practical and on track.
Critics of the plan complain that the change will dramatically increase the price of cars and light trucks, perhaps by as much as $3,000 each. Administration officials say that will be more than compensated for by fuel savings. White House officials on Tuesday said the change will be the equivalent of a $1-per-gallon cut in fuel prices.
It’s instructive to review how this issue stood more than three decades ago, and what happened as the years unfolded. In 1975, Corporate Average Fuel Efficiency standards were 27.5 mpg for cars, and domestic automakers weren’t much interested in using efficiency as part of the sales pitch to customers. Foreign companies filled that void with such success that U.S. automakers were left struggling to compete. Indeed, they still are.