Friday, July 1, 2011

What Would a 56.2 MPG CAFE Standard Mean for Plug-ins?

What Would a 56.2 MPG CAFE Standard Mean for Plug-ins?: "
Obama Fuel Economy Standards

When the 2025 CAFE standards finally become law, will it be a boon to the plug-in electric

On Monday the Obama administration announced its intent to set 56.2 mpg as the starting point for a final decision on Corporate Average Fuel Economy standards leading into the 2025 model year. The number is slightly lower than the 62 mpg that advocates like the Natural Resources Defense Council had been calling for, but still mandates an ambitious 5 percent per year increase in average fuel economy from carmakers wishing to do business in the United States.

For perspective, the most fuel efficient vehicle currently available in the U.S. without a plug is the Toyota Prius, at 50 mpg combined. By 2025, every carmaker will have to average about 10 percent better than that. So does that necessarily mean that more plug-ins will be produced and bought? Yes and no.

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