Washington, D.C. – U.S. fuel efficiency will rise to 54.5 mpg (4.3 L/100 km) under a historic agreement announced by President Obama and 13 major automakers.
The new fuel efficiency will come into effect for cars and light-duty trucks by model-year 2025 and will save consumers US$8,000 per car, the government said.
The automakers – Ford, GM, Chrysler, BMW, Honda, Hyundai, Jaguar/Land Rover, Kia, Mazda, Mitsubishi, Nissan, Toyota and Volvo – together account for over 90 per cent of all vehicles sold in the United States. Also integral in developing the agreement were the United Auto Workers Union (UAW) and the State of California.
“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,” Obama said. “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. We’ve set an aggressive target and the companies are stepping up to the plate. By 2025, the average fuel economy of their vehicles will nearly double to almost 55 miles per gallon.”
The plan is expected to save a total of 12 billion barrels of oil, and by 2025 reduce oil consumption by 2.2 million barrels per day, as much as half of the oil imported daily from OPEC. The standards will also curb carbon pollution.