Automaker Impacted Differently by U.S. CAFE Rules

Washington DC April 28, 2008; The AIADA newsletter reported that Mercedes' cars would have to achieve better average fuel economy than Toyota's and BMW's light trucks would have to get 4 mpg more than those built by General Motors.

These are among the startling outcomes projected for the 2015 model year under new federal fuel economy regulations. The law mandates a 40 percent increase in car and truck fuel economy by 2020, to an industry average of 35 mpg.

The effects of the rules would vary dramatically among automakers. Automotive News reported that the winners are companies such as General Motors, Toyota, and Chrysler — mass-market manufacturers with broad product portfolios.

The losers are independent luxury brands such as Porsche, BMW, and Mercedes.

For cars, Chrysler's 2015 fuel economy standard would be the lowest, at 33.6 mpg. American Honda's would be highest, at 36.4 mpg. Automakers generally support the new fuel standards, despite the anomalies. They say a tough national standard is preferable to state-by-state greenhouse gas regulations, which would create market chaos.