Tougher fuel economy rules announced

National fuel economy target increased by 2 mpg overall for the 2011 model year.

EMAIL  |   PRINT  |   SHARE  |   RSS
 
google my aol my msn my yahoo! netvibes
Paste this link into your favorite RSS desktop reader
See all CNNMoney.com RSS FEEDS (close)
By Peter Valdes-Dapena, CNNMoney.com senior writer

Find Your Next Car


Photos
American cars: Red, white and cheap
A bad economy and crumbling auto sales have created absurdly low prices for some truly great American cars.

Find your next Car


NEW YORK (CNNMoney.com) -- The Department of Transportation announced the first increase in 25 years of the nation's fuel economy standards Friday.

Under the new rules, 2011 model year, cars will be required to get, on average, 30.2 miles per gallon and light trucks, such as pick-ups, SUVs and vans, will have to average 24.1 mpg.

The combined fleetwide goal for cars and trucks will be 27.3 mpg, a 2 mpg increase over the current standard of 25.3 mpg.

This represents the first step, under new fuel economy laws passed by Congress in late 2007, toward a 35 mpg average - including cars and trucks - by 2020.

The Department of Transportation estimates that the 2011 model fuel economy year requirements will save about 887 million gallons of fuel and reduce carbon dioxide emissions by 8.3 million metric tons.

"These standards are important steps in the nation's quest to achieve energy independence and bring more fuel efficient vehicles to American families," said transportation secretary Ray LaHood said in a prepared announcement.

Under the rules, carmakers will be given individual fuel economy requirements based on their particular mix of models and vehicle sizes. Manufacturers that exceed the requirements will earn credits that would allow them to fall short of requirements in future years.

Since the requirements are based on averages, manufactures that sell more hybrid or electric vehicles could use those to offset sales of less-efficient vehicles.

"The finalization of the federal Corporate Average Fuel Economy standards for model year 2011 is an important first step," Dave McCurdy, president the Alliance of Automobile Manufacturers, a trade group representing major carmakers, said in a statement. "It is now important that the Department of Transportation provide automakers with the certainty and consistency needed by setting standards for model year 2012 and beyond." To top of page

Features
They're hiring!These Fortune 100 employers have at least 350 openings each. What are they looking for in a new hire? More
If the Fortune 500 were a country...It would be the world's second-biggest economy. See how big companies' sales stack up against GDP over the past decade. More
Sponsored By:
More Galleries
'My biggest retirement mistake' Five CNNMoney readers share stories about saving that you can learn from. What they would do differently if they had another chance. More
Inside a $60,000 vacation of a lifetime Private jet tours around the world are growing in popularity, with a number of companies cropping up to take travelers on luxe, bucket-list trips. Here's a look at one 17-day journey, run by TCS Expeditions, that will take 78 people to some of the most lusted-over destinations. The price: $60,000 per couple. More
Don't want a bigger iPhone? Here are 6 alternatives Apple's next-generation iPhones are set to be the largest ever. But for those of us who don't want to give up any more space in our pockets, here are a few smaller options. More
Worry about the hackers you don't know 
Crime syndicates and government organizations pose a much greater cyber threat than renegade hacker groups like Anonymous. Play
GE CEO: Bringing jobs back to the U.S. 
Jeff Immelt says the U.S. is a cost competitive market for advanced manufacturing and that GE is bringing jobs back from Mexico. Play
Hamster wheel and wedgie-powered transit 
Red Bull Creation challenges hackers and engineers to invent new modes of transportation. Play

Market indexes are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer Morningstar: © 2014 Morningstar, Inc. All Rights Reserved. Disclaimer The Dow Jones IndexesSM are proprietary to and distributed by Dow Jones & Company, Inc. and have been licensed for use. All content of the Dow Jones IndexesSM © 2014 is proprietary to Dow Jones & Company, Inc. Chicago Mercantile Association. The market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. FactSet Research Systems Inc. 2014. All rights reserved. Most stock quote data provided by BATS.