The American government has decided on a new fuel consumption agreement with the largest car manufacturers in the country. The U.S. is set to considerably tighten its fuel consumption norms for vehicles.
The new treaty, however, won't be effective immediately. The parties agreed to gradually decrease the average fleet fuel consumption to 54.5 miles per gallon between 2017 and 2025. This would equate to 1/23 of the current amount.
A lot of people in the automotive industry are not particularly happy with the new fuel consumption norm. They are not at all happy, actually. The new norm has been received under strong criticism.
American consumers to profit from the new fuel consumption norms
If we take into account current prices, American fuel consumers should be able to save up to $ 8,200 per car on fuel through the U.S. government's plans. This would mean that oil consumption would eventually decrease with a good 2.2 million barrels every day.
However, the numerous critics claim that it will take at least 25 years before the positive effects of reducing fuel consumption of cars and vehicles in such a way will be visible. Why, you ask? Because the measures will only take effect in 2025 and because the effects are calculated on the entire life cycle of a car.
Consequences of the fuel-efficiency norm for car makers
A direct result of the agreement is that all vehicles would have to become more fuel-efficient. That way new and used cars on American roads will become more environmentally friendly.
The car makers will also be directly effected by the new fuel-efficiency norm. They will have to build cars that meet the new standards. Green regulations, however, are being set in other parts of the world too. So the car manufacturers would not have to make an exception for the U.S. market. Quite the contrary, European regulations, for example, are very strict.
Extensive criticism from car manufacturers and from congress
Criticism is most heard on the side of the car manufacturers. Car maker Volkswagen; in particular, was very vocal about its discontent. The manufacturer is firmly opposed to the new norm because it is disadvantageous towards regular passenger cars and vehicles.
The German car brand feels the agreement is far too easy on SUVs and pick-up trucks because these vehicles fall under the so-called 'trucks regime', which allows them to emit much higher quantities of CO2.
There have also been loud rumors that the new fuel consumption agreement was made in back rooms by members of the government and certain car manufacturers. The U.S. Congress took this rumor very seriously. Congress expressed its concerns on the subject because this would be in clear violation of U.S. law.
Therefore, a formal investigation was started. The House Oversight and Government Reform Committee, are looking into the realization of the agreement and continue to oversee the procedures.
We will have to wait for the result of the investigation to see whether or not the measure is going to be revoked or reworked.
By Katrien Tans
The new treaty, however, won't be effective immediately. The parties agreed to gradually decrease the average fleet fuel consumption to 54.5 miles per gallon between 2017 and 2025. This would equate to 1/23 of the current amount.
A lot of people in the automotive industry are not particularly happy with the new fuel consumption norm. They are not at all happy, actually. The new norm has been received under strong criticism.
American consumers to profit from the new fuel consumption norms
If we take into account current prices, American fuel consumers should be able to save up to $ 8,200 per car on fuel through the U.S. government's plans. This would mean that oil consumption would eventually decrease with a good 2.2 million barrels every day.
However, the numerous critics claim that it will take at least 25 years before the positive effects of reducing fuel consumption of cars and vehicles in such a way will be visible. Why, you ask? Because the measures will only take effect in 2025 and because the effects are calculated on the entire life cycle of a car.
Consequences of the fuel-efficiency norm for car makers
A direct result of the agreement is that all vehicles would have to become more fuel-efficient. That way new and used cars on American roads will become more environmentally friendly.
The car makers will also be directly effected by the new fuel-efficiency norm. They will have to build cars that meet the new standards. Green regulations, however, are being set in other parts of the world too. So the car manufacturers would not have to make an exception for the U.S. market. Quite the contrary, European regulations, for example, are very strict.
Extensive criticism from car manufacturers and from congress
Criticism is most heard on the side of the car manufacturers. Car maker Volkswagen; in particular, was very vocal about its discontent. The manufacturer is firmly opposed to the new norm because it is disadvantageous towards regular passenger cars and vehicles.
The German car brand feels the agreement is far too easy on SUVs and pick-up trucks because these vehicles fall under the so-called 'trucks regime', which allows them to emit much higher quantities of CO2.
There have also been loud rumors that the new fuel consumption agreement was made in back rooms by members of the government and certain car manufacturers. The U.S. Congress took this rumor very seriously. Congress expressed its concerns on the subject because this would be in clear violation of U.S. law.
Therefore, a formal investigation was started. The House Oversight and Government Reform Committee, are looking into the realization of the agreement and continue to oversee the procedures.
We will have to wait for the result of the investigation to see whether or not the measure is going to be revoked or reworked.
By Katrien Tans
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