July 29th, 2011 - White House Statement regarding fuel economy

President Obama Announces Historic 54.5 mpg Fuel Efficiency Standard

Consumers will save $1.7 trillion at the pump, $8K per vehicle by 2025

WASHINGTON, DC – President Obama today announced a historic agreement with thirteen major automakers to pursue the next phase in the Administration’s national vehicle program, increasing fuel economy to 54.5 miles per gallon for cars and light-duty trucks by Model Year 2025. The President was joined by Ford, GM, Chrysler, BMW, Honda, Hyundai, Jaguar/Land Rover, Kia, Mazda, Mitsubishi, Nissan, Toyota and Volvo – which together account for over 90% of all vehicles sold in the United States – as well as the United Auto Workers (UAW), and the State of California, who were integral to developing this agreement. “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,” said President Obama.
In achieving the level of standards described above for the 2017-2025 program, the agencies expect automakers’ use of advanced technologies to be an important element of transforming the vehicle fleet.  The agencies are considering a number of incentive programs to encourage early adoption and introduction into the marketplace of advanced technologies that represent “game changing” performance improvements, including:
  • Incentives for electric vehicles, plug-in hybrid electric vehicles, and fuel cells vehicles;
  • Incentives for advanced technology packages for large pickups, such as hybridization and other performance-based strategies;
  • Credits for technologies with potential to achieve real-world CO2 reductions and fuel economy improvements that are not captured by the standards test procedures. 

Also read: http://se-vehicle2.blogspot.com/p/is-america-trying-hard-enough.html

PS: CNN mentioned that according to the former president of Shell Oil, John Hofmeister, Americans could be paying $5 for a gallon of gasoline by 2012.