Automakers say feds seem open to changes
Automakers say the Obama administration appears not to be wedded to the 56.2-mpg target for 2025 it floated last week and may be open to other refinements.
The manufacturers are pushing for a single national program while expressing concern in private talks with the White House that the standard may be too tough.
They are arguing that no decisions should be made until new forecasts of manufacturers' technology, costs and sales become available.
Environmental advocates who had been calling for a 62-mpg standard expressed support last week for a target of 56.2 mpg, or annual increases of 5 percent after the 2016 model year.
An administration study last fall found that the technology required to meet 5 percent yearly mpg increases would increase the cost of the average 2025-model vehicle by up to $2,600 and produce fuel savings of up to $7,000 over the life of the vehicle.
The Detroit 3 also are proposing that annual mpg increases be low in the early part of the nine-year period until advanced technology can be developed, and that periodic reviews be held.
This snapshot of the ongoing multiparty negotiations comes from industry officials who asked not to be identified. A rule for the 2017-25 model years is scheduled to be proposed in September and made final next July.
Automakers that met with California Gov. Jerry Brown said they got the impression that the state -- which has been an adversary in the past -- would not pose major obstacles to an agreement.
Some manufacturers' public comments also convey cautious optimism that their goal of a single nationwide program can be met.
"Ford believes that the meetings have been productive," a spokeswoman said. "We support increasing fuel economy requirements with one national program that is data-driven."
Automakers have been meeting with the administration and California regulators to build on the 2016-model standard of 35.5 mpg. They have considered 2025 standards of 47 to 62 mpg.
Showing posts with label Fuel Prices. Show all posts
Showing posts with label Fuel Prices. Show all posts
Tuesday, July 05, 2011
Monday, May 16, 2011
Dealers fear used-car bubble
Auction prices soar, but some say retail demand isn't on same pace
Already high used-vehicle prices are surging at auctions as dealers anticipate gaps in new-car inventories and snatch up used vehicles to fill their lots.
Fears of impending new-vehicle shortages as a result of the March 11 earthquake have pushed up used-vehicle prices. In recent weeks those fears have created a buying frenzy, especially for late-model, fuel-efficient vehicles.
But Damon Schoen, wholesale director at Hamilton Nissan in Hagerstown, Md., and others say retail demand for those vehicles has yet to catch up with the wholesale demand. They warn that used-vehicle auction prices could drop sharply.
Last week Schoen saw 2010 Hyundai Accents with 30,000 miles selling at auction for around $10,500 -- about $2,000 more than he would have paid at the end of February, he says.
His customers aren't clamoring for small used cars, he says, because they would pay almost as much for a used one as a new one. And he acknowledges that he might have to rejoin the bidding if he runs low.
"I participated in the bubble process," he says. "I have enough of these little things gathered up. When we start selling a couple, I'll be forced to go back to the well to replace them."
Michelle Primm, managing partner at Cascade Auto Group, which sells Audi, Mazda, Porsche and Subaru vehicles in Cuyahoga Falls, Ohio, typically buys the used vehicles she needs through auctions run by the manufacturers of her brands. But even those prices have "overheated," she says.
In an effort to find used vehicles with lower prices she has expanded her search to include local classified ads for private sellers and vehicles that have been repossessed.
Primm says consumer demand doesn't line up with the auction bidding because the general population does not understand the inventory problem facing the industry over the next few months. Dealers must plan ahead so they are ready, she says. "Dealers plan 60, 90 or 100 days out. It's what we're good at."
Even so, some dealers and analysts warn that auction buyers could get stuck with vehicles for which they overpaid. Falling new-car prices or lower gasoline prices could prompt a drop in used-vehicle prices, they say.
Since the Japan quake, rising new-vehicle transaction prices have, in turn, lifted used-vehicle prices. But that could change.
Last week, after announcing that its North American factories would be cranking up production sooner than expected, Toyota Motor Sales U.S.A. announced regional cash, interest-rate and lease incentives on most vehicles. Nissan Motor Co. followed suit.
Up 10% in one month
But for now, wholesale used-vehicle prices continue to surge. In its June 1 edition, NADA Used Car Guide raises its suggested prices of used small vehicles by about 10 percent from May levels. And some nameplates will jump even more.
For June, the NADA Guide raises the price of a 2007 Toyota Prius by $1,950, or 15 percent from May, to $15,350 and a 2010 Honda Civic LX sedan by $1,675, or almost 12 percent, to $15,950.
The increases are not limited to Japanese-brand vehicles. The NADA Guide raises the average price of the 2007 Chevrolet Aveo LS sedan by $750, or 14 percent, to $6,125, and that of the 2010 Hyundai Accent GLS by $1,175, or 11 percent, to $11,900.
Typically, used-vehicle prices peak in March and decline from April through June, says Jonathan Banks, NADA Used Car Guide senior director of editorial and data services.
This year, he predicts, used-vehicle prices will peak in June and flatten on the high side in July as new-vehicle prices gradually rise because of lower incentives and higher sticker prices. "We saw new-car incentives on small cars go down by about $400 from March to April. And we expect a similar move from April to May, which means used-car prices can go up," Banks says.
Pump price impact
Alec Gutierrez, manager of vehicle valuation at Kelley Blue Book, cautioned dealers to resist the temptation to load up on fuel-efficient vehicles. He says gasoline prices are predicted to fall in mid to late summer. When that happens, prices of fuel-efficient vehicles will drop significantly.
The price of the benchmark West Texas Intermediate crude oil hovered around $99 a barrel late last week, after flirting with $115 a barrel early this month.
"As we saw in 2008, when gas prices peaked at $4.10 per gallon, by year end we were back down to $1.60," Gutierrez says. "We're not saying we think prices are going to drop that much, but $3 or $3.50 a gallon is a possibility."
Already high used-vehicle prices are surging at auctions as dealers anticipate gaps in new-car inventories and snatch up used vehicles to fill their lots.
Fears of impending new-vehicle shortages as a result of the March 11 earthquake have pushed up used-vehicle prices. In recent weeks those fears have created a buying frenzy, especially for late-model, fuel-efficient vehicles.
But Damon Schoen, wholesale director at Hamilton Nissan in Hagerstown, Md., and others say retail demand for those vehicles has yet to catch up with the wholesale demand. They warn that used-vehicle auction prices could drop sharply.
Last week Schoen saw 2010 Hyundai Accents with 30,000 miles selling at auction for around $10,500 -- about $2,000 more than he would have paid at the end of February, he says.
His customers aren't clamoring for small used cars, he says, because they would pay almost as much for a used one as a new one. And he acknowledges that he might have to rejoin the bidding if he runs low.
"I participated in the bubble process," he says. "I have enough of these little things gathered up. When we start selling a couple, I'll be forced to go back to the well to replace them."
Michelle Primm, managing partner at Cascade Auto Group, which sells Audi, Mazda, Porsche and Subaru vehicles in Cuyahoga Falls, Ohio, typically buys the used vehicles she needs through auctions run by the manufacturers of her brands. But even those prices have "overheated," she says.
In an effort to find used vehicles with lower prices she has expanded her search to include local classified ads for private sellers and vehicles that have been repossessed.
Primm says consumer demand doesn't line up with the auction bidding because the general population does not understand the inventory problem facing the industry over the next few months. Dealers must plan ahead so they are ready, she says. "Dealers plan 60, 90 or 100 days out. It's what we're good at."
Even so, some dealers and analysts warn that auction buyers could get stuck with vehicles for which they overpaid. Falling new-car prices or lower gasoline prices could prompt a drop in used-vehicle prices, they say.
Since the Japan quake, rising new-vehicle transaction prices have, in turn, lifted used-vehicle prices. But that could change.
Last week, after announcing that its North American factories would be cranking up production sooner than expected, Toyota Motor Sales U.S.A. announced regional cash, interest-rate and lease incentives on most vehicles. Nissan Motor Co. followed suit.
Up 10% in one month
But for now, wholesale used-vehicle prices continue to surge. In its June 1 edition, NADA Used Car Guide raises its suggested prices of used small vehicles by about 10 percent from May levels. And some nameplates will jump even more.
For June, the NADA Guide raises the price of a 2007 Toyota Prius by $1,950, or 15 percent from May, to $15,350 and a 2010 Honda Civic LX sedan by $1,675, or almost 12 percent, to $15,950.
The increases are not limited to Japanese-brand vehicles. The NADA Guide raises the average price of the 2007 Chevrolet Aveo LS sedan by $750, or 14 percent, to $6,125, and that of the 2010 Hyundai Accent GLS by $1,175, or 11 percent, to $11,900.
Typically, used-vehicle prices peak in March and decline from April through June, says Jonathan Banks, NADA Used Car Guide senior director of editorial and data services.
This year, he predicts, used-vehicle prices will peak in June and flatten on the high side in July as new-vehicle prices gradually rise because of lower incentives and higher sticker prices. "We saw new-car incentives on small cars go down by about $400 from March to April. And we expect a similar move from April to May, which means used-car prices can go up," Banks says.
Pump price impact
Alec Gutierrez, manager of vehicle valuation at Kelley Blue Book, cautioned dealers to resist the temptation to load up on fuel-efficient vehicles. He says gasoline prices are predicted to fall in mid to late summer. When that happens, prices of fuel-efficient vehicles will drop significantly.
The price of the benchmark West Texas Intermediate crude oil hovered around $99 a barrel late last week, after flirting with $115 a barrel early this month.
"As we saw in 2008, when gas prices peaked at $4.10 per gallon, by year end we were back down to $1.60," Gutierrez says. "We're not saying we think prices are going to drop that much, but $3 or $3.50 a gallon is a possibility."
Thursday, February 24, 2011
Dealers brace for rising gasoline prices
Many U.S. auto dealers expect gasoline prices to keep rising in the wake of political turmoil in the Mideast. They say they will adjust their product mix accordingly -- aiming to stock more small cars and fuel-efficient crossovers.
The average national gasoline price is about $3.19 per gallon, according to the U.S. Department of Energy. That's about 54 cents higher than a year ago. With political unrest spreading in the Middle East from Egypt to oil-rich Libya, some pundits expect gasoline prices to soar.
In commodities trading today, the price of West Texas Intermediate crude oil rose 13 percent to $97.97 a barrel.
Many auto dealers are planning for gasoline prices to keep rising.
"We'll change the mix of products that we offer," John Pitre, general manager of Motor City Auto Center in Bakersfield, Calif., said today. He sells GMC, Buick and Lexus vehicles. "Hybrid demand has been pretty weak the last couple of years, so you can count on that coming back to life."
Pitre's inventory lacks GMC's more fuel-efficient products such as the Terrain and Acadia crossovers and diesel pickups. He plans to order more.
Small car segment ascendant
The U.S. small car segment comprised about 14 percent of U.S. auto sales in 2004, said George Pipas, Ford Motor Co.'s chief sales analyst. By 2009, it had risen to 21 percent. It slipped to 19 percent last year. But since late fall and into January, the small car segment has regained two points to 21 percent of industry sales. That's due mostly to gasoline prices creeping up, Pipas said.
"So far in February [the segment] is up again," he said. "Suffice it to say that it was up more than a point over February of last year really early in the month."
Slowly rising gasoline prices have affected used-vehicle prices, said Jonathan Banks, senior director of editorial and data services at NADA Used Car Guide.
He said changes in consumer behavior typically show up in the used-car market before the new-car market because used-car buyers are more sensitive to changes in gasoline prices.
Used trucks' prices down
Banks' data indicate that used-truck prices generally are falling while used-car prices inch higher.
"Trucks have not been in a free fall, like we saw in 2008, and we don't expect them to because supply is so tight. But you can see that the trend between cars and trucks is significantly different," he said.
Dealer Pete Adcock, president of FSK Lincoln-Mercury Inc. in Frederick, Md., said he can't find a 1- to 2-year-old Lincoln Navigator and Cadillac Escalade for a reasonable price because automakers reeled in production in 2008 when gasoline prices spiked then. He worries they'll have a knee-jerk reaction this time and he'll struggle to get newer used pickups and SUVs to sell.
Bring on the sales
David Brady, an owner of two Hyundai dealerships and one Kia store in suburban Huntsville, Ala., started paying attention to rising gasoline prices in November. He said gasoline in his area is now about $3.09 a gallon, up from roughly $2.25 a gallon about a year ago.
In January, Brady ran 60-second radio spots urging customers to come in and trade their large SUVs for smaller, more fuel-efficient vehicles.
On Tuesday, he sold two new Kia Souls and a new Rio to customers who traded in 2004 and 2006 Chevrolet Tahoe SUVs and a 2001 F-150 pickup.
He said 90 percent of the vehicles he is selling are fuel-efficient nameplates such as Kia Rios, Fortes and Souls.
He said February has been a great sales month and he attributes it to the price of gasoline. "The biggest problem I'm going to have is keeping the right inventory mix," he said.
No panic yet
Mitchell Dale, owner of McRee Ford in Dickinson, Texas, said prices for large SUVs and pickups have softened in the past two weeks.
In general, he said, there is increased discussion about gasoline prices, but customers still have a wait-and-see attitude.
"We've seen some people do trade-ins, but not the panic sell of 2008," Dale said.
Mike Sullivan, who owns eight dealerships in the Los Angeles area, said he hasn't seen a mass exodus from SUVs and pickups yet.
"There's no question in my mind that we are going to see it," he said.
Sullivan owns Toyota, Lexus, Scion, Audi, Volkswagen and Porsche dealerships and is opening a Fisker store. He said elevated gasoline prices will exacerbate the trend of moving to smaller, more fuel-efficient cars.
'Threshold has moved'
"The threshold has moved. Four dollars used to be the panic mode and that's not going to motivate people in and of itself," Sullivan said. "I don't think $3.90 or $4.05 is going to make people panic."
Mike Connolly, sales manager at Planet Chrysler Jeep Dodge in suburban Boston, said customers want to keep their bigger vehicles, but shop newer versions of those models that often earn higher fuel economy.
Connolly said dramatic consumer behavior will begin when it starts to cost more than $100 to fill the tank.
"What happened back in the summer of 2008 when prices were through the roof, it's nothing like that now," he said. "People want to get better gas mileage, but it's not a panic."
The average national gasoline price is about $3.19 per gallon, according to the U.S. Department of Energy. That's about 54 cents higher than a year ago. With political unrest spreading in the Middle East from Egypt to oil-rich Libya, some pundits expect gasoline prices to soar.
In commodities trading today, the price of West Texas Intermediate crude oil rose 13 percent to $97.97 a barrel.
Many auto dealers are planning for gasoline prices to keep rising.
"We'll change the mix of products that we offer," John Pitre, general manager of Motor City Auto Center in Bakersfield, Calif., said today. He sells GMC, Buick and Lexus vehicles. "Hybrid demand has been pretty weak the last couple of years, so you can count on that coming back to life."
Pitre's inventory lacks GMC's more fuel-efficient products such as the Terrain and Acadia crossovers and diesel pickups. He plans to order more.
Small car segment ascendant
The U.S. small car segment comprised about 14 percent of U.S. auto sales in 2004, said George Pipas, Ford Motor Co.'s chief sales analyst. By 2009, it had risen to 21 percent. It slipped to 19 percent last year. But since late fall and into January, the small car segment has regained two points to 21 percent of industry sales. That's due mostly to gasoline prices creeping up, Pipas said.
"So far in February [the segment] is up again," he said. "Suffice it to say that it was up more than a point over February of last year really early in the month."
Slowly rising gasoline prices have affected used-vehicle prices, said Jonathan Banks, senior director of editorial and data services at NADA Used Car Guide.
He said changes in consumer behavior typically show up in the used-car market before the new-car market because used-car buyers are more sensitive to changes in gasoline prices.
Used trucks' prices down
Banks' data indicate that used-truck prices generally are falling while used-car prices inch higher.
"Trucks have not been in a free fall, like we saw in 2008, and we don't expect them to because supply is so tight. But you can see that the trend between cars and trucks is significantly different," he said.
Dealer Pete Adcock, president of FSK Lincoln-Mercury Inc. in Frederick, Md., said he can't find a 1- to 2-year-old Lincoln Navigator and Cadillac Escalade for a reasonable price because automakers reeled in production in 2008 when gasoline prices spiked then. He worries they'll have a knee-jerk reaction this time and he'll struggle to get newer used pickups and SUVs to sell.
Bring on the sales
David Brady, an owner of two Hyundai dealerships and one Kia store in suburban Huntsville, Ala., started paying attention to rising gasoline prices in November. He said gasoline in his area is now about $3.09 a gallon, up from roughly $2.25 a gallon about a year ago.
In January, Brady ran 60-second radio spots urging customers to come in and trade their large SUVs for smaller, more fuel-efficient vehicles.
On Tuesday, he sold two new Kia Souls and a new Rio to customers who traded in 2004 and 2006 Chevrolet Tahoe SUVs and a 2001 F-150 pickup.
He said 90 percent of the vehicles he is selling are fuel-efficient nameplates such as Kia Rios, Fortes and Souls.
He said February has been a great sales month and he attributes it to the price of gasoline. "The biggest problem I'm going to have is keeping the right inventory mix," he said.
No panic yet
Mitchell Dale, owner of McRee Ford in Dickinson, Texas, said prices for large SUVs and pickups have softened in the past two weeks.
In general, he said, there is increased discussion about gasoline prices, but customers still have a wait-and-see attitude.
"We've seen some people do trade-ins, but not the panic sell of 2008," Dale said.
Mike Sullivan, who owns eight dealerships in the Los Angeles area, said he hasn't seen a mass exodus from SUVs and pickups yet.
"There's no question in my mind that we are going to see it," he said.
Sullivan owns Toyota, Lexus, Scion, Audi, Volkswagen and Porsche dealerships and is opening a Fisker store. He said elevated gasoline prices will exacerbate the trend of moving to smaller, more fuel-efficient cars.
'Threshold has moved'
"The threshold has moved. Four dollars used to be the panic mode and that's not going to motivate people in and of itself," Sullivan said. "I don't think $3.90 or $4.05 is going to make people panic."
Mike Connolly, sales manager at Planet Chrysler Jeep Dodge in suburban Boston, said customers want to keep their bigger vehicles, but shop newer versions of those models that often earn higher fuel economy.
Connolly said dramatic consumer behavior will begin when it starts to cost more than $100 to fill the tank.
"What happened back in the summer of 2008 when prices were through the roof, it's nothing like that now," he said. "People want to get better gas mileage, but it's not a panic."
Sunday, January 23, 2011
EPA approves E15 fuel for use in 2001-2006 cars
Automakers to ask courts to overturn rule
WASHINGTON – Gasoline can be sold with as much as 15 percent ethanol – up from the current 10 percent limit - in vehicles made between 2001 and 2006, the U.S. Environmental Protection Agency said today.
The Obama administration's announcement dealt another defeat on ethanol concentration to automakers, who said they would probably contest the decision in court.
Last October, the EPA approved use of so-called E-15 gasoline for cars, SUVs and light pickup trucks made during the 2007 model year and later.
EPA Administrator Lisa Jackson said today that use of E-15 gasoline would “allow more home-grown fuels in America's vehicles” without harm to emissions control equipment in cars and light trucks made since 2001.
Jackson said there had been “thorough testing” of the fuel by the U.S. Department of Energy.
EPA also said it will ensure that E-15 gasoline is properly labeled at the gas pump to prevent it from being pumped into vehicles that might be harmed.
An international automaker group said the government hasn't done enough testing to ensure that vehicles fueled with E-15 gasoline would be safe.
“All the data is not in to prove that E-15 won't have a negative effect on any vehicles,” said Mike Stanton, president of the Association of International Automobile Manufacturers.
Automakers seek court relief
He also expressed concern that, even with labels at the gas pump, consumers might accidentally fuel cars that haven't been approved for E-15 fuel.
Last month, U.S. carmakers and engine manufacturers asked a federal appeals court to require the EPA to reconsider its earlier ethanol decision on cars made since 2007.
Stanton said the lawsuit would probably be expanded to include vehicles covered by today's EPA decision.
There are more than 150 million vehicles made since 2001 on U.S. roads, and they account for 74 percent of vehicle gasoline consumption, EPA spokesman Cathy Milbourn said in an interview.
By 2014, there will likely be 187 million cars and light trucks made since 2001, and they will account for 85 percent of gasoline consumption, she said.
The decision today was hailed by a group of ethanol makers called Growth Energy.
“Increased use of ethanol will strengthen our energy security, create U.S. jobs and improve the environment,” said Tom Buis, CEO of Growth Energy.
The EPA did not grant approval today for E-15 gasoline use in motorcycles, heavy-duty vehicles or non-road engines because testing has not yet determined it is safe, the agency said in a statement.
WASHINGTON – Gasoline can be sold with as much as 15 percent ethanol – up from the current 10 percent limit - in vehicles made between 2001 and 2006, the U.S. Environmental Protection Agency said today.
The Obama administration's announcement dealt another defeat on ethanol concentration to automakers, who said they would probably contest the decision in court.
Last October, the EPA approved use of so-called E-15 gasoline for cars, SUVs and light pickup trucks made during the 2007 model year and later.
EPA Administrator Lisa Jackson said today that use of E-15 gasoline would “allow more home-grown fuels in America's vehicles” without harm to emissions control equipment in cars and light trucks made since 2001.
Jackson said there had been “thorough testing” of the fuel by the U.S. Department of Energy.
EPA also said it will ensure that E-15 gasoline is properly labeled at the gas pump to prevent it from being pumped into vehicles that might be harmed.
An international automaker group said the government hasn't done enough testing to ensure that vehicles fueled with E-15 gasoline would be safe.
“All the data is not in to prove that E-15 won't have a negative effect on any vehicles,” said Mike Stanton, president of the Association of International Automobile Manufacturers.
Automakers seek court relief
He also expressed concern that, even with labels at the gas pump, consumers might accidentally fuel cars that haven't been approved for E-15 fuel.
Last month, U.S. carmakers and engine manufacturers asked a federal appeals court to require the EPA to reconsider its earlier ethanol decision on cars made since 2007.
Stanton said the lawsuit would probably be expanded to include vehicles covered by today's EPA decision.
There are more than 150 million vehicles made since 2001 on U.S. roads, and they account for 74 percent of vehicle gasoline consumption, EPA spokesman Cathy Milbourn said in an interview.
By 2014, there will likely be 187 million cars and light trucks made since 2001, and they will account for 85 percent of gasoline consumption, she said.
The decision today was hailed by a group of ethanol makers called Growth Energy.
“Increased use of ethanol will strengthen our energy security, create U.S. jobs and improve the environment,” said Tom Buis, CEO of Growth Energy.
The EPA did not grant approval today for E-15 gasoline use in motorcycles, heavy-duty vehicles or non-road engines because testing has not yet determined it is safe, the agency said in a statement.
Monday, January 03, 2011
Getting to 35.5: The ABCs of mpg
When gasoline prices blew past $3 a gallon last week, the highest level in 26 months, it was tough news for consumers but a marketing boost for automakers trying to sell pricey new technology needed to meet tougher fuel economy rules that took effect Jan. 1.
The new era will raise fleet fuel economy standards, in annual steps, to 35.5 mpg for 2016 models, a 30 percent rise from the 27.3 mpg of the 2011 model year.
The first step is a total fleet average of 30.1 mpg for 2012 models, which officially can go on sale this week. Automakers already are accelerating their use of costly lightweight materials and advanced powertrains on the way to 2016.
The latest data from the National Highway Traffic Safety Administration for the 2010 model year show that some companies -- including Toyota, Honda, Hyundai-Kia and Mazda -- are at or above the 2012 standard and are well positioned with their product mix.
For others below the 2012 standard -- such as Chrysler, BMW, Daimler and Porsche -- the requirements will mean an acceleration of steps to slash weight, shuffle products and shrink powertrains.
Those changes don't come cheap. And when gasoline prices are low, the pricey technology is a tough sell.
Transitioning to the new standards is "a tough task, but we're facing it as grown-ups," said Rick Spina, who leads development of full-sized trucks for General Motors Co.
Spina said GM plans to trim 500 pounds from its light trucks by 2016, and by the early 2020s, might need to cut as much as 1,000 pounds per truck.
"We're going to do everything we can to keep the customer from realizing we've had to make changes in a fundamental way," Spina said.
The industry will meet the CAFE challenge with some sophisticated technology: eight-speed automatic transmissions, variable valve timing, electric power steering, stop-start systems, turbochargers, direct injection, hybrid systems and diesels, primarily in light trucks. The technologies are migrating into smaller segments, and smaller engines are moving into larger vehicles.
For 2016 models, the standard for cars rises to 39.5 mpg. But the light-trucks standard for 2016 models -- 29.8 mpg -- will be the greatest challenge. Automakers are scrambling to strip hundreds of pounds from future pickups without sacrificing strength or towing capability.
Ford, like GM, has only one design cycle to make significant changes to its pickup line. And Ford is working quickly to revamp its engine and model offerings.
Next month, Ford will launch a turbocharged engine in the F-150 alongside the recently introduced, naturally aspirated 3.7-liter V-6. 5.0- and 6.2-liter V-8 gasoline engines. Ford says the F-150's turbo, based on the 3.5-liter, V-6 direct injection turbo engine in the Ford Taurus SHO sedan, will still meet truck durability requirements.
Overall, Ford says, fuel economy will improve 20 percent across the F-150 range.
Ford says it will offer EcoBoost turbocharged engines with direct injection on 90 percent of its North American cars and trucks within a couple of years.
Ford will offer four-cylinder EcoBoost engines on smaller vehicles such as the Focus ST, due in 2012. In addition, the 2011 Explorer initially has two engines available, a normally aspirated 3.5-liter V-6 and the new 2.0-liter EcoBoost inline four-cylinder engine. Each of the engines is expected to provide a 30 percent boost in fuel economy over the outgoing body-on-frame Explorers.
Here are other ways automakers are improving fuel efficiency to get to the 2012-model requirements of 25.7 mpg for light trucks, 33.8 mpg for cars and 30.1 mpg for fleets. NHTSA's fuel-economy figures for the 2010 model year indicate how far they have to go.
Chrysler: Help from Fiat
(2010: Trucks, 24.1; Cars, 28.0)
Under the management of Fiat and helped by its technical know-how, Chrysler Group promises a fleet of more fuel-efficient cars. But most of them will not hit the market until 2012.
Chrysler's goal, outlined in its Nov. 4, 2009 business presentation, is to improve fleet fuel economy 25 percent by the end of 2014.
The Pentastar V-6, which first appeared last year in the 2011 Jeep Grand Cherokee, is replacing seven V-6 engine families over a two-year period. The Pentastar alone will improve Chrysler Group's overall fuel economy by 2 mpg, according to company spokesman Vince Muniga. The Pentastar will account for about 40 percent of all Chrysler Group engines by 2014.
Beyond that, the company has announced plans to use a Fiat-designed six-speed dual clutch transmission and an eight-speed automatic for larger vehicles designed by supplier ZF Friedrichshafen.
Starting with the 2012 Fiat 500 minicar, Chrysler will begin using Fiat's MultiAir technology, which improves performance and fuel economy by regulating the intake valves. Fiat says the system improves fuel economy by 10 percent and torque by 15 percent compared with the same 1.4-liter four-cylinder engine without the system.
BMW: 8-speeds, smaller lineup
(2010: Trucks, 23.6; Cars, 28.7)
BMW has spent nearly $1.6 billion this year on fuel-saving technology. And it's about to get a complete makeover with multispeed transmissions, smaller crossovers and downsized engines.
Edmunds.com reports that BMW will have seven models with eight-speed transmissions in the 2011 model year, up from two in the 2010 model year. It also will increase the number of turbochargers from six in the 2009 to 15 this year.
BMW also is adding smaller products and engines. It will bring a new front-wheel-drive family of cars in a class known as UKL, a German abbreviation for lower-compact-class cars.
"It will be a relatively big segment because we have several body styles," Ian Robertson, BMW AG board member for sales and marketing, told Automotive News last fall.
The vehicles will be launched in the next few years, and will come to the United States with four-cylinder engines.
And BMW will concentrate on small crossovers in the next 18 months with a redesigned X3 and the new X1.
Both are based on the redesigned 3-series sedan, which will arrive in 2012 with a twin-turbocharged, direct-injection, four-cylinder gasoline engine which it has used in other markets besides North America.
In 2013, a new sub brand of electric and hybrid vehicles being developed by BMW's Project i group will debut.
EVERY YEAR, A LITTLE TOUGHER
Federal fleet-average mpg standards, by model year
2012 2013 2014 2015 2016
Cars 33.8 34.7 36 37.7 39.5
Light trucks 25.7 26.4 27.3 28.5 29.8
Fleet 30.1 31.1 32.2 33.8 35.5
Daimler: 4 cylinders and small cars
(2010: Trucks, 21.5; Cars: 26.9)
Daimler AG nearly doubled its spending on fuel efficiency on its Mercedes-Benz vehicles in 2010, to $1.3 billion.
In Europe, Mercedes is rolling out an S-class sedan with a four-cylinder engine, a first in the model's 60-year history, and may add the vehicle for North America, dealers say.
Mercedes will ship three compact front-wheel-drive vehicles to the United States starting in 2012, including one with an alternative drivetrain.
Either a compact SUV or a coupe derived from the B-class platform will go on sale first. Neither will wear a B-class badge.
Mercedes will add an electric compact van. It's considering a fuel-cell model or an electric with a range-extending gasoline engine. Details aren't final.
Like BMW, Mercedes will also increase the use of multispeed transmissions. According to press reports, it is developing a nine-speed automatic (dubbed 9G-Tronic) that will debut in the 2012 S Class sedan.
Reuters contributed to this report
2010 MODEL YEAR CAFE RANKINGS
Domestic passenger cars
Rank/manufacturer mpg
1. Tesla 346.8
2. Toyota 36.4
3. Nissan 34.8
4. Honda 34.7
5. Ford 32.3
6. Mazda 31.4
7. GM 30.6
8. Chrysler 28.0
Imported passenger cars
Rank/manufacturer mpg
1. Toyota 44.4
2. Honda 40.9
3. Kia 36.6
4. Hyundai 36.0
5. Mazda 34.5
Light trucks
Rank/manufacturer mpg
1. Hyundai 30.0
2. Subaru 29.9
3. Mitsubishi 28.3
4. Honda 26.9
5. Mazda 26.6
9. GM 25.4
12. Chrysler 24.1
13. Ford 24.0
The EPA calculates CAFE based on gas mileage estimates for each car in an automaker's lineup and the number of those cars produced that year.
The lineups are split into three groups: Domestic passenger cars, which includes cars built using mostly domestically sourced parts, for either an American or foreign nameplate; imported passenger cars, built mostly with parts from abroad; and light trucks, which includes everything from pickups and minivans to crossover SUVs, no matter where their parts come from.
Source: NHTSA, EPA
The new era will raise fleet fuel economy standards, in annual steps, to 35.5 mpg for 2016 models, a 30 percent rise from the 27.3 mpg of the 2011 model year.
The first step is a total fleet average of 30.1 mpg for 2012 models, which officially can go on sale this week. Automakers already are accelerating their use of costly lightweight materials and advanced powertrains on the way to 2016.
The latest data from the National Highway Traffic Safety Administration for the 2010 model year show that some companies -- including Toyota, Honda, Hyundai-Kia and Mazda -- are at or above the 2012 standard and are well positioned with their product mix.
For others below the 2012 standard -- such as Chrysler, BMW, Daimler and Porsche -- the requirements will mean an acceleration of steps to slash weight, shuffle products and shrink powertrains.
Those changes don't come cheap. And when gasoline prices are low, the pricey technology is a tough sell.
Transitioning to the new standards is "a tough task, but we're facing it as grown-ups," said Rick Spina, who leads development of full-sized trucks for General Motors Co.
Spina said GM plans to trim 500 pounds from its light trucks by 2016, and by the early 2020s, might need to cut as much as 1,000 pounds per truck.
"We're going to do everything we can to keep the customer from realizing we've had to make changes in a fundamental way," Spina said.
The industry will meet the CAFE challenge with some sophisticated technology: eight-speed automatic transmissions, variable valve timing, electric power steering, stop-start systems, turbochargers, direct injection, hybrid systems and diesels, primarily in light trucks. The technologies are migrating into smaller segments, and smaller engines are moving into larger vehicles.
For 2016 models, the standard for cars rises to 39.5 mpg. But the light-trucks standard for 2016 models -- 29.8 mpg -- will be the greatest challenge. Automakers are scrambling to strip hundreds of pounds from future pickups without sacrificing strength or towing capability.
Ford, like GM, has only one design cycle to make significant changes to its pickup line. And Ford is working quickly to revamp its engine and model offerings.
Next month, Ford will launch a turbocharged engine in the F-150 alongside the recently introduced, naturally aspirated 3.7-liter V-6. 5.0- and 6.2-liter V-8 gasoline engines. Ford says the F-150's turbo, based on the 3.5-liter, V-6 direct injection turbo engine in the Ford Taurus SHO sedan, will still meet truck durability requirements.
Overall, Ford says, fuel economy will improve 20 percent across the F-150 range.
Ford says it will offer EcoBoost turbocharged engines with direct injection on 90 percent of its North American cars and trucks within a couple of years.
Ford will offer four-cylinder EcoBoost engines on smaller vehicles such as the Focus ST, due in 2012. In addition, the 2011 Explorer initially has two engines available, a normally aspirated 3.5-liter V-6 and the new 2.0-liter EcoBoost inline four-cylinder engine. Each of the engines is expected to provide a 30 percent boost in fuel economy over the outgoing body-on-frame Explorers.
Here are other ways automakers are improving fuel efficiency to get to the 2012-model requirements of 25.7 mpg for light trucks, 33.8 mpg for cars and 30.1 mpg for fleets. NHTSA's fuel-economy figures for the 2010 model year indicate how far they have to go.
Chrysler: Help from Fiat
(2010: Trucks, 24.1; Cars, 28.0)
Under the management of Fiat and helped by its technical know-how, Chrysler Group promises a fleet of more fuel-efficient cars. But most of them will not hit the market until 2012.
Chrysler's goal, outlined in its Nov. 4, 2009 business presentation, is to improve fleet fuel economy 25 percent by the end of 2014.
The Pentastar V-6, which first appeared last year in the 2011 Jeep Grand Cherokee, is replacing seven V-6 engine families over a two-year period. The Pentastar alone will improve Chrysler Group's overall fuel economy by 2 mpg, according to company spokesman Vince Muniga. The Pentastar will account for about 40 percent of all Chrysler Group engines by 2014.
Beyond that, the company has announced plans to use a Fiat-designed six-speed dual clutch transmission and an eight-speed automatic for larger vehicles designed by supplier ZF Friedrichshafen.
Starting with the 2012 Fiat 500 minicar, Chrysler will begin using Fiat's MultiAir technology, which improves performance and fuel economy by regulating the intake valves. Fiat says the system improves fuel economy by 10 percent and torque by 15 percent compared with the same 1.4-liter four-cylinder engine without the system.
BMW: 8-speeds, smaller lineup
(2010: Trucks, 23.6; Cars, 28.7)
BMW has spent nearly $1.6 billion this year on fuel-saving technology. And it's about to get a complete makeover with multispeed transmissions, smaller crossovers and downsized engines.
Edmunds.com reports that BMW will have seven models with eight-speed transmissions in the 2011 model year, up from two in the 2010 model year. It also will increase the number of turbochargers from six in the 2009 to 15 this year.
BMW also is adding smaller products and engines. It will bring a new front-wheel-drive family of cars in a class known as UKL, a German abbreviation for lower-compact-class cars.
"It will be a relatively big segment because we have several body styles," Ian Robertson, BMW AG board member for sales and marketing, told Automotive News last fall.
The vehicles will be launched in the next few years, and will come to the United States with four-cylinder engines.
And BMW will concentrate on small crossovers in the next 18 months with a redesigned X3 and the new X1.
Both are based on the redesigned 3-series sedan, which will arrive in 2012 with a twin-turbocharged, direct-injection, four-cylinder gasoline engine which it has used in other markets besides North America.
In 2013, a new sub brand of electric and hybrid vehicles being developed by BMW's Project i group will debut.
EVERY YEAR, A LITTLE TOUGHER
Federal fleet-average mpg standards, by model year
2012 2013 2014 2015 2016
Cars 33.8 34.7 36 37.7 39.5
Light trucks 25.7 26.4 27.3 28.5 29.8
Fleet 30.1 31.1 32.2 33.8 35.5
Daimler: 4 cylinders and small cars
(2010: Trucks, 21.5; Cars: 26.9)
Daimler AG nearly doubled its spending on fuel efficiency on its Mercedes-Benz vehicles in 2010, to $1.3 billion.
In Europe, Mercedes is rolling out an S-class sedan with a four-cylinder engine, a first in the model's 60-year history, and may add the vehicle for North America, dealers say.
Mercedes will ship three compact front-wheel-drive vehicles to the United States starting in 2012, including one with an alternative drivetrain.
Either a compact SUV or a coupe derived from the B-class platform will go on sale first. Neither will wear a B-class badge.
Mercedes will add an electric compact van. It's considering a fuel-cell model or an electric with a range-extending gasoline engine. Details aren't final.
Like BMW, Mercedes will also increase the use of multispeed transmissions. According to press reports, it is developing a nine-speed automatic (dubbed 9G-Tronic) that will debut in the 2012 S Class sedan.
Reuters contributed to this report
2010 MODEL YEAR CAFE RANKINGS
Domestic passenger cars
Rank/manufacturer mpg
1. Tesla 346.8
2. Toyota 36.4
3. Nissan 34.8
4. Honda 34.7
5. Ford 32.3
6. Mazda 31.4
7. GM 30.6
8. Chrysler 28.0
Imported passenger cars
Rank/manufacturer mpg
1. Toyota 44.4
2. Honda 40.9
3. Kia 36.6
4. Hyundai 36.0
5. Mazda 34.5
Light trucks
Rank/manufacturer mpg
1. Hyundai 30.0
2. Subaru 29.9
3. Mitsubishi 28.3
4. Honda 26.9
5. Mazda 26.6
9. GM 25.4
12. Chrysler 24.1
13. Ford 24.0
The EPA calculates CAFE based on gas mileage estimates for each car in an automaker's lineup and the number of those cars produced that year.
The lineups are split into three groups: Domestic passenger cars, which includes cars built using mostly domestically sourced parts, for either an American or foreign nameplate; imported passenger cars, built mostly with parts from abroad; and light trucks, which includes everything from pickups and minivans to crossover SUVs, no matter where their parts come from.
Source: NHTSA, EPA
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