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Average Fuel Economy Hits 24 MPG For First Time Ever

Report shows new cars' fuel efficiency is rising steadily thanks to government regulations and high gas prices.

By Claire_Martin Apr 12, 2012 2:39PM
Subaru Forester Photo by Subaru.While car buyers were holding on to their old rides during the recession of the past few years, automakers were improving new vehicles' fuel economy -- spurred by rising gas prices and aggressive government regulations. March saw the highest fleetwide fuel-economy numbers in history, according to a new report from the University of Michigan Transportation Research Institute. The average fuel economy for new cars was 24.1 mpg, an improvement of four mpg over new vehicles produced in October 2007. 

"Three years ago, about 16 percent of the vehicles GM sold achieved at least 30 mpg on the highway," General Motors North America President Mark Reuss told the Detroit News. "Today, that number is about 40 percent."

The rise in gas prices has caused car buyers to gravitate toward more efficient models, but government regulations are also behind the improvement: Automakers are required to hit a 34.1 mpg mark for average fuel economy by 2016. And the Detroit News is reporting that 13 carmakers have signed off on a proposed requirement of 54.5 mpg by 2025.

All of this means that one surprising benefit to the slow economy is that the fuel efficiency of cars on the road will spike more quickly in the coming years as lower-mpg vehicles replace older models.

And while government regulations will cost the industry $157.3 billion in the short term -- and mean the price of new vehicles in 2025 will jump by about $3,000 over current prices -- the silver lining will reveal itself at the pump, where drivers eventually will find significant savings: A total of $1.7 trillion will be saved, according to Obama administration estimates. 
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DeuteriumOx
Apr 13, 2012 2:40AM
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"All of this means that one surprising benefit to the slow economy is that the fuel efficiency of cars on the road will spike more quickly in the coming years as lower-mpg vehicles replace older models."

Don't you mean higher-mpg models?

WS6 Trans Am
Apr 15, 2012 2:53PM
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Well considering people cannot really afford vehicles right now (despite the incresases in sales the average age of cars keeps climbing somehow) the higher cost of the cars will do what for people?  And the $3,000 extra cost wont add up to any savings at the pump unless gas is roughly $8 a gallon.

 

Where do these tools get their numbers from and who taught them how to do math?

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