Fed may require at least 2% gain in fuel efficiency annually

President Barack Obama

The federal government has said that it won’t be requiring annual improvements of fuel-efficiency of less than 2% between 2017 and 2025, but have also said that an annual improvement of 7% is the most automakers can be expected to reach.

The NHTSA said Tuesday that it is researching the impact of raising fuel-efficiency in that range, annually. The agency will take into account a number of factors before a final determination is made, including costs and safety impacts.

The NHTSA and the EPA said previously that they are working in tandem to bring a 3% – 6% increase annually. That would require a fleet-wide average of 47-62 mpg by 2025.

Such changes will increase the price of autos between $770 and $3,500.

– By: Stephen Calogera

Source: Detroit News