The Obama administration yesterday announced its rule that will set a 35.5 mpg average for the U.S. auto industry by 2016, a move that will cut fuel consumption by 40% and realize $130 billion in benefits. Despite their $52 billion burden, manufacturers welcome the the standards, as it will avoid a much more costly patchwork of state and federal regulation.
The cost expected to be shouldered by the consumer works out to less than $1,000 per new vehicle sold in 2016, but should be expected to be recouped in three-years in fuel-savings.
This rule represents the first limit by the federal governemnt on greenhouse gas emissions.
– By: Stephen Calogera
Source: Free Press