Government Agencies Sign Rules for New U.S. CAFE Standards; Edmunds.com Comments

SANTA MONICA, Calif.--The U.S. Environmental Protection Agency and U.S. Transportation Department will sign on Thursday a joint final rule establishing greenhouse gas emission standards and Corporate Average Fuel Economy (CAFE) standards for light-duty vehicles for model years 2012-2016.

“Yet CAFE does not address the demand side of the equation.”

“Automakers currently offer consumers a full menu of great fuel-efficient vehicles today – diesels, hybrids, electrics, small gas sippers and bigger vehicles -- that now get better fuel economy than ever before,�?? Edmunds.com CEO Jeremy Anwyl told AutoObserver.com. “But consumers generally aren’t interested, especially when gas prices remain relatively low and no incentives are available to purchase more fuel-efficient vehicles.�??

Anwyl noted that in other countries a heavier tax is levied on vehicles with higher horsepower and bigger engines.

In addition to the EPA/DOT announcement, President Obama today announced that 5,603 new hybrid cars and trucks have been ordered by the federal fleet to boost its fuel efficiency.

“While it is noble that the federal government is ordering a few fuel-saving vehicles, the consumer needs some kind of nudge to buy more fuel-efficient vehicles,�?? Anwyl commented. “Yet CAFE does not address the demand side of the equation.�??

For manufacturers to produce what the government demands -- but what the consumer doesn’t buy -- risks economic suicide, added Anwyl.

In addition, Edmunds’ GreenCarAdvisor.com published a story last year titled “When CAFE Meets EPA: A Tale of Two Fuel Economy Standards,�?? which discussed the differences between CAFE and EPA fuel economy numbers. It can be found at http://blogs.edmunds.com/greencaradvisor/2009/05/when-cafe-meets-epa-a-tale-of-two-fuel-economy-standards.html.

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Edmunds.com Inc. publishes four Web sites that empower, engage and educate automotive consumers, enthusiasts and insiders. Edmunds.com, the premier online resource for automotive information, launched in 1995 as the first automotive information Web site. Its mobile site, accessible from any smartphone at www.edmunds.com, makes car pricing and other research tools available for car shoppers at dealerships and otherwise on the go. InsideLine.com is the most-read automotive enthusiast Web site. Its mobile site, accessible from any smartphone at www.insideline.com, features the wireless Web’s highest quality car photos and videos. CarSpace is the most established automotive social networking Web site. AutoObserver.com provides insightful automotive industry commentary and analysis. Edmunds.com Inc. is headquartered in Santa Monica, California, and maintains a satellite office in suburban Detroit. Follow Edmunds.com on Twitter @edmunds and fan Edmunds.com on Facebook at http://www.facebook.com/edmunds.