EPA Data Shows Large Variance In Manufacturer's Costs to Meet CAFE Standard

Data Source: Compare and Rank Cars and Light Trucks by MPG
Data Source: Patriotic Americans Choose Flex-Fuel Vehicles

Washington DC March 14, 2011; The AIADA newsletter reported that the New York Times asked: How much will it cost auto manufacturers – and ultimately, consumers – to reach the new Corporate Average Fuel Economy (CAFE) standards, the rules that require all major auto manufacturers to achieve a company fuel-economy average of 34.1 mpg by 2016, up from the current 27.5?

According to estimates from the Environmental Protection Agency (EPA), the costs vary among manufacturers. The agency has said that, on average, each car and light truck required $948 worth of efficiency improvements.

From that number, the agency subtracted an average of about $4,000 in projected fuel savings over the lifetime of a 2016 vehicle, resulting in net savings of about $3,000 per vehicle owner.

Broken down by manufacturer, however, a very different picture emerges. The EPA estimates it will cost Toyota just $455 per vehicle to reach 2016 compliance. At the low-cost end of the spectrum, Kia is right behind Toyota at $501 per vehicle, with Honda next at $574 and Hyundai at $745.

Some fleets have an advantage because their fleets are already quite efficient.

Click here for the New York Times rundown – including a list of manufacturers – of the EPA’s list of average car/truck cost estimates for complying with 2012-16 CAFE standards.