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Iowa to Be Affected by New 'Mileage Mandate'

27 August 1999

Iowa to Be Affected by New 'Mileage Mandate'

    WASHINGTON, Aug. 26 -- Iowa is among the top states to be
affected by a new "miles per gallon" mandate expected to be voted on soon by
the U.S. Senate.
    "People in Iowa are choosing light trucks to meet their work, leisure and
family needs.  For this reason, the state will be adversely affected by a new
miles per gallon mandate that is being suggested in Washington, D.C.," said
Josephine S. Cooper, President, Alliance of Automobile Manufacturers.
"Automakers are already producing fuel-efficient vehicles, and this mandate
would only limit consumer choice, especially for light trucks."
    Pickups, minivans, vans and sport utility vehicles are all considered to
be "light trucks" under the miles per gallon mandate.  In Iowa, more than 40%
of the vehicles on the road are light trucks, and their popularity is growing.
According to the latest data, in 1998 Iowans bought more light trucks than
passenger cars.
    The U.S. Senate may vote in early September on a resolution calling for an
increase in the Corporate Average Fuel Economy (CAFE) requirements.  This
miles per gallon mandate requires all auto manufacturers selling in the U.S.
to meet certain fuel economy levels for their entire fleet.  Cars and light
trucks are required to meet separate fuel economy averages.  In 1975, Congress
enacted the CAFE mandate in response to the earlier oil embargo.
    Today, each manufacturer's fleet must average 27.5 miles per gallon (mpg)
for cars and 20.7 mpg for light trucks.
    "Automakers are already achieving high fuel economy," said Cooper.  "Over
the past 20 years fuel-efficiency in all cars has been improved by more than
100%.  In 1975, the average passenger car got 13 miles per gallon.  Today, the
average car goes more than twice as far -- 28 miles -- on one gallon of gas.
Today's pickup, minivan and SUV gets better mileage than a subcompact car did
in the 1970s."
    "An increase in the miles per gallon mandate will hit hardest on those who
depend on minivans, pickups and SUVs for their livelihood -- from farmers to
ranchers to tradesmen to small business owners -- because of increased costs
and decreased choice and availability.  Under this new mandate, some vehicles
may cost more.  Some may have six cylinders -- not eight.  Some may not be
available anymore," said Cooper.
    Light trucks are the most popular vehicles in Iowa.  In 1998, new
registrations of light trucks were 67,064, representing 55% of all new vehicle
registrations in Iowa.  The totals for new registrations of vehicles in the
light-truck categories are: pickup trucks (34,259); sport utility vehicles
(18,296); minivans (12,205); and vans (2,304).  New registrations of passenger
cars were 54,566, or 45% of all registrations.
    Technologies that resulted in significant car fuel economy improvements,
such as front wheel drive and aerodynamic improvements, aren't always
practical on trucks.  But, manufacturers are now focused on developing
advanced engine technologies -- such as lean burn, compression ignition,
direct injection, hybrids and fuel cells -- that could dramatically increase
fuel economy for light trucks in the near future.
    Cooper said it is tougher to increase the fuel economy of light trucks
without compromising the functions for which they are designed, such as towing
and load-carrying capacity and greater room for cargo and passengers.  "As
we've made cars more fuel-efficient, they've lost some of their capabilities,"
said Cooper.  Only about 6% of today's passengers cars have sufficient towing
capacity for the average size fishing boat, while 70% of cars in the 1960s had
such towing ability.
    "As automakers head into the next century, advancements are being made on
many fronts.  Automotive engineers are working now on technology that will
produce dramatic fuel-efficiency gains.  Tomorrow's vehicles may achieve as
high as double or triple the mileage of conventional cars -- without
sacrificing utility, affordability or safety," said Cooper.
    The Alliance of Automobile Manufacturers is a coalition of car and light
truck manufacturers. Alliance member companies have approximately 600,000
employees in the United States, with more than 250 manufacturing facilities in
35 states.  Alliance members represent more than 90 percent of U.S. vehicle
sales.