Obama reaches agreement with automakers for increased gas mileage target

President Barack Obama announced an agreement with 13 major automakers to pursue the next phase in the administration’s national vehicle program, increasing fuel economy to 54.5 miles per gallon for cars and light-duty trucks by Model Year 2025.
Obama was joined by Ford, GM, Chrysler, BMW, Honda, Hyundai, Jaguar/Land Rover, Kia, Mazda, Mitsubishi, Nissan, Toyota and Volvo – which together account for over 90% of all vehicles sold in the United States – as well as the United Auto Workers (UAW) and the State of California, who were integral to developing the agreement.
“This agreement on fuel standards represents the single most important step we’ve ever taken as a nation to reduce our dependence on foreign oil,” Obama said. “Most of the companies here were part of an agreement we reached two years ago to raise the fuel efficiency of their cars over the next five years. We’ve set an aggressive target and the companies are stepping up to the plate.  By 2025, the average fuel economy of their vehicles will nearly double to almost 55 miles per gallon.”
Building on the Obama administration’s agreement for Model Years 2012-2016 vehicles, which will raise fuel efficiency to 35.5 mpg and begin saving families money at the pump this year, the next round of standards will require performance equivalent to 54.5 mpg or 163 grams/ mile of CO2 for cars and light-duty trucks by Model Year 2025.
Achieving the goals of the agreement will rely on innovative technologies and manufacturing that will spur economic growth and create high-quality domestic jobs in cutting edge industries across America, Obama said.
Together, they will save American families $1.7 trillion dollars in fuel costs, and by 2025 result in an average fuel savings of more than $8,000 per vehicle, according to the administration.
Additionally, the programs will dramatically reduce the oil the nation consumes by 2.2 million barrels a day by 2025, the administration said.
The standards also will curb carbon pollution, cutting more than 6 billion metric tons of greenhouse gas over the life of the program – more than the amount of carbon dioxide emitted by the United States last year, the administration said.
The administration released a new report, “Driving Efficiency: Cutting Costs for Families at the Pump and Slashing Dependence on Oil.”