Truck, SUV fuel economy proposals in US frustrate Japanese, Korean importers

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By Tim Beissmann | July 11th, 2011

Japanese and Korean new vehicle manufacturers believe they will be disadvantaged if new fuel economy standards are approved in the US.

Current proposals would make the standards more lenient for the biggest trucks and SUVs, segments that US manufacturers Chrysler, Ford and General Motors dominate.

The proposed standards would be introduced in 2016, aiming to increase the average new vehicle fleet economy to 56.2mpg (4.2 litres/100km) by 2025.

Compact trucks and SUVs – segments that importers like Toyota, Honda and Hyundai perform strongly in – would need to reach new fuel efficiency targets by the 2017 model year, and continue to make improvements each year until 2025.

Meanwhile, the largest trucks and SUVs, which have the poorest economy and are also responsible for the highest tailpipe emissions, would not have to meet new targets until 2020, with small improvements to follow each year after that.

According to The Wall Street Journal, executives from Japanese and Korean car manufacturers have met with White House representatives claiming the proposals give the Detroit Three a free kick that will impact the competitive balance of the industry for years into the future. They also believe the rules may actually encourage new car shoppers to buy less fuel efficient vehicles.

A White House spokesman said a final decision was still to be made and said administrators were working towards “saving families money and reducing dependence on oil”.

Manufacturers from the US, Asia and Europe have been in daily discussions with the government over the upcoming economy standards, with a deal expected to be announced in the coming weeks.

What do you think of the proposals? Is it fair that smaller cars, trucks and SUVs have to meet standards before the biggest trucks and SUVs? Shouldn’t the biggest emitters be encouraged to make the biggest economy improvements? Let us know your thoughts in the comments section below.

http://www.facebook.com/priusfreezone Matthew Werner

I would’ve thought the same percentage across the board woudl be fairer. 10% improvement for a Fiesta, 10% improvement for a F-250, etc.
GTI

I wonder if greenpeace will arc up here and criticize the japs and Koreans for not doing enough to lower there emissions?
Mad Max

Seems to me that the US government are doing what any government should do and thats protect the interests of their own domestic industry. Comrade Julia, are you listening????

Thomas

I don’t know about your sadomasochistic tendencies, but I’m personally not into flogging dead horses. The sooner we stop wasting money on trying to keep up with the Korean and Japanese auto manufacturing industries, the sooner we can start refocussing our core strengths as a country – and I’ll tell you right now, these strengths are not found in car manufacturing.

costa

One word B######t!!! 90% of the economy on most countries around the world is based around Manufacturing and autos are in the top 5 percent.

Riguez

That 90% stat is off by a very large margin. Most countries industrial sectors average about 20-50% of GDP, (and that sector grouping is much broader than manufacturing alone, as it includes mining/extraction)
I doubt you could find a single country on the planet that relies on manufacturing for 90% of its GDP.
Dave S

The last thing we want to do is become a giant warehouse.
produce nothing and accept what magin we can get.

We need to support our manufacturing.

QAZ

Most stupid comment ever. People on this forum know nothing except cars.

Riguez

Agree with you QAZ about the quality of the comment.
Ignorance mixed with aggressive outspokenness is a terrible combination. Those with the problem need to either get knowledgeable… or become timid.

AMAC

To Tommo,

Just buy Australian products and forget about the others.
That might help Australia’s “CORE STRENGTH” as you have focussed on, may-be Ford should reconsider building the Focus here just for you.

whatthe..

So we ge a Carbon tax and the yanks get incentives to pollute.

thanks Julia.

Phil

Yea maybe thats one of the reasons why Australia is a cleaner place to live.

Carbon Shmarbon

Or maybe because there is 250millon more people in the US.

Jimmy

Don’t let us stop you if you want to move to America. I don’t know about you, but I’d rather live in a country that has an environmental conscience and has some foresight regarding the direction many industries are heading. I realise the carbon tax isn’t perfect, but it’s at least a start and more than what US (the world’s second larget polluter) is currently doing.
Tom

Connecticut, Delaware, Maine, New Hampshire, New Jersey, New York, Vermont, Massachusetts, Rhode Island and Maryland already have an emissions trading scheme up and running, whilst Arizona (USA), California (USA), New Mexico (USA), Oregon(USA), Washington (USA), Utah (USA), Montana (USA), British Columbia (Can), Manitoba (Can), Ontario (Can), and Quebec (Can)Iowa (USA), Illinois (USA), Kansas (USA), Michigan (USA), Minnesota (USA), Wisconsin (USA) and Manitoba (Can) are developing schemes at present.
Lazybones

so 10% of the US now 10% later…awesome effort for the most powerful economy in the world.

delux

With ever incresing fuel prices and americans already moving to smaller cars, i wonder if the large truck segment will be that large come 2020.
JP

Exactly Max.

Try importing cars into Korea or Japan.
The Red Tape & Taxes are enormous.

If we did that here, it’d be called Racism…..
Oosh

CAFE is a ridiculous piece of legislation, it has always been riddled with loopholes, and prone to abuse.

You need only look at the ‘light-truck’ that is the PT Cruiser, and the fact luxury marques simply ignore it, pay the fines and up their list prices accordingly.

Time to introduce a GAS TAX, phase it in to avoid disadvantaging older car owners to badly, politically unpalatable as it may be it is the most effective mechanism to get people to purchase more fuel efficient cars.
http://www.facebook.com/profile.php?id=1715760895 Charles Dean

Toyota Camry and Honda Accord are the most ‘American’ cars in USA.. they’re more American then any GM or Ford
http://hilly78@bigpond.com.au Cobra

At last we have a govenment that has the guts to do some thing about it. That is true, Australia is certainly a cleaner place to live and for our kids as well. Whether Holden start to wake up in making smaller engines, out the door with Ford behind them.

Roger Ramjet

Why do so many of you think that the Carbon Tax is about our environment?
It is an excuse to pay for all the mismanagement and a new revenue stream based on using carbon pollution as an excuse or guilt trip!

Crossy

Because that’s what the gov’t wants. These people think they are saving the planet by paying more tax.
Talk about brain washed!

costa

Now That would have to be the most nayieve rubbish i have ever read, the point is I along with any Australian would have liked the opportunity to have a say on the rubbish Julia is selling and don’t kid yourself this country will end up in the poor house if we don’t have an industry to support itself… can you say Greece.
The technology that Julia is talking up hasn’t even been invented yet so unless you can figure out how to buld a car using solar power then please let us know cause i thing even the Japanese would love to know.

Andrew M

To answer Tims question,

I believe there should be a concession for trucks etc.

Ford and GM in the US have a business where part of their core is centered around supplying the larger vehicles that in one way or another have a purpose.

Thats like asking Kenworth to suddenly average their fleet at 4.2L/100k.
We need to realise that for the way we operate not to be turned on its head overnight that there needs to be consideration given to the extreme items.

costa

don’t forget Chrysler dude lol

http://Caradvice onepoppa

Just about all of the rest of the world manages to run their commercial activities with vehicles smaller than the behemoths which are termed “light trucks”. We have a big country and can run it uising High Aces, Navarras and the like. without the massive Ford F Series, whopping RAMS and their GM counterparts, so why should they receive any exemptions whatsoever? US assembly lines could still function and provide jobs by making vehicles more realistic in their fuel use.
Glen

We are running out of oil and producing too much CO2. I think the sales tax on new vehicles in the USA and here should depend on their CO2 emissions. I suggest the sales tax start at twenty times their CO2 (in g/km) emissions, with no sales tax if their CO2 output is less than 150g/km. Our oil supplies will last longer and the environment will be better off.
Sumpguard

Forget the arguuement about clean air and all that crap for a moment. Have the Americans learnt nothing about peak oil? They are less than 4 percent of the world’s population yet use 25% of it’s oil. Hardly fair!

One set of rules for the rest of the world and another set for their own people. Free trade?
save it for the track

It SHOULD be much easier to find fuel savings on higher consumption vehicles than lower. I do see the issue in using percentages though. If a 20L/100km vehicle needs to cut 10%, that is a 2L/100km saving that will likely require weight savings along with engine and other modifications. Whereas, a 10L/100km vehicle only needs to cut 1L/100km. It could also be seen as a disadvantage to those that have already made fuel savings in smaller vehicles (or even midsize) like say…Hyundai, VW (where’s the greenies on this?)