President Obama announced last week a historic agreement with thirteen major automakers to increasing fuel economy to 54.5 miles per gallon for cars and light-duty trucks by Model Year 2025. This will save U.S. drivers $1.7 trillion in fuel costs with today’s oil prices of about $100 per barrel. If the price of oil is higher in 2025, consumers will save more.
The President was joined by Ford, GM, Chrysler, BMW, Honda, Hyundai, Jaguar/Land Rover, Kia, Mazda, Mitsubishi, Nissan, Toyota and Volvo. Fuel economy will help automakers lower the lifetime cost of operating cars. By 2025, new cars will average the fuel economy of today’s popular Prius Liftback. Next year, Toyota will already start selling cars with better MPG than the classic Prius including the Prius Plug-in Hybrid, Prius C, and RAV4 EV.
Toyota is now scrambling to hold its fuel-economy lead as scramble to up their forecast for the Nissan Leaf, Chevrolet Volt, Ford Focus Electric, and Honda Fit Electric just to name a few new electric cars.
Forecasts of 10 million electric cars by 2020 in the U.S. look more likely. High volumes will lower the cost of lithium battery packs and electric motors, which are also used in hybrids. By 2013, at least one of these automakers will sell 100,000 electric cars and hybrids in one year – Toyota, GM, Nissan, and Ford.
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