P&A Providers & Administrators
MenuMENU
SearchSEARCH

White House Said to Propose 54.5 MPG Fuel-Economy Goal for 2025

July 27, 2011
4 min to read


President Barack Obama’s administration altered its proposal for a 2025 U.S. fuel-economy average to 54.5 miles per gallon to make allowances for light trucks, people familiar with the negotiations said.


General Motors Co., Ford Motor Co. and Chrysler Group LLC are reaching an agreement with the White House on the framework for the 54.5 mpg rule, three people familiar with the talks said. Automakers are waiting for paperwork later today from the White House to formalize agreements, and the administration may announce a deal by the end of the week, one of the people said. The people declined to be identified because talks are ongoing, reported Bloomberg.

Ad Loading...


The new fuel-economy target is a reduction from 56.2 mpg sought in a proposal to automakers last month. It may reflect the White House’s desire to reach agreement as soon as possible, the people said. The rule may include credits for some types of technology, said three people with knowledge of the talks, who declined to be identified.


“This seems to be how the game is played -- they put a big fuel economy number out there and then introduce loopholes,” said Jeremy Anwyl, CEO of Edmunds.com, a Santa Monica, California-based website that tracks auto sales and pricing data. “They want to try to keep everyone happy.”


The White House is pressuring automakers to agree to a framework for a rule to be released by Sept. 30, said two people, who asked not to be identified because the negotiations are confidential. The rule is to take effect in 2017.


The proposal includes credits for equipment that can reduce fuel consumption, such as technology that shuts off engines when cars are idling and louvered front grilles, three people said.


Greg Martin, a spokesman for GM, and Linda Becker, a spokeswoman for Chrysler, declined to comment. Christin Baker, a spokeswoman for Ford, didn’t immediately respond to a phone message and e-mail left after regular business hours.

Ad Loading...


The Environmental Protection Agency and National Highway Traffic Safety Administration are writing the rule with California’s Air Resources Board, which has the authority to write its own air-quality rules if it disagrees with U.S. rules. If California hadn’t agreed to the proposal, it wouldn’t have been offered to automakers, a person briefed on the negotiations said.


Spokesmen for the EPA and NHTSA declined to comment on the negotiations. Stanley Young, an Air Resources Board spokesman, didn’t respond to an e-mail seeking comment.


This week’s proposal to automakers would allow pickups and sport-utility vehicles to improve fuel economy more slowly than cars for the first five years and would give manufacturers credits for hybrid trucks, said two people who declined to be identified. Under previous fuel-economy rules, light trucks have had lower mpg targets than cars.


The plan also includes different targets for so-called work trucks, which are heavier than most pickups, SUVs and minivans that count as light trucks, one person said.


Automakers may seek some relief on pickup trucks so they can still be built with engines powerful enough to handle the workload required by some customers, said Jim Hall, principal of 2953 Analytics Inc., a consulting firm in Birmingham, Michigan.

Ad Loading...


Pickup trucks need more powerful engines for hauling. Those larger V-8 engines are less fuel efficient and carmakers are concerned that meeting regulations will make it difficult to sell pickups in the volume that the market demands.


“They have to do it,” Hall said in a telephone interview. “This is a vehicle that has a specific function for working.”


Talks have slowed because of a midterm review proposal, favored by automakers, which would require regulators to assess the standard and potentially raise or lower it midway through the rule’s span, two people said.


Automakers have said one reason they want the review is because the time frame is double that of the 2012-2016 rule that takes effect next year. A midterm review would give regulators a chance to reassess assumptions that the needed engine technology will exist, Ellen Gleberman, a vice president of Washington- based trade group Global Automakers, said last week.


Initially, the administration wanted to allow regulators to decide if a review was needed. Automakers are pushing to establish a set of criteria that could trigger a midterm review, one person said. That would make it tough for regulators to refuse to do it, the person said.

Ad Loading...


Wade Newton, a spokesman for the Alliance of Automobile Manufacturers, declined to comment on the details of the discussions. Members of the Washington-based association include Ford, Toyota Motor Corp., Chrysler and GM.


“Productive discussions are under way among the automakers and administration,” he said.


The Auto Alliance and Ceres, a Boston-based coalition that includes environmental groups, have been running competing radio ads across the U.S. saying, respectively, a tougher fuel-economy standard would cost or create jobs.

More Industry

Subwoofer in trunk of car.
Industryby Lauren LawrenceMay 26, 2026

Ownership Priorities are Shifting

A new survey shows that in the U.S. vehicle quality for generation Z is largely defined by advanced safety features, intuitive technology and premium sound systems.

Read More →
Man's hand holding gas pump in fuel tank of white car
Industryby Hannah MitchellMay 26, 2026

Pump Price Jump Calculated

ISeeCars.com examined fuel costs for different power trains, finding which ones have experienced the biggest hits since the war in Iran commenced.

Read More →
Graphic showing previous week's truck and SUV segment prices
Industryby StaffMay 20, 2026

Black Book: Weekly Market Update

Wholesale values fell last week despite the spring season still being in the traditional full-gear mode, analysts said.

Read More →
Ad Loading...
Photo of dealership sign with Toyota logo
Industryby Lauren LawrenceMay 19, 2026

Arkansas Auto Group Acquires First Indiana Rooftop

Performance Brokerage Services represented both the buyer and seller in the sale of Carver Toyota of Columbus by Carlock Automotive Group.

Read More →
Headshot photo of Antonio Filosa, Stellantis CEO
Industryby Hannah MitchellMay 19, 2026

Stellantis to Dive Into U.S. Lending

The multinational maker of Chrysler, Dodge, Jeep, Ram and multiple other brands received conditional approvals for a Utah-based industrial bank.

Read More →
Photo of the rear of a new BMW iX SUV
Industryby Hannah MitchellMay 12, 2026

New-Vehicle Prices Rise

With April sales down, higher prices on in-demand large vehicles helped inflate the overall ATP, though increases were under long-term averages, Cox Automotive reported.

Read More →
Ad Loading...
Graphic of car segments' results the previous week
Industryby StaffMay 12, 2026

Black Book: Weekly Market Update

Last week in the wholesale automotive market proved to be a mixed bag, analysts reported.

Read More →
Graphic of last week's estimated used retail days to turn
Industryby StaffMay 6, 2026

Black Book: Weekly Market Update

Conversion rates were flat last week at 63%, Black Book analysts calculated, as low-mileage and almost-near units outpaced the overall market.

Read More →
cargo ship with vehicles, at dock
Industryby Lauren LawrenceMay 5, 2026

EU Auto Association Urges Action

Trade relations between the European Union and the U.S. are at risk, causing the European Automobile Manufacturers Association to push lawmakers to make a decision.

Read More →
Ad Loading...
two people working on a paper contract together
IndustryMay 1, 2026

Driving into the Super CFC Era

Understanding the risks and benefits of retail accounting and Super CFCs can help you better present options to your dealer partners.

Read More →