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US Fuel Economy Regulations: Tighter Standards Coming

On Friday, April 1, the National Highway Traffic Safety Administration (NHTSA) announced the final national fuel economic standards for light vehicles in the 2024-2026 model year. The new goal will replace the 1.5% / year fuel economy improvement included in the Safer Affordable Fuel-Efficient (SAFE) regulations passed in 2020.

By the 2026 model, the new fuel economy targets are in close agreement with EPA’s CO.2 Target released in December 2021. The result is a forecast of the national light vehicle fleet average of 49mpg for the 2026 model. Our vehicle and drivetrain forecasts are ultimately equivalent to existing EPA standards, so we are already considering the changes finalized by the new fuel economy method.

In drafting the new fuel economic goals, the Commission took into account California and the states in Section 177 that have adopted or will adopt zero-emission vehicle (ZEV) regulatory targets. We also took into account the fact that some OEMs chose to continue pursuing more ambitious CO, despite weakening SAFE regulations.2 Goal, sign another agreement with California. In addition, sales of battery-powered electric vehicle (BEV) models in the United States increased from 1.8% in 2020 to 2.7% in 2021 and 4.3 in the first two months. Up to%, has increased dramatically over the last two years. In 2022.

BEVs are not required to be sold, but they play a powerful role for many OEMs in meeting the standards. Tesla currently dominates the US BEV market (which will account for 66% of 2021 sales), while other brands are attractive with a starting price of around US $ 40,000, including Volkswagen ID.4 and Ford Mustang. We are developing a mass-produced model that is affordable and targeted. Mach-E to increase sales. Based on this momentum, the Chevrolet Equinox EV will be launched in 2023 with a starting price of approximately US $ 30,000. Several full-size electric pickups are also available, including the recently launched Hummer EV and Ford F-150 Lightning, and the BEV market is almost certain to grow. According to JD Power’s power information network, the rapid rise in average vehicle transaction prices this year to over US $ 44,000 will help eliminate the sticker shock when buying a BEV. This is especially true as many BEVs are still eligible for US $ 7,500 national plug-in electric vehicle credits and some states offer additional incentives.

When announcing the new rules, Secretary of Transportation Pete Butigeg said the updated standards would help isolate US consumers from the types of future gasoline price shocks currently being experienced. With these changes finalized by 2026, the EPA and NHTSA will begin developing regulatory goals for the 2027 model and beyond.I expect improvements in fuel efficiency and CO year by year.2 The reduction is set to 5-10% and there are no specific prerequisites for ZEV sales share or absolute volume.

All of these regulatory measures are part of President Biden’s overall picture aimed at reducing the climate impact of the US transport sector. These policies will work in tandem with the Infrastructure Investment and Employment Act (Bipartisan Infrastructure Act) passed last November, spending US $ 7.5 billion to expand the US electric vehicle charging infrastructure. In addition, we have invested more than US $ 65 billion to renew the country’s power grid, increase renewable energy use, and reduce costs. These investments work in tandem with other investments and regulations to reduce US greenhouse gas emissions by more than 50% from 2005 levels to 2030.

https://lmc-auto.com/news-and-insights/us-fuel-economy-rules-tougher-standards-coming/ US Fuel Economy Regulations: Tighter Standards Coming

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