The Obama administration is considering a new fuel economy standard that would require cars and light trucks to achieve an average of 56.2 miles per gallon by 2025, an ambitious target that would reduce greenhouse gas emissions but drive up the cost of automobiles.

While still a starting point in negotiations, the new target — which was proposed during separate meetings between U.S. officials and General Motors, Ford, and Chrysler — gives an early indication of administration goals as it begins to set fuel economy standards for 2017-2025.

Last year, the Transportation Department and the U.S. Environmental Protection Agency (EPA) said they would look at a standard between 47 and 62 mpg; today’s fuel economy standard is 25 mpg and will change to 35.5 in 2016.

According to a government analysis, achieving the upper end of the 2025 target would require that half of the nation’s new vehicles be gas-electric hybrids and would add $2,100 to $2,600 to the price of a car.

Last week, a group of moderate Republicans — including four former EPA administrators — urged the administration to impose tougher emissions standards for cars and light trucks.

Article appearing courtesy Yale Environment 360.

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Converting hybrid vehicles — particularly the Prius and Ford Escape — into plug-in hybrids has become a profitable niche industry for a few specialty companies. But the net impact of this new mini-industry has been much greater by influencing consumer and industry opinions.

Promoting the technical feasibility of PHEVs has been a significant factor in the auto manufacturers’ decision to develop the dozens of plug-in and all-electric vehicles now scheduled for delivery in the next five years.

But the earliest and strongest voice promoting PHEVs isn’t happy with that limited success. Felix Kramer, the founder of CalCars.org, says that getting to a million electrified vehicles by 2015 won’t do nearly enough to address climate change and energy independence, and now he’s setting his sights on electrifying internal combustion engine vehicles. He’s clearly on to something.

CalCar’s new “Big Fix” initiative wants to electrify some of the biggest emitters and gas-wasters — pickup trucks, SUVs and vans (PSVs). When used in delivery routes that are often well under 40 miles per day, they spend much of their time starting, stopping, and idling, and get among the worst MPG ratings around. Converting one of these vehicles to a PHEV or EV will reduce fuel consumption and emissions to a much greater degree than trading in a Sebring for a Prius.

SPVs, most notably the Ford F-150, have been among the top sellers for more than a decade, creating an inventory of millions of vehicles that could be converted. They also have much more space for battery packs, which makes for a simpler conversion than a compact car. Former Intel CEO Andy Grove and electric vehicle guru Andy Frank are fully on board, lending their considerable credibility to the idea.

The Japanese postal service has already begun converting its fleet of vehicles to EVs, and the U.S. Postal Service wants to do the same with more than 140,000 of its delivery vehicles. The cash-starved agency could save millions per year if the federal government decides to provide assistance, which would be more sustainable than a bailout.

The biggest impediments are the cost and potential resistance from the auto industry. The battery cost can be upwards of $20,000, making for a slow payback period if gasoline stays around $3 a gallon. The economics will improve over time, especially if conversion kits are produced in volume and battery manufacturing ramps up as the technology evolves.

But the harder sell will be convincing the auto industry that keeping vehicles on the road instead of buying new vehicles is a good thing, and that they should be a part of that business. Upgrading existing SPVs could be a multi-billion dollar business, extending the life of vehicles and preserving the energy cost sunk into building them. While Ford, GM and Chrylsler are best-suited to engineer conversions, this mass rethinking of the company would be an even bigger shift than the current change to becoming manufacturers of PHEVs and EVs.

Convincing fleet operators to convert will likely be easier than the consumers, legislators and car companies needed to make it happen. It’s not impossible, but it will take an extensive and well-orchestrated effort.

Appearing courtesy of Matter Network.

[photo credit: Flickr]

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In recent years a greater emphasis on MPG during car shopping has emerged. Between fluctuating gasoline prices, a broader selection of hybrid vehicles, and the promise of plug-ins and battery electric vehicles, and mandated increases in CAFE standards, fuel economy is becoming an important vehicle characteristic for many consumers.

Makers of ICEs are looking to accentuate the efficiency of many of their “traditional” models to meet federal requirements and better compete with hybrid vehicles. This includes the addition of a turbocharger, which enables manufacturers to use smaller engines while increasing fuel economy by up to 20 percent. Turbochargers reduce emissions as they burn exhaust gas as fuel, and also provide additional power for acceleration.

Honeywell, which makes turbocharger equipment, put out a study claiming that 80 percent of consumers who understood a turbocharger’s impact on fuel economy would be interested in buying a turbocharged vehicle.

Honeywell’s press release adds “According to the Department of Transportation, nine out of the ten most popular vehicles purchased in the recent ‘Cash for Clunkers’ program were equipped with smaller and more fuel-efficient versions of conventional technology engines.”

This overall trend towards the importance of fuel economy when designing vehicles is significant not only for its immediate impact on emissions, but also because it forces everyone — both hybrid and conventional automakers — to continue to up the ante. Hopefully the 35.5 mpg requirement for vehicle fleets by 2016 will be a floor upon which automakers will seek to distinguish themselves.

“Fuel economy as a feature” has a growing audience that auto manufacturers (such as with the Ford Focus) are tapping into. This affinity for higher MPG ratings — and therefore the desire to buy hybrids — is similar to the desire for other vehicle features, such as the imposing size of the Hummer, the power to do 160 mph, or the roar of the Harley. It does not have to be grounded in economics or reality, it just has to be something people want.

Over the years much analysis has been written about how hybrids don’t make economic sense because the added cost may not be offset by fuel savings. Just like turbochargers, the economics don’t have to add up to a fast payback, and that will carry over to plug-in hybrids as well. For some middle aged couple with kids off to college, the hybrid plate is just as important as the Porsche, Jaguar or Maserati name is for another type of consumer.

For those who believe in the importance of reducing emissions, oil imports and trips to the gas station, diesel vehicles should have equal mindshare even though they have been eschewed by American buyers. As an example of luxury meets diesel turbocharging, there’s the new BlueEFFICIENCY Diesel SUVs from Mercedes. Europe has always been way ahead of the U.S. in embracing diesels, but that may slowly be changing.

Appearing courtesy of Matter Network.

[photo credit: Flickr]

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