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EPA - Fuels New Standard - Premium? Current administration has been doing everything they can to gut the EPA even though Auto companies have stated just push out the MPG standard till 2030 or so giving us time to delivery the results. Yet with that, the auto industry is trying to get onboard with Europe to a single standard. In Europe, 95 RON is their baseline fuel standard. This is equal to our 91 octane and while we have a 40 to 50 cent premium standard for 91 octane fuel, this only makes up 11% of the gas produced in the US. Making 91 the new base standard would increase gas creation resulting in lower prices for that gas and cleaner running engines along with a 3-4% increase in fuel economy for new Auto's. The story does say that you would not see a drop right away overnight but over a couple of years in the price of premium. This brings up some interesting questions: What about the cost hit to the lower income parts of society? Could they handle seeing a hit to buy gas as automakers stop producing auto's that run on regular or mid grade? Could they just drop Mid grade and like Costco, offer only regular or premium at the same price to help transition people to Premium autos everywhere? What else could be done to help with a change to a superior fuel? The Drive Story -
FCA CEO Sergio Marchionne is known to speak his mind and tell it like it is. During the Automotive News World Congress, Marchionne questioned the U.S. Government's mandate of 54.5 MPG by 2025. "There is not a single carmaker that cannot make the 54 number. The question is, at what a price?" said Marchionne. A possible reason for the CEO of FCA to bring this up is gas prices around the nation are hovering around $2.00. Also, sales of hybrids and electric vehicles have been declining, partly due to gas prices. Now many executives say that low gas prices will pass and that they will continue in investing in newer technologies. Now Marchionne does agree automakers can meet that deadline, but questions the timeframe of when it will be implemented. "The question is whether 2025 is a realistic date for which to achieve it," Marchionne said. "Fifty-four will not change. The date of implementation might." Marchionne also went on to rail the Government's plans for subsidizing electrification technology. "Let the automotive industry get there. We'll find a way to get there in the most cost-efficient way. Don't tell me that I need to have electrification as the answer. It's improper." Source: The Detroit News, Detroit Free Press View full article -
Marchionne Comments On U.S. Fuel Economy Standards
William Maley posted an article in Automotive Industry
FCA CEO Sergio Marchionne is known to speak his mind and tell it like it is. During the Automotive News World Congress, Marchionne questioned the U.S. Government's mandate of 54.5 MPG by 2025. "There is not a single carmaker that cannot make the 54 number. The question is, at what a price?" said Marchionne. A possible reason for the CEO of FCA to bring this up is gas prices around the nation are hovering around $2.00. Also, sales of hybrids and electric vehicles have been declining, partly due to gas prices. Now many executives say that low gas prices will pass and that they will continue in investing in newer technologies. Now Marchionne does agree automakers can meet that deadline, but questions the timeframe of when it will be implemented. "The question is whether 2025 is a realistic date for which to achieve it," Marchionne said. "Fifty-four will not change. The date of implementation might." Marchionne also went on to rail the Government's plans for subsidizing electrification technology. "Let the automotive industry get there. We'll find a way to get there in the most cost-efficient way. Don't tell me that I need to have electrification as the answer. It's improper." Source: The Detroit News, Detroit Free Press
