The tougher U.S. fuel economy (CAFE) standards have forced some radical rethinking by two of the world’s largest auto companies.
They really have no other choice, as long as the government commits to the flawed idea of CAFE, with all its loopholes, contradictions and costs of enforcement.
The 54.5-mpg requirement for passenger cars by 2025 (really around 40 mpg per EPA window sticker) has forced Chrysler to start making and selling hybrids and diesels. In 2013, the Chrysler 300 (above) will have a hybrid version, and the Jeep Grand Cherokee will offer diesel. The Fiat 500 EV will be coming next year.
Last year, Chrysler trailed all 14 major carmakers with a 19.2-mpg average. Regarding CAFE, CEO Sergio Marchionne has said, “I have no other way of getting to 2025 numbers than by going to hybrids.” He is also hopeful that CNG infrastructure will take hold.