What the New CAFE Standards Mean for Auto Buyers

White House Infographic, fuel economy standards

There has been a lot of news this week regarding the Environmental Protection Agency and National Highway Transportation Safety Administration issuing new Corporate Average Fuel Economy (CAFE) standards. The reports seem to suggest the government has gone lax on the issue of fuel economy because most Americans don’t seem to care about it.

One analyst, however, suggests the opposite may be true. Stephanie Brinley, a senior analyst at IHS Automotive, read the entire 1217-page midterm report that discussed the standards (something probably 99 percent of journalists didn’t do, including me).

She wrote in Forbes, “The (CAFE) standard and NHTSA projected figures for the 2025 model year targets, however, have now been revealed as a projection rather than a legal requirement. The report is supportive of the progress and direction of the existing standards. The agencies believe automakers can meet the challenge, and that consumers want it.”

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The Early Death of the 3-Wheeled Car?

Elio_Motors

Starting a car company is probably one of the most difficult of all business ventures. Even the best ideas can fail due to a lack of funds or stifling government regulatory requirements.

And yet, people still try.

The people who start car companies do so because they believe they can change, or improve upon, the current state of automobile design, functionality, and performance. Starting a car company can cost hundreds of millions of dollars, though, and most who try eventually fall short of their goals because they simply run out of money.

One company, Elio Motors, wants to introduce an 84-mpg 2-seater that costs just $6,800 and is powered by a 3-cylinder gas engine. Sounds great, right?

Consider this: The Elio has only three wheels, meaning the company is trying to classify the car as a motorcycle to avoid the stricter safety and efficiency regulations that govern cars.

The government, though, has other plans, which could send Elio into the history books.

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