Calstart: Passenger car fuel efficiency standard will be 54.5 MPG by 2025

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Updated Jul 28, 2011

An agreement on passenger car fuel efficiency standards will result in increased innovation, investment and manufacturing jobs in the United States, according to Calstart, a national clean transportation technology consortium. President Obama is set to announce Friday, July 29, that the administration and five car companies have reached an agreement that will establish a MPG standard of 54.5 for vehicles sold in the United States by 2025, Calstart says.

“This proposed deal on light-duty vehicle efficiency standards will drive innovation and encourage investment in U.S. startups and established automotive suppliers,” says John Bossel, Calstart president and CEO. “This is a landmark announcement that will result in significant growth in U.S. vehicle assembly and component manufacturing jobs over the next decade.”

Bossel says the president and car companies should be applauded for their ability to work together and agree on a long-range target. “This is the type of public-private cooperation that is helping other countries grow their manufacturing sectors,” he says. “U.S. companies offer a wide array of vehicle efficiency technologies, from lightweight materials to new engine designs to batteries, that will allow this standard to be met and give consumers cars that are fun and safe.”

Bossel says the agreement will do more to reduce dependence on oil and keep U.S. energy dollars at home than any other actions taken to date. “However, this new policy will not be enough to get us to the finish line,” he says. “It is now time to put greater focus on both the fuel and demand side of the equation. With this agreement, the automobile industry will be making a strong contribution to the nation’s energy and economic future. We need policies that accelerate the development of domestically produced low-carbon fuels and a greater investment in our nation’s transit system.”