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PHOTO CAPTION: President Obama slips into Ford Focus EV prototype.

Obama Administration Issues New 54.5 MPG Rules

The administration estimates that Americans will reduce oil consumption by 12 billion barrels of oil because of the higher standards.

Published: 29-Aug-2012

The Obama administration issued new fuel economy rules Tuesday that require auto manufacturers to increase the average efficiency of new cars and trucks to 54.5 mpg by 2025.

The new rules, aimed at reducing fuel consumption and cutting greenhouse gas emissions from vehicles, will increase pressure on automakers to develop more alternative-fuel vehicles, such as electric and plug-in hybrid cars, as well as improve the mileage of their mass-market models by developing better engines and using lighter materials.

Currently, auto companies are working toward achieving a 35.5 mpg average by 2016. The new standards for corporate average fuel economy won support from most automakers last year during negotiations with federal regulators.

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