Entries in Car Industry (3)


White House Reveals Mandate to Double Fuel Efficiency

Comstock Images/Thinkstock(WASHINGTON) -- The White House Wednesday formally unveiled a proposed government mandate that automakers double the fuel efficiency of their cars and small trucks by 2025.

If the regulation takes effect, vehicles model year 2017 to 2025 will be required to have a combined city-highway fuel economy of 54.5 miles per gallon. The current combined standard is 27.3 miles per gallon.

“Just think what this means,” Transportation Secretary Ray LaHood told reporters on a conference call. “It means American families will have to fill up their car every two weeks instead of every week.”

“These standards will also spur growth in clean energy industries,” he added, noting the projected reduction in fossil fuel consumption.

President Obama first announced the tighter fuel efficiency standards for cars and small trucks in July, when he was joined by leaders of 13 major auto companies and labor union leaders.  The 1,600-page rule is now open for public and industry input over the next 60 days before being finalized.

The administration says the new standards will save consumers an average of $4,400, after factoring in the potentially higher price tags manufacturers may place on the more fuel-efficient vehicles.

The Department of Transportation and the Environmental Protection Agency, which jointly drafted the new rule, estimate production changes could cost automakers $157 billion, some of which may be passed on to consumers.

Altogether, DOT and EPA estimate the regulations will save drivers more than $1.7 trillion in fuel costs, trim American oil consumption by 12 billion barrels and reduce greenhouse gas emissions by 6 billion metric tons by 2025.

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Auto Industry Revving to Life

Comstock/Thinkstock(NEW YORK) -- From Volkswagen in Tennessee, Honda in Indiana, to GM in Detroit, new car factories are employing thousands of workers.

Two years after the end of the recession, the auto industry is seeing new life, hiring faster than the rest of the economy.

As a result of greater demand, the auto industry employment has increased by 12 percent since June 2010 and continues to grow. General Motors is hiring 2,500 employees in Detroit and Honda is looking for 1,000 in Indiana.

Analysts say the boom is significant as it indicates a rise in consumer confidence.

Copyright 2011 ABC News Radio


Toyota Reports Drop in December Sales

Photo Courtesy - Getty Images(TORRANCE, Calif.) – Toyota Motor Company has reported a drop in December 2010 sales compared to December 2009, although yearly figures remained constant.

Toyota reported the sale of 177,488 units in December, a daily selling rate drop of two percent from the same period in 2009. Sales in the Toyota division were down 2.4 percent in December, while sales in the Lexus division remained consistent with December 2009 figures. 

Despite stagnant figures, Toyota celebrated several automotive achievements in 2010.

“Thanks to our customers’ enduring confidence in the quality and reliability of our vehicles, Toyota remained the best-selling retail brand for the third consecutive year, Camry was again the best-selling car in America for the ninth straight year and Lexus retained its place as the best-selling luxury brand for the eleventh year in a row,” said Don Esmond, senior vice president of automotive operations for Toyota. “We are truly grateful for the strong loyalty our customers showed the Toyota brand in 2010, and we look forward to a successful year in 2011.”

Overall in 2010, the company reported annual sales of 1,763,595 vehicles, which remained relatively unchanged from 2009.
Copyright 2011 ABC News Radio

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