Obama Announces New Fuel Standards for Auto Industry

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A series of new regulations to be announced by President Obama are going to set strict standards for fuel economy to be implemented by 2016. The new rule would ensure that passenger cars being sold in the U.S. must have a fuel economy of at least 39 mpg (currently 27.5) and light trucks would have to drive at 30 mpg (around 23 currently). New Fuel Standards

A series of new regulations to be announced by President Obama are going to set strict standards for fuel economy to be implemented by 2016. The new rule would ensure that passenger cars being sold in the U.S. must have a fuel economy of at least 39 mpg (currently 27.5) and light trucks would have to drive at 30 mpg (around 23 currently). The tighter rules would save 1.8 billion barrels of oil and 900 million metric tons of greenhouse emissions over the lifetime of the vehicles. It would almost guarantee the introduction of hybrid technology in most vehicles, but this would unfortunately raise the average price of a vehicle by $1,300. But will the fuel savings and tax incentive be enough to make up for it?