MPG Standard to Increase for 2011 Model Year

What does this mean? Well, cars already meet the new standard. In 2007, automakers averaged 31.3 mpg for cars and 23.1 mpg for trucks. Given that truck sales will likely still be down significantly throughout 2009, getting their CAFE average up shouldn’t be too much of a problem.

That’s because the CAFE formula doesn’t rely on EPA mileage alone; it also takes into account how many of each vehicle is sold. With truck and SUV sales down more than 50% since last summer, and new trucks like the Ford F-150 increasing efficiency between 8% and 12%, major automakers should be safe from any penalties. They could also decide to kill off larger SUVs, like the Ford Expedition and Chevy Suburban, by the 2011 model year, or they could build up supply of 2010s to sell throughout calendar year 2010, when 2011s go on sale.

The CAFE law enacted last year requires that automakers reach a 35 mpg fleet average by 2020. This means more changes to come. The Department of Transportation will spend the next year reviewing how it will implement efficiency policy for the 2012-15 model years.

The automakers potentially affected by the new law include Porsche, which paid a slight fine in 2007, and Mercedes-Benz, which paid a heftier one. With its recent introduction of diesels to the U.S. market, though, the German automaker might be able to avoid taking a large hit.

Vehicle Fuel Efficiency Standard Going Up (USA Today)