Behind The Wheel

LATEST FROM OUR BLOGS

» More

- US Stocks Avoid Closing Down Over 1%, Again

TOP HEADLINES

» Markets | Economy | Companies

- Anger in Greece as Parliament Prepares to Vote on Bailout

BEHIND THE WHEEL VIDEO

» More

Buy, Sell or Hold? 10 Feb 2012
Fast Money's Joe Terranova explains whether you should buy, sell or hold Ford and EMC Corp.

Automaker's Drive for Energy Efficiency

10 Feb 2012

Discussing the auto industry's innovation in energy efficiency and discussing whether the consumer is ready for fuel-efficient cars, with H. Wayne Huizenga, Huizenga Holdings; Mike Jackson, AutoNation, and Bob Carter, Toyota North America.

Clint Eastwood on Auto Bailouts 10 Feb 2012
Clint Eastwood explains why he thinks automobile companies should bail themselves out; Insight with Neel Kashkari, Pimco managing director.
Two Ford Chiefs to Retire 09 Feb 2012
Ford chief financial officer Lewis Booth and global product chief Derrick Kuzak will retire, reports CNBC's Phil Lebeau.
Record Auto Exports Help U.S. Economy 08 Feb 2012
Record car exports are another green shoot for the U.S. economy, with CNBC's Phil LeBeau.

RSS FEED

» Help

Subscribe to this RSS feed
Stay up to date with Behind The Wheel.

Obama's Emission Reduction Pledge Paints Future for Autos

Published: Friday, 27 Nov 2009 | 10:26 AM ET

Text Size

By: Phil LeBeau
CNBC Correspondent

President Barack Obama's plan to announce the U.S. will cut its greenhouse emissions 17% by 2020, may finally kill off those who continue to believe new fuel efficiency and tailpipe emission standards for autos will never reached stated goals.

picturegarden | Getty Images
I've been amused, and frankly a little confused whenever I've heard people say, "I know the automakers agreed to tighter standards, but that really won't happen." Here's a little message for those people—the tighter standards are coming and the industry won't be turning back.

Remember, just last spring President Obama was joined in the White House Rose Garden by the CEOs and top executives from leading automakers to announce a new fuel efficiency proposal. The target: 35.5 MPG by 2016. It's an ambitious goal, and one that targets fuel efficiency 30% better than where the industry is right now. Given the long history of auto companies fighting tighter mileage requirements, it's easy to see why there are still some skeptics who doubt the U.S. will ever get close to the new target.

What those critics are overlooking is the fact the Big 3 mindset has changed.

RELATED LINKS

The spike in oil prices, the accelerating development of electric vehicles, and the changed attitude in management at GM, Ford, and Chrysler makes it clear Detroit will not return to the days when horsepower and size dictated product platforms. Those days are over. The new world order in the auto business is dictated by the belief cheap gas is not coming back. Look at any business plan from one of the Big 3 and you'll find they are forecasting gas to be in the $3.50-$4.50 range three or four years down the road, and those estimates may be conservative.

With that in mind, the auto industry is not only on board with President Obama’s fuel efficiency goals, it’s moving fast toward electric cars. Sure, the Chevy Volt and Nissan Leaf are getting the most attention, but other automakers are also targeting electric cars that will start rolling out in the next couple of years. EVs are attractive for a number of reasons, including the fact that they have zero, or very, very limited tailpipe emissions.

A greener auto industry is coming, whether you want it or not.