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Automotive Industries in China Grow Up

Cars are certainly changing China. “J. D. Power & Associates calculates that four-fifths of all new cars sold in China are bought by people who have never bought a car before — not even a used car,” according to the New York Times. “China’s explosive growth in first-time buyers is the driving force behind the country’s record car sales, up more than eightfold since 2000. It is the reason China just passed Japan to become the world’s second-largest car market, behind the United States.” What are they buying? “The beneficiaries have been the joint ventures of multinationals that sell cars here that are designed overseas, like the Buick Excelle, Volkswagen Jetta and Toyota Camry.” The phenomenon is something of a surprise to industry analysts, most of whom had thought that low-cost domestic Chinese automakers would cut their teeth on first-time Chinese buyers, eventually developing cars that could compete on the international market.

Instead, some of the most sought-after cars in China are the same ones that have represented prosperity in the U.S. in recent years. The AP reports that “sales of luxury cars and SUVs expected to surge by 40-45 percent” in China this year alone. Mercedes-Benz says “China is the second-biggest market for its S-class sedans, behind only the United States, and accounts for one-third of global Mercedes sales.” In the first quarter of this year, “Sales of R-class minivans jumped 110 percent while those of M-, G- and GL-class SUVs doubled.” Why are the Chinese snapping up low-mpg vehicles while global oil prices are reaching record levels? “Beijing has tried to shield farmers and the urban poor from high oil prices by freezing pump prices for gasoline and diesel, keeping them among the world’s lowest. That takes the sting out of filling up a gas guzzler,” according to the AP.

General Motors is counting on China to help it recover from economic stress in the U.S. market. According to the Flint Journal’s Rick Haglund, “GM sold 322,115 Buicks in China last year, compared with just 185,791 in the United States, and, “unlikely as it may seem, engineers and designers in Detroit and Shanghai are working together to develop Buicks that will appeal to both Chinese and American consumers.” The new Buick Invicta, which will sell in the U.S. as the next Buick Lacrosse, premiered at Auto China 2008, popularly known as the Beijing Auto Show, this week to rave reviews.

Chinese automakers, in contrast, are looking to the U.S. market as their future.

Car and Driver today profiles “Chinese cars that might have what it takes to make it in the U.S.” None of the cars are scheduled for sale here yet, but American automotive writers are starting to consider whether they should be, and that’s news.

The New Zealand Herald notes, however, that “like the Japanese and Korean car companies that went before them, Chinese firms are finding they have to win customers with cut-price deals before they can establish their names.” Chinese automakers “sold 612,700 cars abroad last year, up nearly 80 per cent” from the previous year, but those sales were “mostly in the developing world.”

Tips to Snag a Bargain on 4 WD

MSNBC - With the rising price of gasoline pushing up driving costs, some helpful tips on how to save a few bucks on your next car purchase would certainly come in handy right now.

The overall cost of owning and running a passenger vehicle in the United States now averages 54.1 cents per mile, up 1.9 cents per mile from 2007, according to an annual study from AAA released this month.

AAA estimates it will cost $8,121 to own and operate a new passenger car driven 15,000 miles this year, compared with $7,823 last year. While some driving costs — maintenance, full-coverage insurance and depreciation — are slightly lower this year, other costs have risen, especially fuel.

“Higher gasoline prices have more than offset these savings and pushed the overall cost of vehicle ownership and operation higher this year,” said John Nielsen, director of AAA’s Approved Auto Repair network. High gas prices are also changing consumers’ car-buying habits, according to Philip Reed, senior consumer advice editor at automotive research Web site Edmunds.com.

“The economy and gas prices have changed buying trends somewhat, and what’s happening is people are buying smaller, more fuel-efficient cars, and they’re also buying inexpensive and used cars,” he said.

But if you’re in the market for a new car and hoping for a bargain, the most popular vehicle categories are often the worst place to look, he said.

“Whenever you have a lot of activity on one car category it doesn’t favor the buyer,” said Reed, adding that you’re more likely to find a deal from a domestic car manufacturer.

Over the last few years Nissan, Honda and Toyota have positioned themselves well in category of small, fuel-efficient cars, introducing the Versa, Fit and Yaris, respectively, to the U.S. market. General Motors has small cars like the Chevy Cobalt, and Ford’s Focus has seen an increase in sales activity because the automaker has promoted the fuel-saving aspect of the car, said Reed.

“You won’t get much below sticker price for a Fit, but you’re more likely to see incentives or discount prices for the Ford Focus,” he said. “In general, Ford is eager to sell as many units as they can, and that’s the same for all the domestic manufacturers right now because they are in some difficulties compared with Asian automakers.”

Low-interest financing deals are also a way to save money, said Reed, although car consumers tend not to get excited about them because they don’t make the car buyer “feel” as though they’re getting thousands of dollars off a car’s sticker price. In fact, he said, low-interest loans may save a customer more money than a rebate.

Another tactic for finding a cheap — and reliable — vehicle is to look for models that recently have been redesigned and purchase a version from the previous model year, said David Champion, director of automobile testing at Consumer Reports.

Many car models are updated every four or five years, he noted, and the most reliable model is usually the one that comes out just before the redesign.

“For the Honda Pilot SUV, for example, the most reliable car model year right now is probably the 2008 model because the new 2009 version is about to come out,” he said. “Honda is probably doing a really good deal on last year’s model because they are trying to get them all sold.”

Another good way to snag a deal is to buy a car at the end of the month, said Champion.

“After the 25th of the month dealers are likely to be trying to make their month-end bonus, and maybe the bonus is an extra $1,000 if the dealer sells 10 vehicles,” he said. “The dealer might have sold nine, and so if you’re customer number 10 they might sell a car to you at cost so they can make the $1,000 bonus, which is worth more to them anyway.”

It’s also worth shopping for a car at the end of the year to take advantage of year-end deals offered by manufacturers, Champion said. There might be special incentives for models that are in a battle to be the sales leader in their category, he said.

When negotiating with a car dealer it also helps if you know how much the dealer has paid for a car so you can negotiate from the base price rather than from the Manufacturer’s Suggested Retail Price, or “sticker price.” The price paid by the dealer can be found online at Web sites such as ConsumerReports.org.

“The big thing about buying a new car is homework, homework, homework,” Champion said. “Don’t forget that everything is negotiable.”

It’s also important to be practical, Champion added. If you have a boat and use it once or twice a year, don’t buy a vehicle just to tow it. Instead, rent a pickup when you need to tow, put the wear and tear on that vehicle and settle for a sedan the rest of the year, he said.

“Buy the best appliance for the cheapest amount of money,” said Champion. “That’s especially important now because of the economic climate; the price of gas is high and the amount of disposable income you have is going to be reduced even further if gas costs go higher.”

A used car is a good investment, Champion said. Many cars can go for up to 200,000 miles without any repairs, he said, and so if you find a good used car with 40,000 miles on the clock it could be trouble-free for another 160,000 miles. That could represent a significant saving, he said.

“A good quality used car is probably one of the best deals out there,” he said.

In the current economic climate, you might also consider holding on to the car you already have for a little longer, counsels Edmunds.com’s Reed.

“If you trade in your SUV for a Prius because you want to save on gas prices it’s a mistake, because when you change vehicles there are related fees such as sales tax and DMV fees, and they are costs people don’t tend to think about,” he said.

He notes that Americans spend about $1,200 a year to gas up their cars, on average. So it might not make financial sense to spend $1,800 or more in taxes and fees to dump a gas-guzzler and buy a new Prius.

Report: Auto Show Beijing 2008

JAC C-concept

Jianghuai Auto (JAC) is one of China’s smaller car companies, better known for their commercial vehicles and new to the car market, although they are growing fast: they produced 40,000 cars last year and plan to produce 10 new models by 2010. JAC are unusual in that they have a European design studio, based in Turin, headed by a native Chinese - Tik Lou. This is the studio that has designed the new C -concept shown here this week.

Overall, the exterior represents a very competent amalgam of current European D-segment designs, from the Passat to the Citroën C5. The result is elegant, with a notably thin C-pillar that flows onto the flat rear deck. Interestingly, the profile is slightly more boxy than that being pursued by most other Chinese competitors in this segment right now and it will be fascinating to gauge the reaction from Chinese show visitors.

The wide clamshell hood gives a typically Italian feeling to the design, even if the flatness and length of it remind a little of the old Saab 900. The front headlamps and grille form a wide ‘monomask’ graphic, emphasized by the grille, with its minimal horizontal slots and plain silver finish, embellished with the elliptical JAC emblem and pentastar logo. The headlamps have a familiar ‘drop-eye’ motif like a VW and the rear end and taillamps echo the graphic of the front end exactly, even down to the lamp cans layout and lower bumper area - a common Chinese theme right now that we detected here this week. One detail is that the use of brightwork feels unrefined on this model, as the chrome strips used for the DLO surrounds, license plate garnish, lamp frames and lower door protectors are all flat sections and thus, do not catch the light sufficiently to add sparkle in those areas.

VW Bora

VW is launching two new C-segment models here in Beijing this week, both near identical in terms of size and price. There are two reasons for this seemingly bizarre outcome: as the market leader with over 18 percent of the entire market, VW can afford to offer two distinct models. But, more importantly, they have two separate joint ventures here with two different companies: Shanghai Volkswagen which produces the old VW Passat, Santana and Audi models and FAW-Volkswagen who build the new Passat, Golf and Jetta.

In the future, both companies will offer a compact Golf-based sedan, a car that’s at the core of the Chinese car market: Shanghai Volkswagen will make the new Lavida, which effectively gives them a replacement for  the ancient Santana model that dates back to the 1978 Passat. FAW-Volkswagen venture will build this new Bora, to cover the lower end of the current Santana model line-up. Both are based on the older Golf IV PQ34 platform that is considerably cheaper to produce than the current Golf V platform, with 100mm added to the wheelbase to produce a roomier rear cabin. Both were developed in China and will be sold solely in the Chinese market. Just to confuse matters more however, the current Bora/Jetta available in other world markets will still be offered, as the higher priced (but less roomy) VW Sagitar.

The exterior of this new Bora for China has a much more upright C-pillar than the current European Bora and a slightly shorter trunk than the new Lavida. The front face is similar to the VW Eos, nearer to VW’s German style than the Lavida, whose image is closer to that of a Chinese domestic brand and targeted to trendy metropolitan customers.

The new IP is more functional and European in taste than that of the more luxurious Lavida, although it still sports the obligatory wood insert that Chinese customers demand in their sedans.

Chery A3

This is Chery’s second big launch of the show, also with Italian design input, but here from Pininfarina rather than Torino Design. The A3 is a compact C-segment model available in four-door or five-door bodystyles and the co-ordinated presentation of the cars - all in silver - was very good and gave a sophisticated impression to the booth.

The exterior design picks up a number of current design cues that are typical of current Chinese car design: the DLO kicks up at the rear, similar to the new Roewe 550 or the GAIG 4-Door Coupe concept. The bodyside is sculpted and there is a hidden rear door handle, like the old Alfa 156. The wide clamshell hood has a character line from the A-pillar that drops down into the front mask and the upper grille has an interesting wave section, with a hexagonal mesh. The five-door feels fresher than the four-door, due partly to the taillamp graphic, with its outer ring of red LEDs. But the hi-mount stop lamp at the top of the tailgate is very old-fashioned, as is the wide bumper and bodyside protector with side repeater in the front edge.

Likewise, the interior is orthodox and initial impressions are good: a NAVI screen with controls on either side, a leather steering wheel and side curtain airbags. But dig deeper and the attention to tactile quality and ergonomics is zero. The door linings are all hard plastic, there’s a cheap finish to storage lids and the rotary HVAC controls have a flimsy, gritty feeling to them. Then there’s the coin tray and cupholder in the center stack: both slide out at right angles to the center stack, not horizontally, so are completely unusable.

It’s clear this program development has been over-long or has been postponed by Chery. While the design is competent, it all feels a bit stale and much of the detailing and quality is already outdated, especially when compared to its chief rival, the new Roewe 550.

2008 Porsche Cayenne Turbo Review

But what a hoot the Cayenne Turbo is. Speed limits arrive in a blink, the chassis will cope with anything Detroit’s shattered roads can throw its way, and it truly handles like a sports car. It really is unbelievable: Everything you could ask it to do, it will do without breaking a sweat. Light on its feet? Nah, but just tromp on the throttle, hang on and go–and watch the fuel gauge drop.

At $113,000, this really should be something else–as well it is, at least dynamically. We do question little things such as the hard, seemingly inferior plastics trimming the door; for this kind of coin, we expected a more luxurious interior. And while Porsche clings to its heritage with an ignition switch located left of the steering wheel, it gives up on its tradition that the tachometer should be bigger (and thus more important) than the speedometer on the instrument panel. Considering that it is an automatic, it probably doesn’t matter, but it does send a message that this is no traditional Porsche.

We’d also like a better brake feel, and the ride is harsh, especially on the sport setting. But you have to make some compromises for performance in a Porsche sport/utility vehicle, where the emphasis is properly on Porsche.

Expensive Car on The World

Imagine paying the price of a new Mercedes-Benz C-Class just to get a little privacy in the back seat of your Maybach 62. Most buyers of this $386,500 limo add $29,900 to the base price for a glass partition wall.

That option is the most expensive one we found when researching our list of the top 10 priciest car options.

All of the features on our ranking cost as much as a new car. The least expensive one is a $16,500 carbon-ceramic brake package for the Bentley Continental GT. Go to the “slide show” link below to see the full list in ascending order.

Six- and seven-figure cars are within reach of more people than ever before. To say nothing of mere “high-net-worth” individuals, the number of “ultra-high-net-worth” people worldwide, those who have $30 million or more in assets, excluding their residence and collectibles, has grown 11.3 percent to 94,970 and their combined total assets have risen by 16.8 percent to $13.1 trillion, according to the most recent Capgemini-Merill Lynch World Wealth Report.

As the number of wealthy people grows, some ultra-luxury and exotic car manufacturers have responded by boosting production, which incrementally drives down their exclusivity. Global Insight projects that the number of ultra-luxury vehicles sold in the United States will reach 11,755 in 2008, nearly a tenfold increase since 1990 when 1,762 were sold.

One way the super-rich might regain a measure of exclusivity is by personalizing their rides with expensive options. Aston Martin, Bentley, Ferrari, Lamborghini, Maybach, and Rolls-Royce certainly make it easy enough.

Those automakers collectively offer the priciest options on the planet. Many of the add-ons in our ranking are purely aesthetic.

“In the exotic car market, almost none of the options, other than, say, the carbon-ceramic brakes, are particularly functional. What they want are the distinctive features that make their vehicle even more unique to them,” says Scott Rothermel, general sales manager of Lamborghini Chicago in Westmont, Ill.

Many high-end automakers offer carbon-ceramic brakes designed to better dissipate heat and prolong braking performance during extreme driving, such as on a racetrack. Ferrari’s are the priciest, at $18,500 for the 599 GTB Fiorano (the seventh ranked option) and $16,808 for the F430 (ninth on the list). Bentley’s previously mentioned carbon-ceramic brake system for the Continental GT is $308 less than the F430’s.

Only those who test the outer limits of their cars on a racetrack will fully appreciate carbon-ceramic brakes. But they do add a measure of cachet and exclusivity.

Many well heeled buyers are more likely to spring for non-functional add-ons that dress up their cars. Take the eighth most expensive option on our list: For $17,000, a Rolls-Royce Drophead Coupe owner can add even more visual punch with a brushed stainless steel hood and teak trim that mimic the deck of a yacht.

Or maybe the standard interior colors available for the Maybach 57 and 62 all seem mundane. In that case, order the Emerald Green Interior for $19,900. It’s the fifth priciest option on our list, which doesn’t include the virtually endless customization possibilities that each of the ultra-high-end automakers offers.

Some exclusive extras are functional, designed to increase comfort. Fitting a Bentley Arnage R with a $19,000 Level 2 Entertainment Package adds a cocktail cabinet, wine fridge, and foldaway work tables. That option is sixth on our top 10 list.

The rear television and DVD package available on the Bentley Arnage RL, a stretched version of this full-size sedan, adds two 15-inch flat screens each with their own DVD player for $20,690, or more than the price of a base Honda Civic.

It’s the third most expensive option on our list of 10.

Some exotic cars, such as the $1.7 million Bugatti Veyron the $640,000 Spyker C12 Zagato, only offer what are called “no-cost” options, and thus did not make it onto our top-ten list. “Our base price of $1.7 million is for the complete package. We give buyers the ability to individualize their vehicles at no additional cost,” says John Hill, market manager for Bugatti Automobiles USA.

Bugatti brings customers to its Dorlisheim, France, factory where they can customize everything from exterior paint colors to interior dashboard trim and even add a monogram to their vehicles.

“Even coachbuilders like Fisker offer few cost options, but almost unlimited choices,” says Steve Ferguson, an exotic car analyst at the National Automobile Dealer Association. “The price for these coachbuilt vehicles includes an almost endless array of options for people to choose from.”

Bentley, Ferrari, and others have their own division that can spec out a vehicle to virtually any whim. But they charge for it, unlike Bugatti and Fisker.

Some exotic car buyers are actually willing to pay more for fewer features. Super exotics such as the Ferrari F430 Scuderia or the Mercedes-Benz SLR McLaren 722 Edition offer improved performance by stripping away some of the amenities of the “regular” versions.

“Many buyers of exotic cars are just adding another vehicle to their stable and are therefore willing to pay a premium for a vehicle with fewer luxury options, say one with added performance, which makes the car even more impractical, but therefore even more rare,” Ferguson says.

These buyers prefer vehicles tailored to a singular purpose: “They drive their Maybach or Rolls-Royce when they want a luxury sedan, their Land Rover when they want an SUV. They want a Lamborghini for the track and a Bentley Continental GT when they desire a grand sports tourer,” Ferguson says.

To find the most indulgent options, we studied the order sheets of exotic and ultra-luxury car manufacturers and picked out those that cost the most. Keep in mind that manufacturers don’t list every possible option or amenity and that our list doesn’t take into account the extensive customization each company offers.

The nameplates considered for our ranking sell fewer than 10,000 each year in the United States. Four companies dominate the list: Bentley, Ferrari, Maybach, and Rolls-Royce. Check out the “slide show” link above to see what options command the highest prices.

Source: ForbesAuto

Self Parking System from VW

Volkswagen has developed a new self-parking system. There’s nothing terribly unique in that — Lexus has sold an LS 460 that parks itself for a year now. What’s unique about VW’s design? Simple — you don’t have to be in the car for it to work.

You can get out, press a button on a remote control, and walk away while your VW parks itself.

Watch it for yourself:

WorldCarFans explains, “The system is engaged by the driver using the key remote control while standing outside of the car. The car then proceeds to to reverse park itself into the parking space. Once the car reaches its final resting place, the engine turns off and the doors lock.”

The U.K.’s AutoCar says the system will be “available as an option on various Volkswagen models, including the Routan, Tiguan and Passat,” and will allow parking “not only into parallel spaces but perpendicular ones as well.” Though it is “still in the development process,” VW engineers are said to be “confident” that it will see production. “The technology is all in use today in one form or another. It is now a matter of perfecting the system for everyday use,” a “VW insider” told AutoCar.

Until we get our hands on it ourselves, we can’t promise you that it works well. As the editors of Automobile Magazine showed in this video, the Lexus version hasn’t been entirely easy to use…and that one functions with a driver inside to override the computer’s mistakes.

Jalopnik comments, “With the time saved you could get into the mall a whole 30 seconds sooner than without the system.”

Or, if those German engineers can just get it to take itself out of park and meet you a few blocks away, you can finally justify that batsuit purchase…

Source: rankingsandreviews

Toyota Motor Lead Car Market

MSNBC - Toyota took the global sales lead from General Motors in the first quarter, capitalizing on growth in China and Europe as GM saw its North American sales drag down gains in other markets.

Toyota Motor Corp. said Wednesday it sold 2.41 million vehicles in the January-March period, compared with General Motors Corp.’s 2.25 million, prompting one industry analyst to predict that 2008 would be the year Toyota unseats GM in global sales.

Toyota reported steady demand in Asia and strong demand in Europe, while GM said it had record sales in its regions outside of North America.

GM barely won the global sales race with Toyota last year, but Toyota overtook it as the world’s top automaker as measured by global vehicle production in 2007.

The sales numbers didn’t surprise GM. Mike DiGiovanni, the company’s executive director of global markets and industry analysis, said GM expected to be outsold in the first quarter, pointing out that the same thing happened from January through March last year.

He said the company is more focused on turning around its North American operations and becoming profitable worldwide than it is on beating Toyota.

“We obviously want to win, and we’d like to be No. 1 in sales at the end of the year,” he said. “But really our focus right now is on profitable, sustainable growth across the world.”

GM said it posted record sales in three of its four regions, but a 10 percent drop in North America pulled down the overall numbers. Sales were up 8 percent outside of North America, the Detroit automaker said.

A record 64 percent of GM’s sales in the latest quarter came from outside the United States, with the company reporting nearly 20 percent growth in the Latin America, Africa and Middle East region, 6 percent growth for Asia Pacific operations and 3 percent growth in Europe.

GM sold roughly 2.27 million vehicles worldwide in the first quarter of 2007.

The figures show that it’s likely Toyota will outsell GM worldwide this year, even if the U.S. economy recovers in the second half, said Jesse Toprak, chief industry analyst for the auto information site Edmunds.com.

“GM is probably going to have some recovery in the second half of ’08 in the U.S. market,” Toprak said. “That’s not going to be significant enough to make up the difference, and also Toyota will recover as well if the whole market recovers here.”

Toyota’s U.S. sales weren’t hurt as badly by the economic downturn as GM’s were, dropping only 5.6 percent for the quarter compared with GM’s 10.9 percent decline, according to Autodata Corp.

GM on Wednesday issued a more pessimistic forecast in the U.S. than it had previously, predicting that record high gas prices could drive second-quarter sales below first-quarter levels.

Unique Bonnets Modification Styling

The most dramatic bonnet styling modification has to be the split bonnet. Rather than opening on a hinge at the top or bottom the bonnet will open from the middle to each side.

First off remove the bonnet from the car and see where the supports are (you will need to remove the sound deadening at this stage too). You must aim to keep the bonnet rigidity and may need to weld an additional support to aid strength.

You can either do a straight cut down the middle, an off center cut on a diagonal or you can cut triangles or other shapes along the edge. The simplist and most impressive has to be the off center diagonal cut. Expect to paint the bonnet when refitting it as you will be cutting metal and will need to protect the cut against corrosion.

Plan your cut carefully and mark it out with some heavy duty masking tape. Take an angle grinder or jig saw (an angle grinder will give a nice straight edge but will make it harder to cut shapes) and proceed to make the cut in the bonnet.

You will need to decide which part is the leading edge and weld an overlapping seam on the other half for this to rest on. Next we need to balance the weight using a rear parcel shelf stay / spring mechanism. The idea of the stay is to give a smooth opening action and reduces the amount of spring strength required. Hinges must be fitted to the outside edges of the bonnet and then you should connect them to the car ensuring they open without fouling up and leave a nice even join where the 2 halves meet. The photograph below shows the seam welded along the join.

After adjusting the hinges and fixing the 2 halves in place you are now ready to fit the opening mechanism. Depending on the weight of the bonnet you should install an appropriate set of springs and counter balance pistons.

Next step is to focus attention on the release mechanism. Thankfully most standard release mechanisms are sprung loaded and allow the bonnet to pop free of the catch leaving your sprung loaded split doors to flip up under their own steam.

Electric Cars Market in 2009

MSNBC - Silicon Valley investors annnounced Monday that two venture capital firms with Silicon Valley roots are funding the U.S. operation: RockPort Capital Partners, and Kleiner, Perkins, Caufield & Byers.

Think North America is likely to be based in Southern California and the cars will be assembled locally, the partners said.

They intend to put the first model on the market by the end of 2009.

The car, named Think City, is a two-seater with a top speed of about 65 mph, the company said. It runs on sodium batteries and is 95 percent recyclable.

It’s “a mass-market vehicle,” said Ray Lane of venture capital firm Kleiner, Perkins, Caufield & Byers. “Our desire is to be selling 30- to 40- to 50,000 of these cars in a couple of years.”

“The transportation industry is undergoing its largest transformation since Henry Ford built the Model T,” added Lane, who is also chairman of Think North America. “Today we are witnessing aseminal event: the first highway-capable electric vehicle intended for mass production, representing a big step toward a zero emission transportation industry.”

Think Chief Executive Jan-Olaf Willums said test vehicles will be brought to the United States in coming months. A convertible model is in development.

Ford Motor Co. owned Think for five years, leasing vehicles in the U.S. before selling the company in 2004.

Only a few major automakers, including Nissan Motor Co. and Mitsubishi Motor Co., have announced plans to make all-electric cars.

Source: The Associated Press.

Next Generation Fuel Standard

MSNBC - The next generation of new cars and trucks will need to meet a fleet average of 31.6 miles per gallon by 2015, the Bush administration proposed Tuesday, seeking more fuel-efficient vehicles in the face of high gasoline prices and concerns over global warming.

Transportation Secretary Mary Peters outlined the plan on Earth Day, setting a schedule that was more aggressive than initially expected by the auto industry. It responds to a new energy law that requires new cars and trucks, taken as a collective average, to meet 35 mpg by 2020.

“This proposal is going to help us all breathe a little easier by reducing carbon dioxide emissions from tailpipes, cutting fuel consumption and making driving a little more affordable,” Peters said.

New cars and trucks will have to meet a fleet-wide average of 31.6 mpg by 2015, or about a 4.5 percent annual increase from 2011 to 2015. In 2015, passenger cars will need to achieve 35.7 mpg and trucks will need to reach 28.6 percent.

The rules were designed to push companies to boost fuel efficiency across their entire lineup. Manufacturers will have different requirements for cars and trucks of different sizes based on vehicle sales. Collectively, the fleet of new vehicles will need to meet the rules.

Among individual manufacturers, passenger cars built in 2015 by General Motors will need to average 34.7 mpg, Ford’s cars will need to reach 35.5 mpg and Toyota’s cars will have to achieve 34.6 mpg.

For light trucks, GM will need to reach 27.4 mpg by 2015, while Ford will have to average 28.8 mpg and Toyota will need to hit 28 mpg.

The plan is expected to save nearly 55 billion gallons of oil and reduce carbon dioxide emissions by 521 million metric tons over the life of the new vehicles built between 2011-2015. It will add an average cost of $650 per passenger car and $979 per truck by 2015.

Environmental groups and their allies in Congress, who have criticized the Bush administration’s handling of the requirements, said they were encouraged by the proposal.

“After years of fighting a fuel economy increase, the Bush administration is showing faith in the American auto industry’s ability to reform,” said Rep. Edward Markey, D-Mass., who sought the higher standards.

Automakers opposed increases to the regulations in previous years, but supported a compromise version of the legislation in Congress. The changes would require the industry to implement more than half of the fuel-efficiency requirements by 2015 and push them to build more gas-electric hybrid cars and diesel-powered trucks and SUVs.

“Congress has set an aggressive, single, nationwide standard and automakers are prepared to meet that challenge,” said Dave McCurdy, president of the Alliance of Automobile Manufacturers, which represents General Motors Corp., Toyota Motor Corp., Ford Motor Co. and others.

In keeping with the new law, however, automakers will continue to receive a 1.2 mpg credit for producing flexible fuel vehicles which run on ethanol blends, but the credit will begin phasing out in 2014. Environmental groups have called it a loophole, noting that few vehicles actually use E85 ethanol.

Jim Kliesch, a senior engineer with the Union of Concerned Scientists, gave mixed reviews to the plan, arguing that the first three years would push the industry, but the following two years would only seek modest increases. “The proposal starts off at full speed, but then puts on the brakes,” he said.

Congress sought the tougher standards last year, arguing that an increase in fuel efficiency would help reduce greenhouse gas emissions and the nation’s dependence upon imported oil. The law, the first major changes in three decades, requires the nation’s fleet of new vehicles to increase its efficiency by 10 mpg from its current average of 25 mpg, or a 40 percent increase.

The fleet of new passenger cars is currently required to meet a 27.5 mpg average, while sport utility vehicles, pickup trucks and vans must hit a target of 22.5 mpg. Among the current fleet, passenger cars average about 31.3 mpg while light trucks get about 23.1 mpg.

The Bush administration has opposed attempts by California and other states to implement a strict program to reduce vehicle tailpipe emissions. Peters said the federal plan would reduce fuel consumption “in a way that is consistent nationwide and also doesn’t compromise vehicle safety.”

The plan is expected to be finalized by the end of President Bush’s term in office.

Source: The Associated Press

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