Automakers and Obama Administration Agree to 54.5 MPG Standard

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UPDATED: Mar 13, 2020

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The EPA says consumers will save money with the new fuel economy standards.

The EPA says consumers will save money with the new fuel economy standards. (image by

The Obama administration has announced new federal standards to increase fuel economy and reduce the pollution for new cars and trucks sold in the United States. The program will go into effect with the 2017 model year and continue through 2025. By 2025, automakers must provide a fleet MPG of 54.5 MPG.

According to the administration, consumers that buy these new cars will save approximately $1.7 trillion dollars in fuel costs over the life of these cars, which works out to a savings of $8,200 per family in fuel savings, compared to 2010 automobiles.

The program should also help in reducing our dependence on foreign oil imports. The administration estimates that by 2025, oil consumption will have been reduced by 2.2 million barrels a day, which is more than is imported from any single country, save Canada. As older cars are replaced with newer ones, the reduction should reach 4 million barrels per day.

And while the potential for saving money and reducing our imports of oil are great, the benefits of the new standards don’t stop there. They are expected to reduce pollution from carbon dioxide by over 6 billion metric tons, which was the amount of emissions from the United States in 2010. That amount is what the rainforest in the Amazon absorbs in three years. They’ll also protect public health, since toxic particulates, smog and soot will be reduced as well.

Do you think automakers will be able to deliver these new MPG standards?

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