Auto Industry on Track to Meet EPA Emissions Standard

Auto Industry on Track to Meet EPA Emissions Standard

Every automaker that sells cars in the US was handed a challenge last year from the President, tasked to cut the average fuel economy of their entire fleet to 54.5 mpg by 2025. 

The Environmental Protection Agency (EPA) has released is report on how the industry is doing, and only one automaker, Jaguar Land Rover, is lacking enough EPA-issued credits to meet the agency’s emissions standards through the 2012 model year. These emissions standards are tied into the 2025 CAFE standard, and in the short term, require that each automaker’s fleet meet an average of 35.5-mpg by 2016.

“It’s the first year of a 14-year program, so we don’t want to overstate the significance of what the data are revealing,” said Christopher Grundler, the director of the EPA’s Office of Transportation and Air Quality. “But the data show that the automakers are off to a good start. … There are lower emissions at the tailpipe than we expected.”

In total, the industry average for 2012 was 286 grams of carbon dioxide emissions per mile, a full 9 grams per mile better than the EPA projections.

Many companies built enough fuel-efficient vehicles to pass the standard on their own, but some automakers purchased EPA credits from others who had a surplus to be safe. Mercedes-Benz, Chrysler and Ferrari all had to buy credits from other companies to make sure that they complied. On the flip side, Tesla, Nissan and Honda were all more than happy to sell some their credits for an undisclosed amount.

Selling EPA credits has become big business for many automakers. Tesla sells tons of credits because it only produces electric cars, while Honda and Toyota always have a surplus due to their large fleets of small, efficient vehicles.

 [Source: Automotive News]