Obama, Automakers Strike Fuel Economy Deal

Friday, 29 July 2011 | by Pat's Picks

Shopping for a car with good gas mileage is about to get much easier says the Detroit Free-Press. Thanks to a deal struck between the Obama administration and the country’s major automakers, new vehicles will be required to average 54 miles per gallon by 2025.  That’s about double what’s required now.  Starting in 2017, passenger cars will be required to increase their mileage per gallon by five percent each year. Rules for trucks will be a little more lenient, requiring fuel efficiency to increase by 3.5 percent from 2017 to 2021, when five percent yearly increases will be mandated.

The New York Times says the rule change is an about face for auto executives, who once camped out in Washington to protest even the most nominal changes to US fuel economy standards. The deal is to be formally announced today.