Fuel Efficiency Drives the Automotive Market

Back in the 1960's the automotive market saw an immense increase in power. Vehicles were coming to market with two to three times as much horsepower as previous models. There was an explosion of new engines choices that came out including some monstrous V-8 engines that boasted 400 horsepower or more. Automakers all joined in by having what is now referred to as a horsepower war. More power was the name of the game and each new model attempted to up the ante. This explosion in horsepower continued right up until emissions equipment was installed on vehicles, vehicles had smog standards to meet, and gas prices shot upwards. Then automakers had to rethink their strategy.

In the early 70s automakers had shifted to making more efficient vehicles. Horsepower numbers dropped off dramatically and mpg claims increased. This pleased buyers as gasoline prices were high and few wanted vehicles that were not efficient. The trend towards fuel efficient vehicles lasted into the early 90s. At this time, gas prices were relatively low and automakers had found ways to increase horsepower without negatively affecting fuel efficiency. Once again the horsepower wars were on and automakers tried to out-gun the competition. This would last for nearly a decade before automakers were met once again with rising fuel prices and buyers demanding efficient vehicles.

This takes us right on to the present. Today automakers are once again faced with the daunting task of building extremely fuel efficient vehicles and they have responded well. Corporate average fuel economy standards have forced automakers to design increasingly efficient vehicles. new standards set in place have forced automakers to steadily increase fuel economy of their vehicle over the next 15 to 20 years to levels never before seen. Automakers will have to meet stringent emission requirements and CAFE averages will be up in the 30 mpg range. It may be a challenge for automakers, but efficient vehicles are also what buyers want.

Sales of smaller, fuel efficient vehicles have taken off in recent years. These vehicles became hot sellers during the gas price spike 2 years ago which saw the national average gasoline price above $4 per gallon. Though gas prices have since fallen off, buyers are still showing strong interest in fuel efficient vehicles. Sales of large trucks and SUVs, known for the poor fuel economy, have fallen dramatically. Automakers have withdrawn many inefficient models due to lack of buyer interest and have instead focused their efforts on the fuel efficient vehicles of tomorrow. Many automakers have also released hybrid vehicles with excellent fuel economy, and some have plans for fully electric vehicle within the near future.

With a focus on fuel efficiency, the automotive industry is changing once again. They are rethinking ideas, redesigning vehicles with efficiency as the primary goal, and coming up with new technology to improve upon or replace existing technology. This explosion in the automotive industry is certain to last as the government standards will require automakers to achieve lofty goals. Extracting every bit of energy from fuel and designing with efficiency in mind will be key to future automotive products.