Obama, Automakers Agree to Increase 2025 Fuel Economy to 54.5 MPG

President Barack Obama announced Friday an agreement with 13 major automakers, which account for over 90 percent of all vehicles sold in the U.S., to begin the next phase of the Obama administration's national vehicle program. Ultimately the agreement will increase the current fuel economy for cars and light-duty trucks to achieve more efficient vehicles.

The goal of the agreement is to increase fuel economy to 54.5 miles per gallon by model year 2025. The major automakers include Ford, GM, Chrysler, BMW, Honda, Hyundai, Jaguar/Land Rover, Kia, Mazda, Mitsubishi, Nissan, Toyota and Volvo.

The Wall Street Journal reported President Obama made the announcement at the Washington convention center and was joined by top executives of the major car companies. The goal of 54.5 miles per gallon is roughly double what the current level is. The purpose of raising the fuel economy is to encourage automakers to manufacture more hybrids and electric vehicles.

President Obama commented on the importance of making vehicles more efficient and using less gasoline. Obama said, "This agreement on fuel standards represents the single most important step we've ever taken as a nation to reduce our dependence on foreign oil. Most of the companies here today were part of an agreement we reached two years ago to raise the fuel efficiency of their cars over the next five years. We've set an aggressive target and the companies are stepping up to the plate. By 2025, the average fuel economy of their vehicles will nearly double to almost 55 miles per gallon."

The Environmental Protection Agency has also continued to work with automakers, environmental organizations, and state governments to make the fuel economy goals achievable.

EPA Administrator Lisa P. Jackson said, "This is another important step toward saving money for drivers, breaking our dependence on imported oil and cleaning up the air we breathe. American consumers are calling for cleaner cars that won't pollute their air or break their budgets at the gas pump, and our innovative American automakers are responding with plans for some of the most fuel efficient vehicles in our history."

The Obama administration has estimated that the new fuel economy standards will save families $1.7 trillion in fuel costs and $8,000 per vehicle, which including reducing oil consumption by 2.2 million barrels of oil per day by 2025. Similarly, the new fuel economy will help cut carbon dioxide production, which is a major greenhouse gas and climate change culprit, by 6 billion metric tons for the entire span of the program.

Rachel Bogart provides an in-depth look at current environmental issues and local Chicago news stories. As a college student from the Chicago suburbs pursuing two science degrees, she applies her knowledge and passion to both topics to garner further public awareness.