Fuel economy target of 54.5 mpg set by Obama image

American President Barrack Obama has proposed doubling the corporate average fuel economy standards to 54.5 mpg by 2025.

Being flanked by the import-brand auto makers and chiefs of the United States, President Obama’s announcement will affect mileage standards for light trucks, which will increase by 3.5 percent a year from 2017 – 2021.

Obama’s proposal is representing one of the biggest hikes in fuel-efficiency goals since 1970s, when the Government created fuel-economy standards in order to reduce its dependence on foreign oil.

“This agreement on fuel standards represents the single most important step we have taken as a nation to reduce our dependence on foreign oil. By 2025 the average fuel economy of vehicles will almost double to 55 mpg. This is an incredible commitment that they (automakers) have made. They wouldn’t be doing it if they didn’t think it was good for business and good for America”, said President Obama.

The tougher fuel economy has been vigorously opposed by automakers in the past who said that people would not pay more the technology required to meet higher standards.

Alan Mulally from Ford, Dan Akerson from GM, Sergio Marchionne from Chrysler and UAW President Bob King were at the event. They were joined by leaders from BMW, Toyota, Nissan, Mitsubishi, Mazda, Kia, Land Rover, Hyundai and Honda.