New aggressive fuel economy standards set on Tuesday by the Obama administration could gradually lead to the extinction of V8 engines, said Sergio Marchionne.
Especially since most carmakers present on the U.S. market have accepted the new 54.5 mpg fleet average, on condition it’s revisited in 2017.
According to U.S. government officials, the new CAFE (Corporate Average Fuel Economy) target will bring unprecedented innovation and could create 30,000 jobs by 2025. But, in order for that to happen, the auto industry must spend up to $136 billion, according to an official from the Department of Transportation. He added however that savings at the pump will offset higher car prices.
According to Fiat and Chrysler CEO Sergio Marchionne, automakers must bring to reality significantly new technologies and must change the way cars are designed. Under the new rules, Chrysler will still be able to build vehicles like minivans and Ram trucks, Marchionne added, but cars like Dodge Chargers and Challengers with big supercharged Hemi V8 engines will become as “rare as white flies.”
Ten out of the 12 automotive manufacturers represented by the Alliance of Automobile Manufacturers support the new standards. Only VW and Mercedes-Benz oppose the new regulations, as they claim diesel models would be disadvantaged. Also, the National Automobile Dealers Association warned that the cost of developing the new technology could force automakers to charge nearly $3,000 more per vehicle by 2025.