Corporate Average Fuel Economy

Corporate Average Fuel Economy Standards Lionell C. Henderson Northwood University MBA 644: External Environment Richard DeVos Graduate School of Management Fall 2015 Evening – Cedar Hill, Texas Professor James Latham Acknowledge a Problem Exist In 1973, the United States plummeted into a huge energy emergency, as a result of the Arab oil embargo. From October 1973 to March 1974, the United States oil supply from members of the Arab’s Organization of Petroleum Exporting Countries became

Introduction Corporate Average Fuel Economy (CAFÉ) standards proposed for vehicles produced between 2017 and 2025 were promulgated through the joint efforts of the National Highway Traffic Safety Administration (NHTSA) and the Environmental Protection Agency (EPA) utilizing regulatory powers granted in their charters allowing them to regulate carbon dioxide emissions from vehicles and other greenhouse gas producing sources. (Nichols, 2012) The essence of the proposal was that by 2025 vehicle manufactures

shift to fuel efficient cars. After years of poor sales, the federal government took over GM and Chrysler in March 2009. (Amadeo & Amadeo, 2016) Although gas prices fell, consumers continued to demand high mpg cars and trucks. The most recent issues involve the environment. Global warming has created a shift in global concern for the environment. This started the environmental issues for the auto industry Fuel Efficiency In 1975, the United States government passed the Corporate Average Fuel Economy

. In 2012, President Obama signed into law a drastic Corporate Average Fuel Economy (C.A.F.E.) standard whereas all new passenger cars and trucks must increase fuel economy to 54.5 miles per gallon (MPG) by 2025. This new law touts that it will save American consumers more than $8,000 in gas over the life of the vehicle, reduce oil consumption by 2 million barrels of oil per day, and cut harmful greenhouse gases by 6 billion metric tons over the life of the program (The White House). On the surface

Fuel for Thought Should our government regulate the fuel economies of our automobiles or should this be left up to the market? The Corporate Average Fuel Efficiency (CAFE) standards that were implemented in the 1970s contributed to great improvements in vehicle fuel economies. While we have environmental and political reasons to want cars with better fuel efficiency, there are also costs involved. The declining fuel economies of the last fifteen years seem to reveal

the fuel efficient vehicles with application of quality assurance practices. The idea behind this is particularly true for the companies which is related to transportation, where even small difference can save considerable amount of money. Moreover, in the fuel economy website, it is mentioned that the fuel economy predicts the fuel economy tags and to calculate a producer 's corporate average fuel economy (CAFE) is received from car when the testing is done at EPA 's National Vehicle and Fuel Emissions

CAR MPG STANDARDS THAT DONALD TRUMP WANTS TO OVERTURN The car mpg standards that wants to be overturned by the sitting American president Donald Trump includes the manufacture of vehicles that are fuel economy. This policies was put into action by the incumbent president Mr. Barrack Obama in 2011. This move has been viewed as a few of the steps that Donald Trump is taking to rewrite a few of the multitude policies that were enacted during the era of Barack Obama. During the enacting of this car mpg

The American automotive industry has been under a lot of pressure over recent years due to increased concern for the environment and increased global competition. An environmental scan on the American automotive industry shows that the global competition is a great cause for concern, new technology is providing an edge, emissions and laws regulating them are as tight as ever, and consumer opinion is reflecting concern for this. Global Competition Global competition in recent years has had a great

Fuel efficiency in automobiles has become a topic of much discussion in recent years in the United States. This is due largely to the environmental devastation that fuel emissions cause, but it is also sparked by the rising fuel costs. Making cars with high fuel efficiency not only saves consumers money, but also will drastically reduce the pollution that is caused by emissions. Today automakers are putting a tremendous amount of effort into making their cars more fuel efficient, both to meet government

and the Economy The effects the automobile has had on the economy of the world are tremendous. The major effects have came in many ways and include sales of the automobile, jobs provided to sell and manufacture the automobile, gas/oil sales to run the automobile, and the start of auto racing sport. The revolution of the automobile was the start of the most popular and successful industry in the world. The Effect of Gas/Oil There is a great effect on the economy due to