US Authorities Planning Closer Estimate of Car Mileage, May Dent Hybrid Sales
Posted on: Wednesday, 11 January 2006, 15:00 CST
In a move that could shake up showroom transactions, especially in the burgeoning hybrid segment, the US Environmental Protection Agency has announced plans to overhaul the way it estimates fuel economy.
The agency said the shakeup would provide consumers with 'real-world' fuel economy information when shopping for cars, SUVs, and pick-up trucks. The new fuel economy estimates will include vehicle-specific data from tests designed to replicate three factors that can greatly affect fuel economy: high speed or rapid acceleration, use of air conditioning and cold temperature operation.
Under the new methods, the EPA said that the miles per gallon (mpg) estimates for most vehicles driven in cities would drop between 10% and 20%, while highway mpg estimates would generally fall by between 5% and 15%.
"With President Bush encouraging energy conservation, the EPA is ensuring American motorists can be confident that the fuel economy estimates more closely reflect today's real world driving experiences," said EPA administrator Stephen Johnson.
"Consumers weigh a variety of factors when shopping for a new vehicle. By considering fuel economy, consumers save money at the pump and help protect our environment."
While the new approach has been welcomed by most, some industry observers have drawn attention to the fact that the EPA's new method may ironically serve to over-penalize the kinds of technologies that they are intended to encourage.
Gasoline-electric hybrid vehicles will be more affected by the move, with ratings for city driving decreasing an average of 20% and 30%. With this degree of correction, a 60mpg Toyota Prius would suddenly be rated at 42mpg. And with many new hybrids due to arrive in showrooms in the coming years, the potential for backlash from consumers who did not get the advertised mileage may become a concern
Regardless, the new methods will take effect for model year 2008 vehicles, which will generally be available for sale in fall of 2007.
Source: Datamonitor
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