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Dictating Consumer Demand

Auto Finance News

The Transportation Department and Environmental Protection Agency signed final rules today that set fuel-efficiency standards for model-year vehicles 2012 to 2016. The upshot: By 2016, cars and trucks should average 35.5 miles per gallon, nearly 10 mpg higher than what they’re getting now.

Granted, the mileage targets will vary by manufacturer, based on their specific mix of vehicles. Automakers that build more small vehicles will have higher targets than those that produce more trucks.

Ultimately, though, OEMs will have to tweak their product mix to adhere to these more stringent requirements. And from what I understand, barring $4-a-gallon gas, consumers tend to gravitate toward larger vehicles. Will this become a case of the government trying to force demand for small or hybrid vehicles?

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