Automotive

Auto manufacturers still struggling to comply with Obama era standards

The U.S. Environmental Protection Agency (EPA) released its annual Automotive Trends Report, which provides the public with a single source of information about new light-duty vehicle greenhouse gas (GHG) emissions, fuel economy, technology data, and auto manufacturers’ performance in meeting the agency’s GHG emissions standards. The report shows that fuel economy remains high but has slipped slightly from the record pace set in previous years and that reducing emissions through innovation remains a priority for automotive manufacturers.


“This report shows in detail how few auto manufactures were able to meet the unrealistic emissions standards set by the Obama administration without resorting to purchasing emission credits,” said EPA administrator Andrew Wheeler. “We have set realistic standards in 2020 that will reduce emissions as well as vehicle costs and maintain consumer choice going forward.”

Fuel economy for Model Year (MY) 2019 was 24.9 miles per gallon, lower than MY 2018 by only 0.2 mpg. Since MY 2004, when the fleet averaged 19.3 mpg, fuel economy, and CO2 emissions have improved in 12 out of 15 years.

The report also assesses compliance performance for individual automakers, and for the U.S. fleet, with the GHG emissions standards for light-duty vehicles. This year’s report once again shows that only three large manufacturers complied with the MY 2019 standard, based on technology factors of their vehicles alone. When accounting for credits, however, the report shows all large manufacturers are in compliance. Eleven out of 14 large manufacturers used a combination of technology improvements, banked credits, and purchased credits to maintain compliance in MY 2019.

Key Highlights

  • Due to a combination of technology, innovation and regulatory flexibility, the average new MY 2019 vehicle sold in the U.S. was near record low GHG emissions and near record high fuel economy.
  • New vehicles continue to make progress on emissions while providing consumer choice for Americans. For example, sport utility vehicles reached record high market share, while also achieving record high fuel economy and record low CO2 emissions.
  • Manufacturers continue to have a large bank of credits to use toward compliance in future model years, however, about two-thirds of the current credits will expire after model year 2021.

Published in the March 2021 Edition

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