3 Great was forced to dramatically increase fuel economy

Posted by Cash for Clunkers on March 09th, 2010

09Mar

A bill the Senate to increase fuel economy mandates 40 percent would force Detroit’s Big Three automobile manufacturers to significantly reduce the profits of big sport utility vehicles and pickup sales, according to a Wall Street analyst.
According to the motion in the Senate, the rules of fuel rising to 35 percent for cars and trucks miles per gallon in 2020. Builders say a task that requires them to increase their expensive technology to reduce the size of some vehicles and to stop selling some of the bigger vehicles.
Car manufacturers, said the Senate bill, approved 65-27 last Thursday, will be the fuel economy of cars for the first time in 25 years to rise, several billion dollars. Chrysler Group, said that the company may fail.

“We estimate that the Big Three can only cover a significant decrease in the level of 35 miles of 60 percent of the large SUV and pickup sales, an increase of around 34 percent and the percentage of truck fuel economy, L 25 vehicle fuel economy, “Brian Johnson, an auto analyst with Lehman Brothers in New York, in its latest report.
Environmentalists and supporters of the bill the Senate believe that there is no right of car manufacturers need to reduce the size of vehicles to meet the requirements. What is not disputed that SUV and pickup sales have been for many years of bread and General Motors Corp., Ford Motor Co. and Chrysler butter.

In 2007, 34 percent of GM’s sales were a large SUV and pick-up full-size. At Ford, is 31 percent and 20 percent were Chrysler. In contrast, large-scale and full-size SUV sales of Nissan Motor Company sales only accounted for 10.5 so far this year, and sales 8 Toyota Motor Corporation.
One of the main areas of General Motors and Ford Motor Company is concerned about his great and powerful, but less efficient engines addiction, Johnson said.

Although approximately 60 percent at Honda Motor Co. and Toyota in 2006, production of 4-cylinder engine, only 14 of the total production of Chrysler and Ford 4-cylinder engine, and only 21 percent, General Motors .
In the automotive industry trade group representatives such as the Detroit 3 and Toyota Alliance, said the report shows that there is a sharp increase in the real effect.

“The need to increase the levels of fuel consumption, but at a reasonable level so that workers across the country do not lose their jobs or pensions or other benefits,” the spokesman said Gloria Bergquist . “As this report shows that economic threat is real, this is serious.”
In May this year, Standard & Poor’s issued a report based on the fact that fuel economy and tough regulations on vehicle emissions would be “a real threat to global car manufacturers, financial performance, in particular, some under the pressure of the razor-thin margins. “with the bill the Senate approved the bill has now moved to the House, they are not expected to increase the corporate average fuel economy of the task, until ‘ autumn.
The difficult task of saving fuel, you need to step up equipment, including engines, brakes, radiator, EBC pads, and other auto parts. Advertisement This means additional costs, the resort national car manufacturers.
Wednesday, the House Energy and Commerce Committee should adopt a bill, six, in order to improve fuel efficiency. Congress of the United States Dingell, D-Dearborn, chairman of the commission and the car manufacturers, 10, said GM, Ford and Chrysler, as well as with the United Auto Workers union President, CEO we are talking about The bill savings fuel.

He urged the companies to be more stressed that they would agree to do so, to improve fuel efficiency aggression. Dingell also held with the most senior U.S. official vehicle manufacturer closed door meeting last Monday night.

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3 Great was forced to dramatically increase fuel economy