Sales slump, pump prices muddle US auto efficiency
19 Sep 2008 22:56:51 GMT Source: Reuters
By John Crawley WASHINGTON, Sept 19 (Reuters) - Projected U.S. auto fuel efficiency for 2008 model vehicles nudged higher, the Environmental Protection Agency said on Friday, but cautioned its estimate was likely low due to sharply higher fuel prices and volatile vehicle sales. The EPA, which annually calculates expected fuel performance for the entire fleet, said the current projection for 2008 models is 20.8 miles per gallon compared to 20.6 for the year ago period. "It is extremely likely," the agency said, that the estimated average is "too low" and would be revised next year once the degree of industry volatility is known. Nevertheless, EPA officials pointed out the 20.8 mpg figure is the highest since 1993 and stressed that its partial analysis did not contradict incremental gains experienced since 2004. "This report shows we're driving in the right direction," EPA Administrator Stephen Johnson said. But the Union of Concerned Scientists, called the EPA assumption outdated and said government and industry could be more aggressive on efficiency in the near term. "Consumers are doing the best they can to buy more fuel efficient cars and trucks, but automakers are not providing enough options in showroom floors," said Jim Kliesch, senior engineer for the environmental group. The EPA said the 2008 efficiency calculations do not fully reflect the dramatic jump in gasoline prices this summer or the corresponding slump in sales, especially for Detroit-based manufacturers whose product lines are heavy on less efficient sport utilities and pickup trucks. U.S. auto sales were down more than 11 percent overall through the first eight months of 2008 compared with a year earlier as tight credit markets, a weak economy and rising gasoline prices pressured demand for trucks and SUVs. Sales data so far suggest that subcompact, compact and midsize cars are the only classes to have met or exceeded sales projections with gas prices averaging $3.50 per gallon this year, EPA said. Vehicle product plans were submitted to the government with gasoline price ranges of between $2.50 and $3 per gallon, the EPA said. An EPA spokeswoman said a final figure for the 2008 model year may not be published until mid- to late-2009. The inconclusive EPA report is apt to further muddle the picture for regulators working to set longer-range fuel efficiency targets for industry. The National Highway Traffic Safety Administration (NHTSA) has been criticized by environmental groups and some members of Congress for drafting a plan for 2011-2015 that relies on outdated gasoline price assumptions. NHTSA uses EPA data in its calculations. Struggling Detroit automakers are lobbying Congress to extend $25 billion in low interest loans to the industry to help it make more fuel efficient vehicles and meet a federal mandate for 40 percent better fuel efficiency by 2020. Hybrids led by Japanese manufacturers are the most efficient in the mass market but U.S. manufacturers have made progress, according to product plans submitted to environmental regulators. (Editing by Tim Dobbyn)
