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On December 18th, congress passed new legislation that commits to fighting our oil addiction.  Among other things, the bill’s main objective is to increase the minimum mileage standard on cars, light trucks, and SUVs from the current 25 mpg to 35 mpg in 2020. This marks the first time since 1975 that this standard has been increased.  It also requires increased efficiency in lighting, appliances, and commercial and government buildings.  Another major point of the bill calls for a 6-fold increase in US ethanol production to over 36 billion gallons a year by 2022.  With these changes, the average US driver will save approximately $700-1000 a year at the pump, according to lawmakers, while reducing our dependence on foreign oil sources.

This new law is not perfect though.  The massive increase in ethanol production will rely on technologies that we currently don’t have.  There is a lot of work left to be done to deliver the inputs needed for ethanol’s growth.  We can’t afford to budget any more corn into ethanol production, so this  increase is going to have to come from other sources, such as switchgrass and algae.  Then there is the issue of how energy efficient producing ethanol is.  If we can’t produce it in an energy-positive way, force feeding the industry for the next 15 years won’t lead us very far. 

Many automakers are opposed to the new standards.  They argue that their offerings could be limited to comply with the regulations, and the industry could suffer for it.  There’s also questions of vehicle safety, as automakers make sacrifices to improve efficiency in any way they can.  Those opposed to the law would rather see incentives for companies that improve the mileage of their cars, rather than an industry-wide mandate.  However, if the price of oil keeps going north, automakers will be forced to improve mileage much faster even than the bill requires.

I understand the points made by the auto industry, but I still think this is a very good move by congress.  Consumers will demand higher mileage vehicles on their own if gas prices are high enough, but this new bill will require it no matter what the gas prices are doing.  I’m not so optimistic about the ethanol portion of this bill, but it’s good to see the US government doing more than paying lip-service to our addiction. 

    DaimlerChrysler’s Mercedes Car Group hopes to revolutionize compact cars in the US with its smart fortwo. The smart car, which looks more like a decked out golf cart than a passenger vehicle, goes on sale here in the states in early 2008. These cars can sell overseas, but it’s unclear whether Americans are ready for some major downsizing.

    Picture a Mini Cooper; OK, now can you picture a car nearly four feet shorter? At about 8 feet 6 inches long, the smart will appeal to drivers looking for a nimble ride to zip around in. Being so small though, the obvious safety concerns are huge. The official site at smartusa.com claims that the car is designed to achieve four star crash ratings, and a steel composed tridion safety cell will keep occupants protected.

    No matter how revolutionary and advanced the safety features are, I would not feel safe driving down the highway in such a car. Considering how suburbanized and spread out our lives are in the US, it’s hard to perceive the average American commuter choosing the fortwo. Other than those who somehow feel comfortable with their slim chances of walking away from a highway crash in a pint-sized car, smart car buyers will mostly be urban dwellers or those who plan to use it solely to putt around town.

    The smart is expected to achieve about 33city/41highway mileage with the new EPA estimates. For a car so small, these numbers don’t seem very impressive. The current subcompacts sold here get about the same, even with the size difference. The price is relative to the current offerings as well, with the smart ranging from $11,590 to $16,590.

    The smart car will be unlike anything we have ever seen here, but it’s not really breaking much ground. I myself would be a much bigger fan if it were electric or if it got something like 100 mpg. That said, I wouldn’t put myself in a highway deathtrap no matter how efficient it was. Most Americans will be in the same boat; it just won’t fit their lifestyle. The smart will have its cult-like following for sure, and will suit some buyers, but will struggle to survive in this type of market.

    Prospective car buyers across the US are in for a little surprise at the car dealership.  The long-used tests to determine a vehicle’s gas mileage are getting a real-world change for 21st century driving in the United States.  The new testing will be more realistic in accounting for American driving characteristics such as higher speeds and acceleration, use of A/C, and the effects of cold weather on driving. 

    The new rankings are definitely more accurate for the average American driver.  A 2007 4-cylinder Toyota Camry drops from 33 highway mpg’s to 30.  Hybrid ratings fare even worse, as the old rankings were very favorable to these cars.  Hybrid ratings are still good, no doubt, but people won’t be disappointed by lofty expectations. 

    Hopefully lower ratings will keep some people away from large SUVs and convince them to purchase a different vehicle.  A 2007 8-cylinder Ford Explorer that would be rated at 20 before is now listed at 18 highway mpg.  It is not a huge difference, but 20 versus 18 will be enough to convince some people to consider other options.

    I think it’s a good deal, but I would like to add one thing.  They should include the old estimates right underneath the new ones with big bold print words that say, “Look, if you drive like a typical American, you will get this crappier mileage listed up here, but if you drive slightly more conservatively, you can get these numbers down here.”  Maybe some more drivers would cut back on their idiotic habits behind the wheel.