auto industry

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On March 26, President Barack Obama pushed new fuel economy regulations for 2011 through the Department of Transportation. The regulations give some teeth to an initiative begun by the Bush administration to reduce emissions and our dependence on foreign oil.

The new standards were drafted quickly to give automakers time to retool production lines to meet the requirements. The 2011 model year was targeted so that the accelerated standards could be implemented quickly while not affecting the aggressive plans Obama has for future fuel economy and emissions standards.

Here’s how the mpgs will play out in 2011:

  • Passenger cars (sedans, compacts, etc.) must average 30.2 mpg
  • Light trucks (pickups, SUVs, etc.) must average 24.1 mpg
  • National fuel savings: 900 million gallons
  • Cost to the auto industry: $1.4 billion

These are small increases — smaller even than in the Bush proposal — that are expected to be met with little drama by embattled U.S. auto makers. Keep an eye on California, though, as it’s allowed to set its own fuel economy standards in the next few months, along with any other state that should fancy cleaner air and less time at the gas station.

Zap Xebras Ready to Roll

Neighborhood electric vehicle manufacturer ZAP reported that its third quarter, which ended September 30, was its best ever, or at least since it launched the Xebra model in 2006. In fact, it shipped 200% more vehicles in the third quarter of 2008 than it did in the same quarter last year.

While this is absolutely good news — the company has even upped its workforce by 30%, something the Big Three couldn’t do this summer — it has to be put in perspective. ZAP is a small company, so a 200% increase in units shipped means 240 went out the door this summer, as opposed to 80 in 2007.

In comparison, the rest of the industry slumped hard in August. Sales were down 15.5% over last year, making it the worst August the auto industry has seen in a decade. GM’s sales were down 20%, Ford was down 27%, Toyota dropped 9% despite the popular Prius, and even steady Honda dropped 7%. But Chrysler had it the worst in August, with a 34% drop in sales.