Is Auto on Track to Meet Government Standards?

Both the steel and aluminum sectors have made major strides in supplying automakers with new, strong-but-light materials to take weight out of vehicles and boost their miles per gallon while lowering harmful tailpipe emissions. But to meet the current federal requirements for 2025, which call for a fleetwide average of over 50 mpg, the auto industry must find a way to lighten cars and trucks by another 7 percent—a task that appears daunting.

“The general sense in the industry is that they can get there, but it is going to be expensive,” said Jody Hall, vice president of automotive for the Steel Market Development Institute. She notes that the industry has not met its fuel economy targets since 2015 without offsetting credits. If the technology required to meet the government fuel economy mandates adds too much cost to new vehicles, drivers will hang on to their old, less efficient cars and trucks longer. Lower auto sales could lead to lower auto production and job cuts at auto plants. “Some people believe the government regulations are driving change too fast, so fast it could cause bigger problems in terms of lower vehicle sales and higher costs to consumers,” Hall said. “It’s good to challenge the industry to reduce GHG emissions and raise fuel economy, but not at such a demanding rate that it impacts the economy.”