Corporate Average Fuel Economy Standards - 1203 Words

Corporate Average Fuel Economy Standards Lionell C. Henderson Northwood University MBA 644: External Environment Richard DeVos Graduate School of Management Fall 2015 Evening – Cedar Hill, Texas Professor James Latham Acknowledge a Problem Exist In 1973, the United States plummeted into a huge energy emergency, as a result of the Arab oil embargo. From October 1973 to March 1974, the United States oil supply from members of the Arab’s Organization of Petroleum Exporting Countries became cut off in revenge for the U.S. military aid to Israel during the Arab-Israeli war. The ban led to an unprecedented fuel scarcity nationwide, noticeable by extremely high fuel cost and lengthy rows of vehicles sitting at gas stations. In 1975, Congress passed the Corporate Average Fuel Economy Standards. Its motivation is to lower energy use by improving the fuel savings of cars and light trucks, raise the opportunity to create different fuel automobiles, and reduce greenhouse gas emissions by assisting to reduce climate change and raise air standards. Define the Problem CAFÉ standards are averages that all automobile manufacturers must attain yearly, for the production of their vehicles, as of 1978. The elevation of these standards forces auto manufacturers to react by producing more fuel-efficient vehicles, which enhances the country’s energy protection and reduces refueling cost, thus retaining the consumers cash. This, in turn, lowers the greenhouse gas dischargeShow MoreRelatedCorporate Average Fuel Economy ( Cafe ) Standards Proposed For Vehicles1812 Words   |  8 PagesIntroduction Corporate Average Fuel Economy (CAFÉ) standards proposed for vehicles produced between 2017 and 2025 were promulgated through the joint efforts of the National Highway Traffic Safety Administration (NHTSA) and the Environmental Protection Agency (EPA) utilizing regulatory powers granted in their charters allowing them to regulate carbon dioxide emissions from vehicles and other greenhouse gas producing sources. (Nichols, 2012) The essence of the proposal was that by 2025 vehicle manufacturesRead MoreEssay on Fuel Economy in American Automobiles1379 Words   |  6 PagesFuel efficiency in automobiles has become a topic of much discussion in recent years in the United States. This is due largely to the environmental devastation that fuel emissions cause, but it is also sparked by the rising fuel costs. Making cars with high fuel efficiency not only saves consumers money, but also will drastically reduce the pollution that is caused by emissions. Today automakers are putting a trem endous amount of effort into making their cars more fuel efficient, both to meet governmentRead MoreAmerican Auto Industry And The Environment Essay978 Words   |  4 Pagesshift to fuel efficient cars. After years of poor sales, the federal government took over GM and Chrysler in March 2009. (Amadeo Amadeo, 2016) Although gas prices fell, consumers continued to demand high mpg cars and trucks. The most recent issues involve the environment. Global warming has created a shift in global concern for the environment. This started the environmental issues for the auto industry Fuel Efficiency In 1975, the United States government passed the Corporate Average Fuel EconomyRead MoreQuality Control Of Car Emission Efficiency1218 Words   |  5 Pagesthe fuel efficient vehicles with application of quality assurance practices. The idea behind this is particularly true for the companies which is related to transportation, where even small difference can save considerable amount of money. Moreover, in the fuel economy website, it is mentioned that the fuel economy predicts the fuel economy tags and to calculate a producer s corporate average fuel economy (CAFE) is received from car when the testing is done at EPA s National Vehicle and Fuel EmissionsRead More The Automobile and the Economy Essay1021 Words   |  5 Pagesand the Economy The effects the automobile has had on the economy of the world are tremendous. The major effects have came in many ways and include sales of the automobile, jobs provided to sell and manufacture the automobile, gas/oil sales to run the automobile, and the start of auto racing sport. The revolution of the automobile was the start of the most popular and successful industry in the world. The Effect of Gas/Oil There is a great effect on the economy due toRead MoreThe Impact Of Global Competition On The American Automotive Industry879 Words   |  4 Pagesinnovating new ones, creating more jobs and contributing to a healthier economy (Investopedia, 2015). New Technology Today, the technology that sets products apart in the automobile industry is an imperative competitive aspect. Cars that were once traditionally run by the operator alone are now considered ineffective. Technology like power steering and power brakes have made automobiles much more useful and easy to operate. Now standard, these features were once new and innovative. Similarly, today weRead MoreThe American Automotive Industry Has Long Enjoyed Domestic Sales Supremacy1245 Words   |  5 Pagesto mid-1970’s saw a drastic change of position and reputation as the American economy was blasted by a fuel crisis in 1973, when OPEC nations engaged in an oil embargo, violently reducing global supply and seeing the price of oil and gasoline spike, with oil jumping 400% over 3 months (History.com, 2010). The spike in fuel prices coincided with an influx of inexpensive Japanese-built vehicles that were much more fuel efficient than the American products that were available at the time. In responseRead MoreTechnology And Its Impact On Society1614 Words   |  7 Pagesalso seen lawsuits due to wheels completely falling off their Dodge Durango’s. Government regulations for the auto industry change around every five years including regulations on controlling safety, fuel economy, and import regulations on vehicles. Industry members struggle to keep up with fuel economy regulations to the point where some companies have been found guilty of falsifying tests to pass regulations on time. Earlier this year Volkswagen was caught in a scandal and was found guilty of presentingRead More Fuel for Thought Essay2073 Words   |  9 PagesFuel for Thought Should our government regulate the fuel economies of our automobiles or should this be left up to the market? The Corporate Average Fuel Efficiency (CAFE) standards that were implemented in the 1970s contributed to great improvements in vehicle fuel economies. While we have environmental and political reasons to want cars with better fuel efficiency, there are also costs involved. The declining fuel economies of the last fifteen years seem to revealRead MoreImpact Of The American Auto Industry On The Economy867 Words   |  4 Pagesinternational cars are being designed, manufactured and bought by American consumers and exported to foreign markets today than those exclusively manufactured by American companies, redefining the American auto industry, while having a positive impact on its economy. International brands accounted for 45% of total sales in the U.S. in 2013 and have now risen to 59% of the market, and continue to grow. While the amount of American cars has decreased in the local U.S. market share to international ones, the increase