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The Center for Automotive Research will examine the implications for product development of the 54.5 mpg CAFE fuel mandate that is now a federal regulation. Currently, estimates for the cost of compliance range from zero to $10,000 per vehicle for what is a difficult engineering task that has become – once again and as always – an ideological battleground, with posturing from automakers, regulators and pressure groups. The ability of product development engineers and their auto companies to meet the new standards and/or garner credits to offset some vehicle shortfalls will determine the type of vehicle you can buy, and how much you will pay for it. With safety regulations already on the books potentially adding thousands to the cost of a new vehicle, the social implications for automobility are serious; Moreover, if the implementation of CAFE regulations goes badly it could damage one of the U.S.’s best wealth and job creating industries at a time when growth is desperately needed. Continue reading →