Global Emissions and MPG Regulations
If automakers want to stay in business they will have to significantly clean up their fleets, and electrification, they know, is an ideal way to do that.
When it gets to be crunch time later this decade and next, they will have to introduce more hybrids, plug-in hybrids, and electric cars.
The less gasoline they use, the easier it is to spike their fleet average mpg score.
How’s that for a motivator? Pressure will be on for “bridge” technologies like hybrids. Plug-in hybrids and all-electric vehicles boost the ability even higher to meet government mandates.
Laws with teeth include U.S. Corporate Average Fuel Economy (CAFE) regulations and California’s Zero Emissions Vehicle rules calling for one-in-seven ZEVs by 2025. Beyond that the Europeans are clamping down with more focus on CO2 emissions, which are the other side of the mpg equation – increasing mpg usually reduces CO2, or reducing CO2 increases mpg.
Also driving this is Japanese rules, and China keeps upping the incentives for EVs and several global automakers are working like busy bees with their state-mandated joint venture partners in China.
Globally, rules are getting tighter.