Federal Government proposes report card grades for new vehicles

Federal Government proposes report card grades for new vehicles

The Department of Transportation (DOT) and the Environmental Protection Agency (EPA) are proposing a new approach to fuel economy window sticker for cars and trucks, beginning in model year 2012. The government agencies are developing two window sticker ideas; one that will indicate not only the vehicles fuel economy, but the total greenhouse gas emissions that are involved with producing and distributing vehicles , and the other the vehicles fuel economy compared to others in its class.

Both labels have also been designed to better incorporate new vehicle types that aren't represented well by the current labels, including mainly electric and plug-in hybrid vehicles.

It would translate the energy usage of such vehicles into miles per gallon equivalent, or MPGe.

Of greatest controversy, however, is the proposal to prominently include a letter grade that corresponds to a vehicle's overall environmental performance.

Several manufacturers have already indicated they will oppose this approach and NADA has stated publicly it will do so on the grounds that the letter grades will confuse the buying public, make vehicle purchasing decisions more difficult or treat certain automakers or fuel types unfairly. Dave McCurdy, CEO of the Alliance of Automobile Manufacturers, which represents Toyota, GM, Ford and eight other automakers, said Monday the rating system falls short because it is imbued with schoolyard memories of passing and failing.

On the other hand, Hyundai Motor America CEO John Krafcik Thursday praised the plan saying that, “for those automakers who choose to focus on fuel-efficient segments (of the car market), this grading system is a good thing.”

Last month, Krafcik announced Hyundai planned to boost the fuel economy of its fleet to at least 50 miles per gallon by 2025. In 2008, Hyundai led the industry in the United States with a fleet wide fuel economy average of 30.9 mpg, ahead of Honda Motor Co.'s 30.1 mpg and Toyota Motor Corp.'s 29 mpg.