What will Paris climate change agreement mean for auto industry?
The U.S. and 195 other nations made some sweeping commitments at the Paris climate change talks. What will they mean for the auto industry?
The U.S. auto industry is already hard at work trying to meet stricter fuel economy standards of 54.5 mpg by 2025. Different automakers are taking different approaches to meet the goal. Ford recently announced it will spend $4.5 billion on electric vehicles by 2020, adding 13 new battery-based models. Obstacles to widespread use of batteries remain: high cost, limited range and long charging times. But battery prices are falling.
Honda, Hyundai and Toyota are focusing on hydrogen vehicles. Internal combustion engines will continue to dominate the American fleet for the foreseeable future, but they will be smaller, using turbochargers, electric turbos and hybrid engines.
One problem overall: consumer acceptance. With gas prices so low, the incentive to pay more for a highly fuel-efficient vehicle has diminished.Download Bulletin PDF