Auto/Economy
4:22 pm
Wed November 16, 2011

Obama calls for 54.5 mpg fuel efficiency by 2025

The Obama Administration plans to nearly double the fuel efficiency requirements for light-duty vehicles by 2025. 

The administration says requiring an average of 54.5 mpg will help drivers save money, reduce U.S. dependence on oil and keep the environment cleaner.

Sean McAlinden is chief economist with the nonprofit Center for Automotive Research in Ann Arbor.

He says the plan calls for too much, too soon and could be bad for the still-recovering auto industry.

"The same government that did so much to save our domestic industry is laying the groundwork for destroying the industry again, destroying its market, by forcing it to build cars that  people can't afford and may not even want."

McAlinden expects the new standards will increase the cost of a vehicle by so much that people will simply keep their old cars longer. He says drivers already keep their cars for an average of 11 years.

He says it would make more sense to aim for around 42 mpg by 2025.