Fuel Efficiency Continues to Improve/ Stiff MPG Standards Adopted in the U.S. (CAFE Rules) and Abroad, Business and Industry Trends Analysis

The light truck market, including pickups and vans, is of vital importance due to several factors.  To begin with, for auto manufacturers, gross profits per light truck unit can be many times higher than the profits made from small, highly fuel-efficient cars.  However, light trucks burn more fuel than smaller cars, having an effect on both a manufacturer's total CAFE average fuel efficiency and on the total demand for gasoline. CAFE (corporate average fuel economy) standards were first issued by U.S. federal regulators in the 1970s as a method of setting average fuel economy standards for carmakers.  Previous standards under…

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