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

The recent plunge in the retail price of gasoline caused many consumers to reconsider the types of vehicles they are willing to drive.  The light truck market, including pickups and vans, is of vital importance due to automakers several factors.  To begin with, for manufacturers, gross profits per light truck unit can be many times higher than the profits made from small, highly fuel efficient cars.  Next, light trucks will always 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. The year 2016 saw…

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