WEB EXCLUSIVE: A Tale of Two Automakers
How Ford and GM Aim to Meet Toughening Fuel Economy Standards — And How It Will Impact You

by Garrett McKinnon
NOLN Staff Writer

There are two sides to every coin. Two sides to every argument. And, in the case of GM and Ford, two somewhat differing strategies of dealing with rising fuel economy standards.

First, a primer. The incredible growth the nation has enjoyed the past five decades has led to a dramatic increase in transportation. In the mid-1960s, the U.S. vehicle fleet averaged about 719 billion vehicle miles traveled each year. By the mid-2000s, that number had reached 2.9 trillion, or more than quadruple the number of miles traveled from five decades earlier.

However, the negative to that increase in transportation is that the nation’s reliance on imported fuel has more than quadrupled, as well. During the mid-1960s, U.S. vehicles consumed 61 billion gallons of gasoline each year. By the mid-2000s, that was up to 138 billion gallons. Unfortunately, most of that fuel came from overseas, as in the mid-1960s, only about 13 percent of crude oil was imported. By 2005, 66 percent was imported.

Reducing America’s reliance on imported oil is one of the key factors driving Corporate Average Fuel Economy (CAFE) and other regulatory initiatives imposed by federal and state governments. Since 1974 when the first CAFE standards were introduced, the fuel economy of cars has more than doubled, while the fuel economy of light trucks (a category that includes minivans, vans, sport-utility vehicles and pickups) has increased by 53 percent. Critics say that’s not enough, and the Obama administration has proposed a streamlined federal mileage increase that would force automakers to improve their fleet-wide fuel efficiency by 5 percent per year through 2016, at which time the average fuel economy for a manufacturer’s new-vehicle fleet would have to average 35.5 miles per gallon (cars would have to average 39 miles per gallon, while trucks would have to achieve 30 miles per gallon, both roughly 30 percent more efficient than the fuel economy standards achieved by current new-car fleets). The tradeoff for this national standard is an agreement by several states, namely California, not to impose their own unique (and possibly more severe) mileage standards. (Bureaucrats with the state of California are on record as predicting — hoping? — that by 2050 only 10 percent of the vehicles sold in that state will be powered by internal combustion engines.)

Can automakers achieve such lofty standards? (And, perhaps just as important, but a topic best left for another time, is will customers purchase these new fuel-efficient vehicles if automakers expect customers to pay a premium for them?)

“It’s a challenging compliance target, but we think (the goals) are achievable,” said John Trajnowski, an engineer with Ford Motor Company.

How the last two domestically owned automakers plan on meeting these new standards is an interesting tale, and one that will almost certainly impact the fast lube industry in years to come.

Ford’s Strategy: Technology Migration

Speaking at a recent seminar in Las Vegas, Nevada, Trajnowski said Ford has come up with a three-tiered timeline that will see its vehicles gradually migrate to technology that will allow them to meet new government fuel economy standards.

“This plan is designed to meet legislative standards while also meeting customer demands,” he said. In the near term, a period that will end with the launch of 2011-model-year vehicles next fall, Ford has, among other things:

• Launched its EcoBoost line of direct-injection, turbocharged engines.
• Introduced electric power steering systems.
• Began to replace four- and five-speed automatic transmissions with six-speed transmissions.
• Launched four hybrid models.
• Introduced more small vehicles like the redesigned Fiesta car and Transit Connect van.

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