Even though a 56.2-mpg CAFE (Corporate Average Fuel Economy) average in 2025 is not yet written in stone, automakers do realize that the national standards will continue to rise well into the next decade. As a result, we expect to continue seeing trends such as: engine displacement reduction; the increased use of direct injection and turbocharging; an increasing number of gears in automatic transmissions; and increasing hybridization from start-stop systems to dedicated electric vehicles (EVs), to name a few.
A few years ago, when the 35-mpg standard for 2016 was announced, it was generally thought that hybrids would begin to make up much more of automakers’ sales than they currently do. Cost continues to hinder the growth potential of this technology. As a result, between 2008 and 2010, the share of new hybrid sales has remained at around 2.5%, despite higher fuel prices during the past few years. The hybrid market is expected to grow, but the price of the technology will temper this increase over the next few years. Continue reading ›