U.S. Corporate Average Fuel Economy (CAFE) standards require carmakers to achieve a fleet average of 54.5 mpg (equivalent to about 40 mpg on the window sticker) by 2025. But as gas prices dipped below $2.00 per gallon at the end of 2015 and sales of SUVs surged, companies may have a tougher time selling fuel efficient cars.
That’s the opinion of General Motors powertrain boss Dan Nicholson. The drop in gas prices “causes us to be pessimistic about customer willingness to pay for fuel-saving technologies,” Nicholson told Automotive News at this week’s Detroit Auto Show. GM used the show to highlight the 2017 Chevrolet Bolt EV electric car and other efficiency-focused models, including the 2017 Chevy Cruze hatchback and GMC Acadia crossover, which boasts weight savings and a downsized, four-cylinder engine option.
All of these models were planned when oil prices were higher, and they will help GM meet CAFE targets, but customers may be less interested than they might have been a year ago. The average fuel economy of new cars sold in the U.S. dropped 0.1 mpg in 2015 to 25.3 mpg, according to the University of Michigan Transportation Research Institute, which monitors new-car fuel economy.
But none of this changes GM’s future product plans, Nicholson said. The redesigned Chevy Cruze sedan will be offered with a diesel engine, and Nicholson said GM is considering that engine for the hatchback as well. Engineers had to install a Selective Catalytic Reduction (SCR) exhaust after-treatment system for the 1.6-liter engine on the sedan, and would have to go through the same process to certify the hatchback in the U.S., he said.
GM is also moving ahead with plans to offer a new nine-speed automatic transmission on front-wheel drive cars, and a 10-speed automatic on trucks, Nicholson said. Later this year, the carmaker will also launch the Cadillac CT6 Plug-In Hybrid first shown last year.
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