Fuel Efficiency standards could hurt the Ford Focus Electric

[FocusE]

President Obama announced last year an agreement with thirteen major auto makers to increase average fuel economy to 54.5 MPG by the model year 2025.

Ford, GM, Mazda, Mitsubishi, Nissan, Honda, Chrysler, Hyundai, BMW, Jaguar/Land Rover, Kia, Toyota and Volvo all agreed to the new standard.

In today's gas prices, this higher average would save drivers $1.7 trillion in fuel costs. But how will this affect electric vehicles like the 2012 Ford Focus Electric? Some speculate that higher fuel economy will lower the demand for electric vehicles. After all, if the price difference between gasoline powered and electric vehicles stays the same, then it would take many years to see any savings from buying a Ford Focus Electric over a gasoline powered Focus.

However, for the short term Electric Vehicles are safe. Even with hybrid cars around the Nissan Leaf is selling faster than Nissan can provide it, and the Ford Focus Electric has captured lots of media attention. The 2012 Ford Focus Electric is supposed to be available by the end of 2011.

 

[fordfocuselectric]

Some forecasts estimate 10 million electric vehicles on the road by 2020. If the Ford Focus Electric and other electric vehicles are ready soon, those numbers might even be higher. I think it will really matter where the electricity is made, and how convenient it is for re-charging the Ford Focus Electric. If those are solved, than higher MPG of gasoline cars won't affect sales of Electric Vehicles at all.

 

[happy12]

Hello everyone, my name is Luxi, very happy to be here, thank you for the care.

 

[toffty]

It's all about the price of fuel, not fuel efficiency. Gas prices will go back up. Unlike the oil embargo 35 years ago where the US and Europe were the only major consumer of oil, China and India now rival the US's consumption of oil - there's just not enough refined oil to go around anymore. As the global recession ebbs, gas prices will be at $4/gal national US average before you know it. $5/gal won't be many years after that.
At the $4/gal mark, no matter the efficiency of cars, more people will look at electric or at least plug-in hybrid.
$5,6,7/gal? people will flood the EV/PHEV markets.