Daimler Invests in Tesla as US Plans New Fuel Mileage Standards
For years, vehicle fuel mileage standards were regulated a series of complicated federal CAFE and state-based standards. Reflecting the industry’s new approach to green technology, the Alliance of Automobile Manufacturers has come out in support of new proposed federal mileage standards which President Obama is set to introduce the new standards in a Rose Garden briefing today.
Under the new federal mileage guidelines, the Administration has proposed raising standards to the levels introduced in California just last year (and supported by the NHTSA.) As a result, mileage standards will rise to 42 miles per gallon for cars and 26 MFG for trucks by 2016. Auto makers concluded, after lengthy discussions on public policy options, that a uniform federal standard would simplify their manufacturing and planning for the US market. Accelerating the goals set in the 2007 Energy Independence and Security Act, nation-wide standards are on course to achieve 35.5 miles per gallon 4 years in advance of the previous 2020 goal. Previously, auto makers had to work with “three regulatory bodies, 15 states, a dozen automakers and many environmental groups” according to Dave McCurdy, head of the Alliance. In addition to setting new standards, the new regulations are expected to create a framework in which EPA standards are determined through 2016, including CO2 credits and new standards for electric mileage measurement.
Tesla Gets a New Lease on Life
The shifting landscape has led to a consolidation not only in the regulatory environment, but also in the automotive industry generally. Just this week, Daimler (freshly removed from its relationship with Chrysler) entered into a strategic alliance with electric car maker Tesla. Daimler purchased a minority stake in the company and agreed to provide manufacturing and technology support to help bring Tesla’s cars to market. After earning public support and a number of pre-orders, Tesla successfully lined up the partnership that will help it secure the lithium ion technology it needs to move forward with commercial production on its widely-admired electric roadsters:
