e360 digest
23 Jun 2009:
Focus on Fuel Economy
Would Boost Profits for U.S. Car Makers
Detroit car makers would increase profits by $3 billion annually and significantly boost sales if they improve the fuel economy of their vehicles by 30 percent to 50 percent, according to a new study. Conducted by the University of Michigan’s Transportation Research Institute, the study found that a major reason for the precipitous decline of Detroit’s sales and profits in recent years was the refusal of the Big Three automakers to recognize the importance of fuel economy to consumers. That failure meant the steady loss of market share to foreign car companies whose vehicles got significantly better mileage, the study said. Had the Big Three paid attention to their own market research showing the importance of fuel economy, “they would not be in Chapter 11 today,” said a co-author of the study. The study concluded that increasing average mileage to 35 to 40 miles per gallon would boost profits and increase sales equal to the production from two large vehicle assembly plants.
Yale Environment 360 is
a publication of the
Yale School of Forestry
& Environmental Studies.
DEPARTMENTS
OpinionReports
Analysis
Interviews
e360 Digest
TOPICS
BiodiversityBusiness & Innovation
Climate
Energy
Forests
Oceans
Policy & Politics
Pollution & Health
Science & Technology
Sustainability
Water
REGIONS
Antarctica and the ArcticAfrica
Asia
Australia
Central & South America
Europe
Middle East
North America
ABOUT
About e360Contact
Submission Guidelines
Reprints
CONNECT
BookmarkEmail newsletter
Twitter: YaleE360
e360 on Facebook
Share e360
Subscribe to our feed:
Top Image: aerial view of Iceland. © Google & TerraMetrics.
OF INTEREST
