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The U.S. Automotive Market and Industry in 2025

Introduction

On May 19, 2009, President Obama announced a new national fuel economy program requiring an average fuel economy standard of 35.5 miles per gallon for new light vehicles sales by 2016. The plan overruled the Energy Independence and Security Act which was signed into law in December 2007 and increases the new fuel economy standard four years sooner than previously planned. On May 21, 2010 the President directed two government agencies, the U.S. Environmental Protection Agency (EPA) and the National Highway Traffic Safety Administration of the U.S. Department of Transportation (NHTSA), to start planning new fuel economy standard or levels of green house gas (GHG) emissions for 2017- 2025. On October 1, 2010, these two agencies took the first step by announcing their initial assessment, or Notice of Intent (NOI), for stringent standards for model year 2017-2025 vehicles. In a joint document, the Interim Joint Technical Assessment Report (TAR), the California Air Resources Board (CARB) and EPA/NHTSA proposed four GHG emission reduction scenarios...

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