UM: Auto Industry

The Detroit Free Press reports on efforts of the Detroit Big Three automakers to comply with stricter fuel standards. Walter McManus, director of automotive analysis at UM’s Transportation Research Institute, researched the effect of increasing average fuel economy to 43 mpg by 2020. (The federal government mandates that automakers boost their average fuel economy to 35.5 mpg by 2016. The Obama administration has proposed raising existing CAFÉ standards even higher, to 62 mpg.) McManus forecasts that the Big Three will see an increase in sales and a $5.1 billion bump in profits as a result of more energy-efficient cars. [Source]