"We anticipate that 2012 standards can be met with modest additions of existing technologies. Raising CAFE standards "will be most beneficial to General Motors and least beneficial to Chrysler."
Controls to more closely monitor gas usage and electronics for optimizing acceleration would be needed, which would create growth in advanced controls.
"We estimate that the auto industry must grow the fuel savings technology market by an incremental $4.3 billion to meet CAFE standards in 2012, and more so in 2013-20. Key beneficiaries of this growth include BorgWarner, Johnson Controls, and Tenneco."
The report also explains why Toyota has continued to fight against CAFE standards -- it would force Detroit to be more competitive, so the company would lose its edge.
"The requirement of the industry to meet higher CAFE requirements poses a threat to Toyota’s market position, in our view, both in terms of its public view and in reality, since its competitors will be closing the gap with Toyota, again in both perception and reality."
As you see in the chart, the U.S. by far trails the rest of the world in fuel economy, and it's not just because of our bigger vehicles. While we might not have as many SUVs on the road, raising CAFE can be done while still producing safe and comfortable vehicles.
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