The Big 3 threatened (comments from Lutz in particular come to mind) that the only way forward to higher fuel economy would be through expensive technology (hinting at hybrids), and that consumers would pay the price.
But as we already know, there's still a lot of low-hanging fruit yet to be picked:
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Industry experts said the first changes will be relatively subtle, relatively cheap and relatively soon. They'll include improved aerodynamics, six-speed automatic automatic transmissions and dual-clutch manual transmissions. Engine-driven components like power steering pumps will give way to electric ones. More efficient gearing and tires with lower rolling resistance will bring still more improvements. The cumulative effect can be significant. Ford says these tactics boosted the fuel efficiency of the V-6 Taurus by 10 percent.
Subcompacts are the fastest-growing segment of the market, but no one expects Detroit to dump SUVs in favor of microcars. Instead, automakers will use a lot more aluminum, magnesium and lightweight steel to reduce the weight of all their cars. Ford has said it will trim 250 to 750 pounds from every car in its lineup between 2012 and 2020.
The most radical changes will come under the hood. Automakers will embrace direct injection -- a more efficient means of getting fuel into the combustion chamber -- in a big way and bring more diesel and hybrid drivetrains to market.
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Source: Wired -
How Detroit Will Reach 35 mpg