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JSH · 02-25-2020, 06:37 PM

There are several reasons small cars are dying. Economics are one. This has been talked about a lot but I haven’t heard anyone talk about another big reason – Corporate Average Fuel Economy.

The NHTSA changed CAFE rules back in 2007 so that every car has a fuel economy target based on footprint (Wheelbase x Track) and type (Car or Truck). Those new rules went into effect in 2011. Cars have to increase fuel economy 5% per year while truck requirements increase 3.5% per year. It is getting to the point on the fuel economy curve that current small car designs don’t meet CAFE requirements and customers aren’t willing to pay for the tech required to hit those targets.

The 2019 Honda Fit has a footprint of 40.3 ft2. For 2020 it is required to get 49 mpg CAFE (which equals 37 mpg combined on the EPA sticker) It is rated at 33 mpg combined. By 2025 it will be required to get 61 mpg CAFE (46 EPA combined). That simply is not going to happen without going full hybrid like the Prius C.

On the same lot Honda has the 2020 HR-V which is built on the same platform as the Fit. It has a footprint of 43.3 ft2 and is required to get 38 mpg CAFE (29 mpg EPA). It is rated at 30 mpg combined. By 2025 it will be required to get 48 mpg CAFE (36 mpg EPA)

Therefore, every Honda Fit sold puts Honda 4 mpg negative for their CAFE fleet average. The fine is $55 per mpg so that would be a $220 per Fit. Meanwhile the HR-V is 1 mpg ahead of target so that extra mpg offsets part of the Fit’s debit. At the end of the year if an automaker is ahead of their CAFE target they can bank those mpg credits for the future or sell them to other automakers that didn’t hit their target.

02-25-2020, 06:37 PM	#496 (permalink)
JSH AKA - Jason Join Date: May 2009 Location: PDX Posts: 3,601 Adventure Seeker - '04 Chevy Astro - Campervan 90 day: 17.3 mpg (US) Thanks: 325 Thanked 2,147 Times in 1,454 Posts	There are several reasons small cars are dying. Economics are one. This has been talked about a lot but I haven’t heard anyone talk about another big reason – Corporate Average Fuel Economy. The NHTSA changed CAFE rules back in 2007 so that every car has a fuel economy target based on footprint (Wheelbase x Track) and type (Car or Truck). Those new rules went into effect in 2011. Cars have to increase fuel economy 5% per year while truck requirements increase 3.5% per year. It is getting to the point on the fuel economy curve that current small car designs don’t meet CAFE requirements and customers aren’t willing to pay for the tech required to hit those targets. The 2019 Honda Fit has a footprint of 40.3 ft2. For 2020 it is required to get 49 mpg CAFE (which equals 37 mpg combined on the EPA sticker) It is rated at 33 mpg combined. By 2025 it will be required to get 61 mpg CAFE (46 EPA combined). That simply is not going to happen without going full hybrid like the Prius C. On the same lot Honda has the 2020 HR-V which is built on the same platform as the Fit. It has a footprint of 43.3 ft2 and is required to get 38 mpg CAFE (29 mpg EPA). It is rated at 30 mpg combined. By 2025 it will be required to get 48 mpg CAFE (36 mpg EPA) Therefore, every Honda Fit sold puts Honda 4 mpg negative for their CAFE fleet average. The fine is $55 per mpg so that would be a $220 per Fit. Meanwhile the HR-V is 1 mpg ahead of target so that extra mpg offsets part of the Fit’s debit. At the end of the year if an automaker is ahead of their CAFE target they can bank those mpg credits for the future or sell them to other automakers that didn’t hit their target.