New automotive regulations could curb steel demand in US

Tuesday, 28 December 2010 02:24:20 (GMT+3)   |  
       

According to the new corporate average fuel economy (CAFE) standard, automakers must reach an average fleet fuel economy of 35.5 miles per gallon (mpg) by 2016, 6.3 mpg more than the current CAFE standard. Light trucks will have to get about 30 mpg, 5.1 mpg above the current rate. 

The new regulation has forced major automakers to strip hundreds of pounds off of future pick-up trucks by substituting steel for aluminum, new steel alloys, and magnesium-making vehicles lighter, and therefore more efficient.

The weight of trucks has increased significantly in recent years, up 22 percent from 2000 to 2010, while fuel economy was only up 2 percent over the same period.


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