CAFE + Fat America = Gas guzzlers will rule anew

Will CAFE push fat Americans into truck-based vehicles instead of small and hybrid cars?

Will hybrids become the base powertrain of larger sedans?

Will large Americans have to buy hybrid sedans or pickups?

Back in May I came across the article, Are Americans Too Big To Drive Small? Then, I found the article comical, but not particularly compelling. However, now that new CAFE regulations are primed to increase passenger car fuel economy while protecting pickup trucks and SUVs through 2020, I’m beginning to wonder if the truck loophole isn’t an even more monumental mistake than it seems — at least in terms of fleet fuel economy.

If most Americans are too chubby for small cars, what will their car of choice be once CAFE starts pushing passenger fuel economy a good bit higher, while protecting gas-guzzlers? Larger hybrids or pickup trucks?

While it’s hard to know exactly how CAFE will play out, current CAFE rules have proven that intended results are usually far from real world consequences, especially since it’s the average — not per car fuel economy — that counts. Hence, Toyota can use the much higher fuel economy of the Prius plug-in hybrid to balance the poorer fuel economy of the Camry, for instance.

Still, larger sedans will need to push their fuel economy higher, and that will probably mean hybrid technology needs to make up a larger percent of larger sedan sales.

Obviously, hybrid sedans cost more than conventional ones. So, if larger Americans find small cars simply unacceptable and they are forced to choose between more expensive hybrid sedans or truck-based vehicles, which will they choose?

It seems that if gas prices spike higher, hybrids could win this battle, but if gas prices stay below $5.00, passenger cars might be on a path to significantly declining market share. And that won’t be good for overall US fuel economy, but at least it will be good for Big 3 automakers.

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