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The U.S. Automotive Market and Industry in 2025

The U.S. Automotive Market and Industry in 2025

In this study, the Center for Automotive Research (CAR) predicts the 2025 U.S. light vehicle market based on expected greenhouse gas requirements for the years 2017-2025. Through scenario modeling of four possible corporate average fuel economy (CAFE) standards, it's found that this mandate poses a serious threat to the U.S. vehicle market. It's determined that from 2017-2025 consumer cost will rise 40%, overall vehicle sales will drop by $5.4 million, and a total U.S. employment loss of 1.69 million jobs. CAR offers the solution of creating a review board composed of members from government, engineering firms, and industry leaders to evaluate CAFE standards every three years, rather than setting standards for far ahead projected dates.


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