U.S. Fuel Economy Unchanged, Buyers Still Like Trucks

U.S. Fuel Economy Unchanged, Buyers Still Like Trucks

EPA fuel economy ratings for individual models are posted on price stickers

America’s passenger vehicle fleet, still top-heavy with light trucks and large sport utility vehicles, turned in an average fuel economy of 20.2 miles per gallon for 2007 models, unimproved from 2006, according to a new report by the federal Environmental Protection Agency.

That the numbers didn’t change despite soaring fuel prices and a nationwide push for greater fuel economy to help reduce our dependence on imported oil reflects both the slow pace at which automakers can adopt improved technologies and the reluctance of U.S. car buyers to give up the kinds of vehicles they’ve been buying for years. “Manufacturers set their production plans several years in advance, and there’s not much they can to make quick adjustments to improve fuel economy for their vehicles,” said Edmunds.com senior industry analyst Jesse Toprak.  “But I’d expect improvements going forward, in 2008 models and beyond. They have to do it just to meet the goals” being set by regulators and Congress.

But consumers can change their buying habits quickly, and so far this year they haven’t, Toprak said.

The unchanged fuel economy numbers mean that “despite high fuel prices, people are still chosing from the same types of cars and trucks the bought last time,” he said.

One big reason: “The manufacturers saw that rising fuel prices would weaken the market for vehicles with poor gas mileage, so they proactively put higher-than-normal incentives on them” Toprak said.

Edmunds.com’s September incentives report, due to be posted Tuesday, will show that full-size pickups and large SUVs carried almost $4,000 in incentives for the month.

Although the industrywide fuel economy average didn’t change for the ’07 models, it was up 4.6 percent  from 19.3 mpg in the 2004 model year, when sales of trucks and SUVs peaked.  The average for 2005 models was 19.9 mpg.

And—no surprise here as InsideLine reported the numbers late last week—Japanese automakers Honda Motor Co. and Toyota Motor Corp. led the industry, with ’07 model year fuel economy of 22.9 mpg for Honda and 22.8 mpg for Toyota.

Honda, which has been increasing its truck portfolio, actually posted a slight decrease from 23 mpg for its’06 model lineup, while Toyota’s fuel economy--helped by robust sales of its 46 mpg Prius hybrid-- rose from 22.4 mpg in ’06.

South Korea’s Hyundai Group, which includes Kia cars and SUVs, was third overall with 2007 model year fuel economy of 22.7 mpg, up from 22.3 mpg a year earlier.

General Motors corp. led the U.S. auto makers at 19.4 miles per gallon, down from 19.7mpg. Ford Motor Co. was second with 18.7 mpg, a slight dip from 18.8 mpg.. And Chrysler stayed in 3rd place at 18.3 mpg, unchanged from its 2006 model year.

Japan’s Nissan Motor Co. posted the industry’s biggest gain, up 3 percent to 20.6 mpg from 20 mpg for its 2006 lineup.

Overall, the report found, passenger cars averaged 23.4 mpg in 2007 and pickups averaged 16.2 mpg— both figures unchanged from 2006. SUVs, a class that includes many of the car-based crossover models that are lighter more fuel efficient than truck-based models,  averaged 18.1 mpg, an increase of 0.3 mpg,

John O'Dell:  is an AutoObserver Senior Editor. Follow @AutoObserver on Twitter.