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Obama administration hikes CAFE fuel economy standard to 54.5 mpg

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New electric cars will be critical to helping manufacturers cross the new bar by 2025

Between the Chevy Volt and the 2011 World Car of the Year Nissan Leaf, the United States has been making huge strides in increasing the average fuel economy of vehicles on the road. The Obama administration doesn't want the progress to stop there: After a year of negotiation, it finally reached a formal agreement with automakers and unions to raise the Corporate Average Fuel Economy (CAFE) to a minimum 54.5 mpg by 2025.

Currently, CAFE standards require automakers to average 35.5 mpg in the next four years, a target that's easily within reach. By raising the minimum fuel economy standards, car makers will be forced to push electric vehicles that dramatically raise a company's CAFE number. The United States will also be able to reduce OPEC oil imports by 50%.

[Image credit: Cable hanging down from fuel tank via Shutterstock]

This article was written by Fox Van Allen and originally appeared on Tecca

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