EPA's New Fuel Efficiency Ratings May Reduce Vehicle Models

"The Environmental Protection Agency will propose new methods of calculating and estimating gasoline mileage sometime next month, with a goal of putting them into place in time for next fall's 2007 model introductions."

"Officials at the EPA, which has used the current standards since 1985, agree that changes need to be made but warn that shifting to updated methods likely will mean a substantial lowering of fuel mileage estimates for many vehicles".

"...Companies will be forced to build smaller cars and move away from larger ones," said Jack Nerad, a Kelley Blue Book analyst. "Over the course of time, car companies have essentially subsidized their economy vehicles to make sure that their fleets meet what are known as CAFE standards, or Corporate Average Fuel Efficiency standards for their entire lineup", Nerad said. "They kind of artificially lowered the prices of... economy cars."

Thanks to Preston Schiller