A manufacturing alliance between General Motors (GM) and Ford, expected to be unveiled next month, will have the two rival companies developing automatic transmissions designed to improve fuel economy. The alliance could save the companies billions of dollars as they work towards meeting demanding federal fuel economy regulations set for 2017.

GM and Ford have already successfully worked together building six speed automatic front wheel drive transmissions in 2002, introduced in 2006 in approximately thirty different models. Both companies are currently developing 8, 9, and 10 speed transmissions for front and rear wheel drive cars and light trucks and they hope that the agreement will not only speed up technological developments, but will allow them to reduce manufacturing costs.

Packing more gears into the compact transmission housings used in smaller vehicles is an increasingly tricky challenge, according to engineers. Automatic transmissions with more gear ratios and more sophisticated electronic controls are crucial to improving fuel economy but the limited space of compact and subcompact cars makes it difficult. The lack of space is one reason that subcompacts like the Ford Fiesta and Chevrolet Sonic do not achieve higher fuel efficiency than the larger Ford Focus and Chevy Cruze. Longer vehicles also have lower aerodynamic drag, which helps overall efficiency.

Developing transmissions in house will not only allow GM and Ford to tailor the components to suit their needs, but will eliminate royalty costs for licenses and intellectual property rights charged by their current gearbox suppliers. The new transmissions are expected to reach the market by 2015.

With fuel prices on the rise, more Americans are turning to electric and hybrid vehicles for the promise of saving money. Today’s consumer is offered a wider selection of vehicles, advertising better fuel economy with super fuel saving technologies. Even the government has jumped on the bandwagon with significant changes to fuel economy window stickers that estimate what a drivers annual fuel costs and savings will be. But, once the consumer starts looking into buying one of these vehicles, the promise of saving money is not always apparent.

According to recent studies, even if gas prices would climb to $5 a gallon, it would take the average hybrid or electric vehicle, six years before the consumer would start to see any savings. Analysts say that the price of these new technologies is a road block that limits the appeal of fuel efficient cars and trucks. The proof in in the numbers, with hybrid and electric car sales accounting for less than three percent of the total market.

So why do consumers pay more for these advanced technologies that promise to save them money? Many are blinded by advertising, but never actually sit down to do the math, or they overestimate the miles per gallon savings compared to actual savings. Some see the better fuel economy as better for resale, and hope to make up the difference when they sell their vehicle. Others just want to do something for the environment. Regardless of what the reason is, every day that gas prices increase, electric or hybrid automobile owners can feel better about the purchase they made.

Ford and Google are working together to develop a tool that will help make Ford’s hybrid vehicles even more efficient. The Application Program Interface (API), also known as Google Predictions, will analyze driver habits using cloud based computing, in order to come up with customized strategies for saving energy. The driver would input their destination and the car would use its stored traffic information to determine the best route. The API would adapt to the drivers driving habits allowing the best fuel efficiency for the driver. The technology is still in a research phase, but Ford hopes to have a working prototype ready for production in four to eight years.

In April of 2010, when the Department of Transportation (DOT) and the Environmental Protection Agency (EPA) came out with their national greenhouse gas emission standards, there were concerns about how the new requirements would be received. It was expected that automobile manufacturers would turn to more efficient conventional technologies, while others would go one step further and pursue more advanced fuel saving technologies like diesel, hybrid and electric vehicles. Today, with gasoline prices on a steady rise, Americans are demanding that their new cars not only meet, but exceed the standards set by the government. Because some consumers are still skeptical of the new hybrid and electric technologies, many have chosen to trade in their V-6’s for more fuel efficient four cylinder engines.

Four cylinder engines now account for almost 65% of all vehicles built in the U.S., Canada and Mexico. This is the biggest shift since the 1980’s when consumers traded in their V-8’s for the smaller V-6 engines. It is expected that within the next five years, over half the vehicles in the U.S. will be four cylinder engines. But todays consumers don’t have to give up power to drive the smaller engine vehicles. New technologies have left the underpowered four cylinder engines a thing of the past, and automakers have changed their marketing strategies to focus on the horsepower and fuel economy instead of the number of cylinders a vehicle has.

Ford new generation Explorer will soon offer two liter four cylinder “Eco Boost” engine and are already working on a 1.0-liter, three-cylinder engine.

BMW, who has not built a four cylinder engine in the U.S. for over a decade is now offering their customers the new Z4 sports car scheduled to go on sale this year, and have also been working on a three cylinder engine.

Hyundai has almost abandoned anything bigger than a four-cylinder, which accounts for nearly 90% of its U.S. sales.

And finally, automobile manufacturers like Honda, Toyota and Nissan, who were once criticized for their small powerless vehicles, are now leaders in the new fuel efficient, environmentally friendly technologies.


The Environmental Protection Agency (EPA) and the Department of Transportation (DOT) unveiled their new fuel economy window stickers on Wednesday, saying that the new stickers will show the most changes in thirty years. The new labels will allow consumers to compare conventional cars, hybrids and all electric vehicles, giving information on greenhouse gas ratings, emissions, smog ratings, and fuel costs. The new stickers are scheduled to appear on the new 2013 models, but automakers have the option to start using them on on 2012 models as well.

Federal regulators had originally considered using a letter grading system from A to D, comparing fuel economy and air pollution to those of the entire fleet of new cars, but automakers objected, saying that the stickers were too simplistic and potentially misleading to automobile consumer’s. The government instead decided to go with a much busier label with more information and a sliding scale comparing vehicles across classes. According to transportation secretary, Ray LaHood, “These labels will provide consumers with up-front information about a vehicle’s fuel costs and savings so that they can make informed decisions when purchasing a new car.”

The label will also include a Quick Response Code (QR Code) that can be scanned by a smart phone to get information on cost estimates based on a consumer’s driving habits and the price of gasoline and electricity of their area. This information will also be accessible to vehicle shoppers online.

The U.S. Department of Transportation (DOT) and the U.S. Environmental Protection Agency (EPA) have come out with their long awaited national greenhouse gas emissions standards. These standard are expected to significantly increase the fuel economy of all new passenger cars and trucks sold in the United States.

Starting with 2012 models, automakers are required to improve fuel economy and reduce greenhouse gas emissions by approximately five percent every year until the established fuel economy standards are met. NHTSA and EPA expect automobile manufacturers will meet these standards by more widespread adoption of conventional technologies that are already in commercial use, such as more efficient engines, transmissions, tires, aerodynamics, and materials, as well as improvements in air conditioning systems.

The new program is expected to:

  • Reduces carbon dioxide emissions by about 960 million metric tons over the lifetime of the vehicles regulated, equivalent to taking 50 million cars and light trucks off the road in 2030.
  • Conserves about 1.8 billion barrels of oil over the lifetime of the vehicles regulated.
  • Enables the average car buyer of a 2016 model year vehicle to enjoy a net savings of $3,000 over the lifetime of the vehicle, as upfront technology costs are offset by lower fuel costs.

Although the standards can be met with conventional technologies, EPA and NHTSA also expect that some manufacturers may choose to pursue more advanced fuel-saving technologies like clean diesel engines, hybrid electric vehicles, and electric vehicles.

Here are some suggestions for improving fuel economy on your vehicle. Please try to avoid accelerating or braking too hard. Please try and keep your steering smooth. Try and maintain consistent speed and avoid high speeds. Please service your vehicle on a regular basis according to your warranty. Always use the recommended grade of motor oil.

Having problems with your vehicle’s fuel system and think your vehicle might be a lemon? Call Delsack and Associates, a California Lemon Law Firm, at 888-396-3666 (888-Ex-Lemon) for a Free consultation.

President Obama has signed into law the Car Allowance Rebate System (CARS) aimed and getting rid of older gas guzzling vehicles by giving consumers $3,500 or $4,500 towards the purchase of a new truck or car. The amount of the credit depends on the fuel efficiency rating of the vehicle being purchased. (See: cars.gov to get the EPA’s fuel efficiency ratings.)

A similar program has been highly successful in Europe where hundreds of thousands of car owners have traded in old vehicles under similar government subsidies. In Germany, for example, car sales are up by about 40% over a year ago. The German program is, however, more liberal than its American counterpart. Germany initially provided €1.5 billion to get 600,000 old cars traded in. The program has turned out to be so popular that the German government has now raised that budget to €5 billion to provide for 2 million cars and has extended the deadline to the end of 2009. Although the requirements under the dozen European programs vary from country to country, they generally require only that the vehicle being traded in is old. Germany requires only that the vehicle be at least nine years old and sets no limits on the kind of new car regardless of size and fuel efficiency.

The American program, on the other hand, is more narrow. The vehicle can be no more than 25 years old and have a combined city and highway fuel economy rating of no more than 18 miles per gallon as determined by the EPA. (See fueleconomy.gov). Further, the vehicle to be traded in must be drivable, be insured, and have been registered to the same person for at least one year, so us prevent shoppers from buying an older car solely for the purpose of getting the higher discount. Additionally, the credit cannot be applied towards the purchase of a used vehicle nor to vehicles that cost more than $45,000.

Consumers will get either at a $3,500 or $4,500 credit. To get the $4,500 credit it must be for a new truck or SUV rated at least 5 miles per gallon better than the scrapped vehicle, or a car rated at least 10 miles per gallon better than the scrapped vehicle. The credit will be given instead of the regular trade-in, not in addition to it, although it is possible that some dealers might add some trade-in allowance for the scrap value of the gold vehicle. To get the $3,500 credit the new car need only get at least 4 miles more per gallon than the traded vehicle, and new trucks need only be 2 miles per gallon better.