Largest Jump in CAFE Standards in a Generation is a Driving Force for Economic Growth in Vehicle Manufacturing
AKRON, OH (September 4, 2012) At least 21,000 jobs will be created by 2030 in Ohio as a direct result of vehicle fuel economy standards finalized recently by the Obama administration, according to a new study released by the BlueGreen Alliance. Findings in the report, Gearing Up: Smart Standards Create Good Jobs Building Cleaner Cars, reveal 570,000 jobs would be created nationally from fuel savings and developing clean car technology, and 50,000 of these jobs would be created in light-duty vehicle manufacturing and assembly by 2030. This proposal for light-duty vehicles built between 2017- 2025 means fuel economy will reach an all-time high of 54.5 miles per gallon (mpg) and low for emissions of 163 grams of carbon dioxide per mile (g/mi).
The report and a state-specific fact sheet were highlighted at an event in Akron today at the USW Local 2L union hall.
“Americans are eager to spend less money filling up their gas tanks,” said Tracy Sabetta from the National Wildlife Federation. “In addition to reducing their financial burden at the pump, these significant fuel efficiency standards will drive economic growth while keeping our air cleaner and addressing climate change.”
America spends $1 billion a day on foreign oil. The BlueGreen Alliance estimates show that by 2030, these proposed standards will save drivers of passenger cars and light trucks approximately $61 billion dollars per year on their gasoline bill, even after accounting for the slightly higher purchase price of more fuel-efficient vehicles. By the time the proposed standards have fully taken effect in 2025, they will save consumers an estimated $4,000 dollars over the life of a vehicle.
“Increasing fuel efficiency and decreasing greenhouse gas emissions is putting people to work," said UAW Local 1714 President Dave Green. "For proof of that, look no further than the GM Lordstown plant.”
The report also explores the impact of increasing domestic content in vehicles.Findings show that if light-duty vehicle domestic content was increased from its current 60 percent to 75 percent in 2030, then an additional 4,100 U.S. manufacturing jobs would be created on top of the 50,000 already projected by the study, creating a ripple effect in other sectors of 9,000 more jobs.
“Building strong businesses and protecting the environment can go hand-in-hand,” said Senator Sherrod Brown. “The economic recovery still has a long way to go, but the American auto industry is back – with Ohio workers making stylish, affordable, and fuel-efficient cars that consumers want to buy.”
Besides creating over half a million jobs, there will be a net increase of about $75 billion in annual Gross Domestic Product (GDP) by 2030.
“More fuel efficient vehicles are already employing steelworkers in good-paying jobs across Ohio,” said United Steelworkers Local 2L President Jim Mason. “Initiatives like this are putting the U.S. auto industry and the economy back on track at the same time, creating good jobs and vehicles that are better for our environment.”
The BlueGreen Alliance is a national partnership of labor unions and environmental organizations dedicated to expanding the number and quality of jobs in the green economy. Launched in 2006, the strategic partnership now brings together major U.S. labor unions and America's most influential environmental organizations and unites more than 15 million members and supporters in pursuit of good jobs, a clean environment and a green economy. Visitwww.bluegreenalliance.org.