

In light of the current pain at the pumps, fuel economy is on all of our minds these days no matter what kind of car you drive. That being the case, it might not be surprising to you that the car we're buying are getting more fuel efficient. Don't believe us? The National Highway Traffic Safety Administration has just revealed that the U.S. auto industry set a new record in overall fuel efficiency during the first half of the 2008 model year by averaging 26.8 mpg through March. That's up from an average of 26.6 mpg through the entire 2007 model year.
While this is certainly good news for both consumers and manufacturers that need to meet the government's mandated CAFE standards, the numbers used by the NHTSA aren't really representative of the real-world fuel mileage you should expect to achieve on the road. The testing standards were initially created in 1975 and automakers get certain credits for creating flex-fuel vehicles, which can artificially inflate their miles-per-gallon numbers. Additionally, automakers earn credits for surpassing the CAFE requirements and can carry these credits forward for up to three years. Still, the numbers are somewhat worthwhile when comparing the current model-year with those of the past. Expect to see the year-end numbers set another new record as consumers continue choosing smaller and more fuel efficient models over larger, gas-guzzling choices.

Since the Mazda3 hit the streets in 2004, it's proven to be a very strong contender in the small car segment. The compact sedan and hatch has been winning customers over with great styling, athletic ride characteristics, and equipment that typically isn't found in small cars. Its rich mix of standard features and options has helped keep transaction prices high, which will be very important as the self-proclaimed Zoom-Zoom automaker looks to downsize its lineup and make as much money as possible from every sale.
Mazda will now execute the Mazda3 strategy across its entire line to boost profits while giving customers the standard features they crave. For example, the all-new 2009 Mazda6 will be equipped with disc brakes at all four corners in every trim level while some of the competition continues to use rear drum brakes on their base models. Mazda has already proven that adding standard content can raise transaction prices while at the same time increasing sales, now the Ford-controlled automaker needs to prove that it can accomplish the same feat across its lineup. If Mazda makes all of its vehicles as competent as the Mazda3, that shouldn't be a problem.




Besides the introduction of the Dodge Challenger, there has been very little good news coming out of Chrysler lately. Sales are down 22% for the year due to a lineup that's still heavy on trucks and SUVs, but there may be some help on the way as soon as 2009. Chrysler CEO Bob Nardelli has hinted that a fuel efficient new vehicle(s) could debut next year, and platform sharing with other automakers would be behind the quick turn-around. Nardelli says the Auburn Hills-based automaker has re-prioritized its capital in an effort to quickly get to market the fuel-efficient vehicles that the market demands. Debuting even a single vehicle that's more fuel-efficient than anything else in the Chrysler lineup would likely have a big effect in light of the fact that its brands offer some of the least fuel-efficient lineups in the industry.
Nardelli didn't give any details as to which vehicle could arrive ahead of schedule, but speculation is that the Dodge Hornet is on the short list. The handsome Hornet (if it looks like the concept) will be based on the Nissan Versa small car platform, and was originally slated to arrive in Dodge guise in 2010. Chrysler is also rumored to be working on alliances with Tata, Fiat, and Chery, and each automaker has plenty of small, efficient vehicles at its disposal. None of those automakers has a presence in the U.S., though, so a quick turnaround on a platform that hasn't been properly crash tested doesn't seem likely.

If the Prius went mainstream when Toyota bumped production to 280,000 worldwide units per year in 2007, the fuel efficient hybrid is now primed to kick project green to the next level. When Toyota begins producing the next gen Prius, it'll do so with more factory space than ever dedicated to the universal symbol for fuel efficiency, making it possible to produce 480,000 vehicles per year. The Japan-based Tsutsumi factory, which currently builds five different vehicles, will stop making the JDM Wish minivan to allow for more Priuses. Even more Prius capacity will be available beginning in 2010, when the Japanese automaker's new Mississippi plant comes online and begins to produce more of the hybrid.
With the meteoric rise in gas prices, the Prius has gone from a yuppie green statement for politicians and suburbanites to a means for the masses to travel around town without breaking the bank. $4 per gallon gas and a continued lack of competition means Toyota could probably double production again and still sell every Prius it makes.

