Technology News - November 17, 2004

China drives worldwide markets

China’s stringent new automotive fuel economy standards could prevent the country from amassing an auto fleet with a significant percentage of sport utility vehicles (SUVs), according to a report by the World Resources Institute, a nonprofit think tank. China’s standards, the first of which will take effect in 2005, are intended to reduce the country’s dependence on imported oil. They are stricter than the U.S. Corporate Average Fuel Economy (CAFE) standards, particularly for SUVs, minivans, and other light trucks. Because China is widely expected to become the world’s largest market for automobiles within the next 20 years, the country’s decisions are watched closely. However, it is not yet clear how effectively China will enforce its new standards, especially in light of the current popularity of SUVs with Chinese consumers. Taking the High (Fuel Economy) Road includes an analysis of how well positioned the major automakers are to meet the new standards. The report can be found at http://pdf.wri.org/china_the_high_road.pdf.