Friday, May 9, 2008

Money & Business

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Miles Per Foot

A new way to size up SUV gas mileage

By Richard J. Newman
Posted 9/4/05

The Chevy Suburban is a poster child for gas-guzzling SUV s, averaging just 16 miles per gallon. But the 18-foot-long vehicle can hold up to nine people, tow a motorboat, and do a lot of other things that petite utilities like the Toyota RAV4 or the Honda CR-V can't. In some measure, it should get lower mileage, since it does more.

Up till now, the government has required all SUV s and other light trucks produced by each manufacturer to hit a single fuel efficiency target--currently 21 miles per gallon--when averaged together. But controversial new rules proposed in August would break down light trucks into six mileage "bins" based on size, essentially allowing larger vehicles a bigger appetite for fuel. The smallest SUV s, like the RAV4, would have to meet the highest mileage standards. The biggest would get a more generous target. Each vehicle's size, or "footprint," would be calculated by multiplying the car's length from axle to axle by the width from tire to tire.

Environmental groups have complained that the new rules will dilute incentives for manufacturers to build more efficient vehicles, a plea that may land on open ears with gas prices suddenly surging past $3 per gallon, possibly on the way to $4. And the standards will be hotly debated, and perhaps changed, before going into effect. But with gasoline prices on the verge of doubling, the six size categories also provide a new framework for measuring how thrifty various SUV s are--based on their size and capability, not just the raw mileage they get.

U.S. News has used the new categories to develop an SUV Sensibility Index: a list of which SUV s get the best and worst mileage relative to how big they are. We started with a database of information on SUV s from Kelley Blue Book, the car-research firm. We then calculated each SUV's footprint and determined which of the six bins it belongs in. Then we compared each SUV's average mileage today to the target it will have to meet in model year 2008--the first year the new mileage rules would go into effect.

Moving target. Besides hybrids, few models come close to meeting the looming targets. "A lot of car companies have a lot of work to do," says Jack Nerad, editorial director at Kelley. The median entry on our list misses the target by 24 percent. Popular models like the Dodge Durango and Kia Sorento miss by more than 30 percent. And contrary to public perception, there are more domestic models than imports among the top 10 performers. As for the hulking Suburban, it lands in the middle of the pack when its fuel economy is measured against its size--even though a fill-up costs about $80.

Consumers' first reaction to the spike in gas prices, not surprisingly, is to consider thriftier vehicles. A survey by CNW Marketing Research in Bandon, Ore., for instance, found that in August, car shoppers listed fuel efficiency as a higher priority than horsepower by the highest margin ever. But as our data suggest, Americans also understand the trade-offs they make for big SUV s--and often feel they're getting their money's worth. "The typical American is not buying a lot more car than he really needs," says Nerad. He points out that large SUV s are usually carrying three or four people, a dog, and lots of stuff, whereas a high-mileage Toyota Prius hybrid, for example, is more of a commuting car for one.

Some fine print on our findings: We used 2006 model year data where available but in some cases had to rely on 2005 data. And for each model, we considered only the trim line that's most popular, as determined by Kelley Blue Book. You can see our complete SUV Sensibility Index at www.usnews.com/auto.

SUV Sensibility Index

It's not just how many miles they get per gallon; it's how well they do with a tank of gas based on their footprint. Here are the most frugal--and the most overindulgent--of SUVs.

THE SIPPERS

Ford Escape Hybrid

Mercury Mariner Hybrid

Lexus RX 400h

Toyota Highlander Hybrid

Nissan Murano

Chevrolet Equinox

Ford Freestyle

Honda CR-V

Buick Rendezvous

Pontiac Torrent

THE GUZZLERS

Mercedes-Benz G500

Land Rover Range Rover

Jeep Wrangler

Mitsubishi Montero

Lexus LX 470

Toyota Land Cruiser

Kia Sorento

Jeep Commander

Dodge Durango

Lincoln Navigator

This story appears in the September 12, 2005 print edition of U.S. News & World Report.

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