NEW YORK -

Though there has been much discussion regarding whether new national gas-mileage and emissions standards will help or hurt the automotive industry, a new report contends that automakers are set to make “billions more dollars in profits.”

According to the report titled  "Fuel Economy Focus: Perspectives on 2020 Industry Implications, " from the Ceres organization and Citi Investment Research and Analysis, American automakers are set to enjoy an increase in profits as high as 6.3 percent, generating an extra $2.44 billion dollars in 2020 under the proposed new standards.

Their findings also suggest that the industry as a whole could potentially see big profits as well, earning 5.3 percent more — or, in other words, an additional  $4.76 billion — in 2020.

And what is the two organizations’ reasoning behind these assertions?

The report explains that due to the new emission standards set to go into effect in 2020, “sales would increase because with increased fuel economy the overall cost of operating a car will go down and, consequently, consumers will have more spending power to buy more vehicles or more expensive vehicles.”

Commenting on these assertions and the report that evaluates the impact that meeting the proposed fuel economy/GHG standards would have on the car industry in the year 2020, Carol Lee Rawn, transportation director of Ceres — which leads a national coalition of investors and public interest groups working with companies to address global sustainability challenges — said, "Automakers who invest in more efficient vehicles are investing wisely. Given the volatility of gas prices —  and the likelihood that they’ll head through the roof again —  it’s clear that customers want better fuel economy and delivering it means a better bottom line for the industry.”

And though the report found that meeting the proposed standards will likely jumpstart vehicle sales for the industry as a whole, potentially contributing to a rise of about 4 percent of 600,000 vehicles, the Big 3 are likely to reap the most benefits.

“As a group Ford, Chrysler and GM would also likely see an improvement over baseline vehicle sales by about four percent or 300,000 vehicles,” officials noted.

But foreign automakers are likely to enjoy an increase, as well.

The companies assert that foreign OEMs could potentially see a 3-percent uptick in sales, which translates into about 300,000 vehicles.

Commenting on these numbers, Walter McManus, from the school of business administration at Oakland University, who conducted the sales and profits analysis, noted, "Although the automotive industry as a whole will benefit by meeting the new standards, the Detroit Three will enjoy the highest relative profits boost.

"The reason we see these increased benefits for American automakers is because compared to foreign automakers they are currently more heavily invested in lower mileage trucks and cars. Under these standards the Detroit Three would have a greater potential to add customer value to those vehicles with improved fuel economy,” he continued.

And as many industry experts have expressed concern about the need for new technology and how the cost of development will affect the price of new cars, the report touched on this topic as well.

According to the report, the new standards could largely be met by using existing technologies that improve the performance of cars powered by traditional internal combustion engines.

Further explaining this claim, Alan Baum, founder of Baum and Associates, who conducted the sector analysis, said, "Automakers today are already working on the improvements to the internal combustion engine and overall vehicle design to get us to 54.5 mpg. Turbocharged direct injection, advanced transmissions, electric power steering, low-rolling-resistance tires, turbo charging, variable valve lift and timing are available now and they continue to improve.

"These technologies are not only cost-effective, but also make for better performing vehicles than those currently on the market,” he added.

The report even claims that “the added technologies required to meet the proposed fuel economy improvements are cost-effective for consumers,” stressing that rising gas prices increase the need for new, more fuel-efficient technological improvements.

"Even if gasoline prices dropped to as low as $1.50 per gallon in 2020, money saved during vehicle use would fully offset the cost of added fuel economy technology," said Dan Meszler of Meszler Engineering Services, who conducted the cost analysis.

"Since gasoline prices are over twice that right now, it’s likely that consumer savings on fuel purchases will far outweigh the additional money consumers will spend on a new car,” he concluded.