Last August, the U.S. government proposed a Corporate Average Fuel Economy (CAFE) target of 54.5 mpg to be met by carmakers by 2025. Despite initial reactions, the proposal eventually gained the manufacturers’ support. However, the administration has pushed back the official announcement on the new regulations.
The National Automobile Dealers Association (NADA), which represents some 16,000 dealers operating 32,500 franchises around the country, announced on Tuesday that the proposal would effectively make new cars too pricey for some consumers.
NADA says that if the suggested target goes through it will force manufacturers to adopt costly technologies in order to comply and reduce their vehicles’ consumption by an average of 5 percent annually.
According to Don Chalmers, chairman of the dealers’ association committee, a study that NADA will release next month shows that the proposed fuel consumption targets will increase new car costs 60 percent more than the government’s estimates. Chalmer claims that this will make a 2025 vehicle US$5,000 more expensive.
“I want to sell more fuel-efficient cars. If the customer can’t get financing, it makes no difference”, said Chalmers who added that the government’s projection, which calculates that the price increase will be around US$2,000, is too low.
The government already has the support of 13 manufacturers, as well as the UAW. The latter’s president Bob King said that claims about cars being more expensive overall are “inaccurate” and that those opposed to the proposal “should look at all the facts”.
King explained that, according to a 2011 Environmental Protection Agency (EPA) study, new car buyers will save around US$4,000 over their vehicles’ lives, including the higher sticker price they will have to pay in the first place, because of their better fuel economy.
Story References: Autonews
