NADA: 54.5 MPG CAFE Proposal Could Tack Another $5,000 to New 2025 Model Prices
January 18, 2012 10:03 AM
comment(s) - last by
U.S. regulators say it isn't a big deal, since consumers will save on fuel over the vehicle's lifetime
A National Automobile Dealers Association (NADA) official said a new Corporate Average Fuel Economy (CAFE) proposal could add as much as $5,000 to the sticker price of a new vehicle.
The new CAFE proposal aims to increase the average fuel economy of cars and light trucks sold here in the U.S.
to 54.5 mpg by 2025
in an effort to reduce greenhouse gas emissions and lessen the country's dependency on foreign oil.
Don Chalmers, chairman of NADA's government relations committee, announced in a Detroit hearing for the proposal that nearly doubling today's fuel economy standards would force manufacturers to use expensive "fuel-saving technologies" that would bump up the sticker price of a new vehicle an extra $5,000. NADA is expected to release a study next month showing that the costs for the new higher fuel-economy standards will overshoot government estimates by over 60 percent (meaning an extra $5,000 to the sticker price for new 2025 models).
Chalmers argued that an extra $5,000 would put many potential buyers out of the new-car market because it could add another $60 to $70 to a monthly car payment and hurt a customer's chance to receive financing.
"I want to sell more fuel-efficient cars," said Chalmers. "If the customer can't get financing, it makes no difference."
U.S. regulators see the situation differently, though. Many believe the extra $5,000 wouldn't be an issue because customers save on fuel over the lifetime of the vehicle.
"We're hearing broad support," said Margo Oge, director of the Office of Transportation and Air Quality at the Environmental Protection Agency. "What we heard is that this standard will create green jobs. This is what the consumer wants. This is where the companies want to invest. So, overall, it's been very positive."
Other supporters for the
new CAFE proposal
by the Obama administration include 13 major automakers, such as Ford Motor Co., General Motors, and Chrysler; United Auto Workers (UAW), and environmental groups like the National Wildlife Federation.
"These proposed rules will reduce the pollution that contributes to climate change, significantly reduce America's dependence on foreign oil and save American families money at the pump," said Bob King, UAW President, who added that the proposal could save customers around $4,000 over the life of the vehicle. "They will also create jobs in the auto industry and throughout the economy."
"This proposal provides our industry both a single program moving forward, as well as regulatory framework that enables manufacturers to plan and invest for the future with confidence," said Sue Cischke,
Ford Motor Co.'s
vice president of sustainability, environment and safety engineering. "We are committed to working with you to finalize these regulations. The standards proposed are aggressive, but so are the demands from our customers for greater fuel efficiency."
Others, such as Volkswagen AG and Daimler AG, are on Chalmers' side with opposing the new CAFE proposal. They say the new proposal offers "no new incentive for diesel cars."
The hearing for the proposal was one of three that will be held to give the public a chance to comment. The other two are scheduled for January 19 in Philadelphia and January 24 in San Francisco.
This article is over a month old, voting and posting comments is disabled
RE: Do they seriously think we'll still be running gas cars in 2025?
Dr of crap
Dr of crap
1/18/2012 12:14:05 PM
It ALL in how you take care of it.
And with the newer cars, from 1995 and on, these cars require so little to kkep them going they should last 15 years and 300,000 miles no problem.
It's not doing the maintanence and repairs on time that kills cars and makes them run bad!
"I modded down, down, down, and the flames went higher." -- Sven Olsen
Ford's 2013 Fusion Hybrid Clobbers the Competition, Delivers 47 MPG City/44 MPG Highway
January 8, 2012, 11:34 PM
Study Claims CAFE Loopholes Will Make Vehicles Larger, Not Smaller
December 14, 2011, 12:46 PM
UPDATED: Fed's Proposed 54.5 MPG CAFE Requirements for 2017-2025 Released
November 16, 2011, 4:30 PM
Report: Vehicle-to-Vehicle Communications Could Make New Cars, Trucks Costly
March 13, 2014, 7:19 PM
BMW: Demand for i8 Hybrid Sports Car Outpaces Production
March 13, 2014, 10:08 AM
Toyota's Takeshi Uchiyamada Says Hybrids Will Soon Have 20% Global Share
March 13, 2014, 9:24 AM
Tesla Loses Out in New Jersey's Vote for Direct Auto Sales Ban
March 12, 2014, 12:44 PM
Bids Sought to Build New Presidential Limo
March 12, 2014, 10:21 AM
Audi Traffic Light Recognition System Hopes to Save Fuel
March 11, 2014, 9:54 AM
Most Popular Articles
Bitcoin King Pt. II: Mt. Gox's Dictator Karpelès Proves Tragically Flawed
March 7, 2014, 1:12 PM
Windows 8.1 Update 1 Leaked Early
March 7, 2014, 9:30 AM
Hack Reveals Fallen Bitcoin CEO's Posh Tokyo Penthouse
March 10, 2014, 4:28 PM
Staples Closing 225 Stores Across North America
March 7, 2014, 1:24 PM
Vine Users No Longer Allowed to Post Pornographic Videos
March 7, 2014, 1:47 PM
Latest Blog Posts
Tesla vs. BMW: Who Has the Safer EV?
Feb 1, 2014, 2:56 PM
Justice Leaks Details of Next HTC One Two Flagship Phone
Dec 5, 2013, 4:04 PM
Global Cyber Espionage Concerns Reveal Growing Cyber Armies
Nov 29, 2013, 11:04 AM
Is The Period Becoming an Expression of Anger?
Nov 26, 2013, 2:02 PM
NSA and Congress -- You Will Never Kill the Constitution, It's an Idea
Nov 10, 2013, 2:00 PM
More Blog Posts
Copyright 2014 DailyTech LLC. -
Terms, Conditions & Privacy Information