White House ‘Advanced Vehicles Summit’ Should Also Address Consumer Concerns and Affordability
WASHINGTON, June 27, 2012 /PRNewswire-USNewswire/ — On the day of the White House’s discussion with automakers, environmentalists and government officials, the National Automobile Dealers Association (NADA) welcomed the Obama administration’s continuing review of the proposed Model Year (MY) 2017-2025 fuel economy rules.
The issues below should be raised during the White House’s “Advanced Vehicles, Driving Growth” summit:
- Are consumers able and willing to pay almost $3,000 [Obama administration estimate] more on average per vehicle in 2025 to get better fuel economy?
The cumulative average per vehicle cost of the MY 11, MY 12-16, and MY 17-25 fuel economy rules approaches $3,000 per vehicle. (MY 11: 74 Fed. Reg. 14413- $95; MY 12-16: 75 Fed. Reg. 25635- $945; MY 17-25: 76 Fed. Reg. 74889- $1,896 – all prices adjusted to 2010 dollars)
- Will new graduates and working families still be able to buy a new car or truck?
Vehicles that currently cost $15,000 and less could be regulated out of existence. (U.S. Energy Information Administration, “Annual Energy Outlook 2011,” pg. 27)
- With upwards of 90 percent of new vehicles financed in some way (auto loans and leases), how many fewer working families will still qualify for a loan in 2025?
NADA’s research shows that 6.8 million Americans could no longer qualify for financing to purchase the most affordable new vehicles should prices escalate an additional $3,000. Click here for the study.
- Will there be broad consumer acceptance of hybrid and electric vehicles?
Hybrid sales have never been more than 3 percent of sales in any given year. For automakers to comply with the MY17-25 mandates, 15 percent of the vehicles sold must be hybrids or electrics. (76 Fed. Reg. 74860)
- When will families achieve the ‘$8,200 in fuel savings over the lifetime of a new vehicle’ that is promised?
To achieve $8,200 in fuel savings, the EPA estimates that a consumer will have to drive the vehicle for 211,000 miles during its life. (Environmental Protection Agency, Draft Technical Service Document, pg. 4-17, Nov. 2011)
NADA Legislative Affairs
(202) 557-1674 (m)
Director of Public Relations
NADA Public Affairs
(216) 870-8837 (m)
SOURCE National Automobile Dealers Association