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EPA Standards Could Increase Auto Costs Considerably

NADA concerned over Federal MPG standards
(Photo by Bryan Mitchell/Getty Images)

The government’s new EPA-fuel economy rules could cause havoc with new vehicle purchases, says the NADA.

The NADA, or National Automobile Dealers Association, says the new fuel economy standards that are slated to go into effect from the Federal Government for Model Years 2017-2025 (often referred to as MY 2017-2025) have set rather ambitious goals for milage for cars and light duty trucks-your F-150 or Dodge 2500 or Chevy Silverado.  By the year 2025, the Feds expect the “average” vehicle in this range to have a fuel milage of 54.5 miles per gallon!    NADA has petitioned the government to re-evaluate the milage, as well as push back the timeline for the following reasons:

*The EPA has grossly underestimated the consumer cost that will be added to the price of the vehicle in order to implement the technology needed on the vehicles due to fuel economy mandates.  The EPA has said it would add about $3,000,  NADA says that actual figure is closer to $5,000 or higher the closer we get to 2025…especially for trucks.

*By underestimating the consumer add-on costs,  the EPA does not realize that the price of a new vehicle will be driven out of range for millions of consumers,  and actually drive down the sale of more fuel efficient vehicles.

*Because of the drive up in prices, consumers will be more likely to either retain their current vehicle much longer, or seek out previously owned vehicles instead.   —from the NADA press release:

The federal proposal goes too far, too soon and too fast. It consistently underestimates the actual cost to car buyers and how they will react to the proposed MY17-25 fuel economy mandates.

“Dealers support increased fuel economy standards as long as the improvements leverage, not fight, consumer demand. NADA urges the administration to put these rules on hold until there is a better understanding of how consumers in 2025 will react to these price increases and technology changes.”

  In layman’s terms, NADA fears consume reaction to these new vehicles will mirror that of the overall public reaction to the recent slew of ‘electric’ cars that have hit the market,  namely the Nissan Leaf, and the Chevrolet Volt.   While consumers are buying the cars,  the sales have fallen FAR below corporate and Government projections–especially for the Volt.  It has been plagued by test crash battery fires, then the news that when Fox News test drove one for several days,  the battery not only ran out while the car was in the Lincoln Tunnel, but delivered only about half the charge life it was supposed to.

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