HomeStock MarketAutomakers strongly oppose the US proposal to increase fuel efficiency rules, calling...

Automakers strongly oppose the US proposal to increase fuel efficiency rules, calling it impractical and burdensome.

Automakers Criticize Proposed Fuel Efficiency Rules

Automakers Express Concerns Over Biden Administration’s Proposal

A group representing major automakers including General Motors, Toyota, and Volkswagen has sharply criticized the Biden administration’s proposal to increase fuel efficiency requirements. The Alliance for Automotive Innovation argues that the proposed plan is unreasonable and calls for significant revisions.

Industry Group Highlights Potential Negative Impact on Consumers

The industry group argues that the plan would result in a $3,000 increase in average vehicle prices by 2032 due to penalties imposed on non-compliant automakers. They believe that this cost increase is excessive and would not provide any environmental or fuel savings benefits to consumers.

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Detroit Three Automakers Urge Revisions

The American Automotive Policy Council, representing the Detroit Three automakers, has separately called on the National Highway Traffic Safety Administration (NHTSA) to reduce the proposed fuel economy increases for trucks. They argue that the current proposal would disproportionately impact the truck fleet, as trucks make up a significant portion of their production.

Concerns Over Non-Compliance Penalties

The auto alliance has estimated that automakers would face over $14 billion in non-compliance penalties between 2027 and 2032. U.S. automakers such as GM, Stellantis, and Ford have warned that these fines would have a significant financial impact on their businesses.

Additional Concerns Raised

Automakers have also expressed alarm at the Energy Department’s proposal to revise how it calculates the fuel economy rating for electric vehicles in NHTSA’s program. They argue that this revision would devalue the fuel economy of electric vehicles by 72%. However, GM has stated that it could support NHTSA’s proposal if the Energy Department rescinded its petroleum-equivalent proposal.

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Subaru Highlights Insufficient Ramp-Up for Electric Vehicles

Subaru has raised concerns about the feasibility of the NHTSA proposal, particularly regarding the insufficient fleet ramp-up for electric vehicles. They believe that the current proposals do not adequately support the necessary levels of electric vehicle production.

Call for Feasible and Softened Rules

Automakers and the United Auto Workers union have previously expressed concerns about the feasibility of parallel rules proposed by the Environmental Protection Agency. They argue that these rules should be significantly softened to ensure practicality.

It is crucial for the Biden administration to consider the concerns raised by automakers and find a balanced approach that promotes fuel efficiency without imposing excessive costs on consumers or disproportionately impacting specific segments of the automotive industry.

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