Industry News: Dealers Want President Trump To Ease Fuel Economy Standards

[William Maley]

Since President Donald Trump was elected, automakers have been pushing for him to relax the stricter fuel economy and emission regulations coming into effect by 2025. Now there is another group calling for this.

At the National Automobile Dealers Association (NADA) annual conference, dealers voiced support for the new president ease the upcoming regulations. 

"You inflate the price of the vehicle and a car that was maybe within reach of being affordable now may not be," said NADA's new chairman, Mark Scarpelli to Reuters.

Scarpelli argues that the tech needed to improve fuel economy adds $1,500 to $3,000 to the price of a vehicle. He also says that a "different phase-in period" for the regulations would be welcomed.

The big argument dealers are using is the regulations would cause automakers to build vehicles that buyers aren't interested in.

"They've got to make regulation more in line with consumer demand so (the automakers) can build what people want and not what the government’s telling them they have to build," said Pete DeLongchamps, vice president of Group 1 Automotive Inc.

Source: Reuters

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[hyperv6]

I think they will get a break from the 2025 standard but the companies are not going to go back to building more V8 models etc. They need to meet the needs globally and California. I expect them just needed a break from the crazy standard we have hanging out there that just can not be met with present technology that anyone would be willing to pay for in large numbers. 

The EV needs to continue to improve to fill the gap on the Cafe. As of now it is still too expensive and limited in areas that the average buyer is willing to accept. 

Once a EV is to the point people do not have to change their routine or lifestyle then it is ready for prime time. 

[smk4565]

A delay to 2030 could help them.  By then I'd imagine electric will be in a lot of powertrains, whether full EV or plug in hybrid of some sort.  I see no reason to lower the CAFE number, but perhaps give them another 5 years to get there, and get cost down to where the market will buy these hybrids.

[G. David Felt]

52 minutes ago, smk4565 said:

A delay to 2030 could help them.  By then I'd imagine electric will be in a lot of powertrains, whether full EV or plug in hybrid of some sort.  I see no reason to lower the CAFE number, but perhaps give them another 5 years to get there, and get cost down to where the market will buy these hybrids.

I agree push it to 2030 and let them continue to drive the EV.

[smk4565]

Yeah, I wouldn't back off the 54 mpg CAFE number though and I'd make crossovers the same as cars.  People buy RAV4 as a replacement for a Camry, they should be treated the same with CAFE.  Something like a Transit or F150 I can see under a truck standard.

[ocnblu]

I would freeze emissions standards and drop fuel mileage requirements entirely.  Let people decide what to drive.

[regfootball]

regardless of whether engines are small and tiny or turbo or have ten speeds, the vehicle weight means as much to FE.  And we've done all we can for awhile in weight savings and tiny turbos.  I'd rather see some tax incentives to push more volt type vehicles in addition to leveling out the FE and emissions standards for awhile.  Maybe give some tax credits for continued FE improvements rather than mandates.

 

a 4000 pound sedan with a 7.5 second 0-60 in 2000 vs. 2016 probably ends up with the same real world FE anyways.

[daves87rs]

6 hours ago, ocnblu said:

I would freeze emissions standards and drop fuel mileage requirements entirely.  Let people decide what to drive.

I almost agree with this.....but we have quite far already-might be time to slow it down for a while.

There will still be improvements, but let's let the tech out there become a bit more common- and she how well it holds up long term.

 

I see plenty of turbo'd cars out there....but the engines require a bit more care than a regular one. I've seen quite a few abused Cruzes already, for example.....

[ocnblu]

Some of the people will demand fuel economy, some will demand power.  Everyone is different.  Everyone should have what they want.  Better for business.  Better for the U.S. economy as a whole.

[hyperv6]

Automakers are building for a global market. While we can pause the CAFE here companies will still have to continue to improve it. 

They need to just slow the time line down and make it fit the global plan more so we can help these automakers not have to make special cars for some countries. This is all they are asking for with the US movement. 

Really if you take Germany. USA and Japan and get them all to agree it will fix about 90% of the problems. 

[G. David Felt]

Do not forget that some large markets like India and China have such bad pollution problems that EV will be the future, Hybrids a stepping stone and auto makers will have to build as Hyperv6 states for the global market and not just the tiny US market anymore.

Days of the US dictates the market are over.