A new proposal may mean hardship for automakers and buyers. The Obama administration is weighing the possibility of making it a requirement that cars, and even lightweight trucks, average 56.2 miles per gallon as of 2025.
The initial proposal was a requirement for an efficiency increase of 5 percent over eight years. If automakers are forced to do so, this could mean a price increase of over $2,000 per vehicle for consumers.
Although the they were all consulted on the matter, General Motors Co., Ford Motor Co, and Chrysler Group LLC, none are expressing much support for it. Foreign automakers will have the same type of meetings, as well, to be briefed on the legal matters. The Administration is continuing efforts to get the support of the automakers, and has also met with UAW.
Apart from the in initial cost increase to the consumer, the efficiency will pay for itself over approximately 3 years, and eventually save up to $7,000 over the lifetime of the car.
The proposal is already receiving support from many sides, including Environmentalists, whom are pushing for even tighter regulations, and former Republican EPA administrators have brought this up as well.
Among those seemingly against the proposal are Detroit’s big three, as previously mentioned, Toyota Motor Corp, and eight more automakers, have all expressed concerns about the strong potential of excessive job loss. Advertisements protesting the epa standards.
Many lawmakers were under the impression that the proposal would be lower than the mentioned 56.2-mpg requirement, and that it was only in the meetings that they learned of any difference.
U.S. automakers are still expected to respond within the upcoming weeks. It is likely they will ask for time extensions, and flexible numbers and standards. Part of the proposal is that that a regulatory review be conducted around the mid-point of the agreement to maintain the attainability of the goal.
What is on the table now sounds more like a starting point than actual figures. I would guess that there is still much room to bend on the 56.2 mpg requirement. Readers, what side of this debate are you on? Are you willing to pay slightly higher premiums for a return over time? Do you think the time frame and mileage requirements are fair to the automotive industry?
– By: Alexandra Koken
Source: Detroit News