A trade group representing Detroit’s three automakers as well as Toyota is currently urging the Obama administration to say no to a proposal that could mandate a 62-mpg CAFE (Corporate Average Fuel Economy) industry standard by 2025.
The Alliance of Automobile Manufacturers, in a letter addressed to Transportation Secretary Ray LaHood and Environmental Protection Agency administrator Lisa Jackson, said, “fuel economy and greenhouse gas targets should not be arbitrary numbers, chosen before the necessary analyses are completed,” claiming that the proposed standard would “circumvent the rulemaking process and undermine the ongoing collaborative effort to set sound standards.”
In April 18 senators led by Democrat Dianne Feinstein and Republican Olympia Snowe, California and Maine respectively, urged the administration to consider a 62-mpg standard by 2025, which equates to a 6-percent annual increase from 2017 to then. Depending on how stringent the administration wants to make things, the increase could cost anywhere from $770 per vehicle built to $3,500.
The automakers believe that this requirement could reduce car sales by 14%, owing to the increase in cost per car to meet the requirements (that are then passed onto you, dear consumer). This could lead to an equal 14% reduction in jobs, or 250,000 people—automakers “depend on reasonable regulations that provide clarity and certainty, without pricing our customers out of the market or preventing them from choosing vehicles that can meet their diverse needs,” cites the Alliance.
Currently there is a 35-mpg CAFE standard set in lace for 2016.
[Source: The Detroit News]