Auto dealers warn fuel efficiency proposal will price out millions of buyers

Judson Berger

American auto dealers are pushing back on proposed fuel economy rules that, they claim, would price out millions of buyers from the new-car market, potentially jeopardizing the environmental benefits of the program and the resurgent auto industry itself.

Throughout the Obama administration’s campaign to jack up fuel efficiency, officials claimed that for consumers, the upgrades would pay for themselves. Sure, buyers would pay more for a new vehicle off the lot, but they’d make up that cost in fuel savings in just a few years…

…The NADA estimates that by 2025, 6.8 million drivers will no longer qualify for a new-car loan if the proposed fuel efficiency standards go into effect.

The objections were filed Monday as the federal government closed its comment period for the proposed regulations. The next step is to review the comments and finalize the rule. The government already mandated an average fuel economy of 35.5 miles per gallon by 2016.

The latest proposal would mandate a 54.5 miles-per-gallon standard by 2025…

The complete article is at

Also, Obama EPA Fuel Efficiency Standard Will Eliminate Half of U.S. New Car Buyers

…The Obama administration “sold” the idea to the unwitting public, by saying the increase in price would pay for itself by fuel cost savings over four years.  However, as Wood points out, if the customer can’t afford the new, fuel-efficient vehicle in the first place–the reduction in fuel consumption and lowered emissions is an academic non-starter.

Instead, they will go to the relatively “gas-guzzling” used car market to make their purchase, while seriously damaging Detroit by being priced out of the new car showrooms.

And in a January statement from Mitch Bainwol, head of the Alliance of Automobile Manufacturers, carmakers are in lock-step with dealers, saying … [the] “ultimate question” is whether consumers will buy these new cars.

Otherwise its’ “game over.”

In following their instincts for self-preservation, auto dealers are hoping to convince the administration to delay the process, until the impact on consumers can be further studied.

Just like Obama mandated additional time for review of the Keystone Pipeline deal.


Do you really think President Obama will risk derailing his environmental extremist voter base, in an election year–just to save the country from mass destruction?

Update: From Instapundit


Comments are closed.