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Jane Richey / July 31, 2012

Car Industry Warns Against New Fuel Standards

The White House is expected to OK federal standards in the next few weeks that will nearly double vehicle gas mileage for vehicles by 2025, as automotive dealers warn the changes could slam the recovering retail car industry because they will come with sticker prices that will keep buyers off their lots.

The recommendations call for “fleet wide” gas mileage of 54.4 miles a gallon by 2025 — essentially the average gas mileage for cars, trucks, vans and all other vehicles in a model year.

The Environmental Protection Agency and National Highway Traffic Safety Administration submitted their proposed 2017-2025 fuel-efficiency recommendations in mid-July to the administration’s Office of Management and Budget.

“Dealers support fuel economy increases,” Bailey Wood, a National Automobile Dealers Association spokesman told FoxNews.com Saturday. “But if dealers cannot put vehicles on the road, we cannot reduce greenhouse gases or our dependence of foreign oil.”

He confirmed a final decision could be issued as early as August 15.

If approved, the changes are projected to save average American motorists roughly $8,200 at the pump over the life of their vehicles, but would also cost them as much as $3,000 more for a new vehicle.

One major concern is whether buyers will be able to get a loan, which critics of the proposal say would hurt Detroit automakers, including Chrysler and General Motors, who needed billions in taxpayer-funded bailouts during the recession to stave off bankruptcy.

Another concern is the Obama administration’s plan — which includes more hybrid and electric cars — will not achieve its goal of “getting gas-guzzlers off the road” because motorists will keep their existing cars or be forced to buy less-fuel-efficient used ones, Wood said.

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Filed Under: Constitutionally Limited Goverment, Free Markets Tagged With: auto industry, automotive dealers, EPA, fuel standards, gas mileage, National Automobile Dealers Association, National Highway Traffic Safety Administration

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