Last July, The Obama administration revealed a proposal to raise the Corporate Average Fuel Economy (CAFE) standard to 54.5 mpg by 2025. Initial government-study figures claimed the move would increase the sticker price of the average new vehicle by around $2,000.
However, Don Chalmers, chairman of National Auto Dealers Association (NADA) government-relations committee, announced in a Detroit hearing for the proposal that the move to increase the fuel-economy standards would force manufacturers to use expensive "fuel-saving technologies," thereby increasing the price by a whopping $5,000 for 2025 models.
The NADA position is that an extra $5,000 would put many potential buyers out of the new-car market because it could add another $60 to $70 to a monthly car payment and hurt a customer's chance to obtain financing.
Want to continue reading?
Become a Free PropertyCasualty360 Digital Reader
Your access to unlimited PropertyCasualty360 content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking insurance news and analysis, on-site and via our newsletters and custom alerts
- Weekly Insurance Speak podcast featuring exclusive interviews with industry leaders
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical converage of the employee benefits and financial advisory markets on our other ALM sites, BenefitsPRO and ThinkAdvisor
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
