Auto Alliance Feels New CAFE Rules are Too Much ~ Hybrid Car Review
Hybrid Car Review: Auto Alliance Feels New CAFE Rules are Too Much

Thursday, July 03, 2008

Auto Alliance Feels New CAFE Rules are Too Much

In a 77 page commentary on the new CAFE rules that will go into affect in 2010, the Alliance of Automobile Manufacturers stated the National Highway Traffic Safety Administration is underestimating the cost to the manufacturers, who are already too stressed to take the impact.

The Alliance includes the big three auto manufacturers of Detroit Ford, GM, Chrysler, plus Toyota, BMW, Mazda, Mercedes-Benz, Mitsubishi, Porsche and Volkswagen.

In their comments, the Alliance states the new CAFE standards "goes beyond what is technologically feasible and economically practicable."..."It would require manufacturers to expend resources at a pace that is excessive given the fact that the auto industry is already under economic stress."

The NHTSA estimated the cost to new vehicles would average $821 per vehicle, but the Alliance estimates it will cost $2,063 per new car. That difference would reduce overall US sales, and would be more than consumers would save in fuel costs.

"Setting a low standard makes it far more difficult for the industry to meet higher future standards," the Consumer Federation of America said in a statement. "... If the rule stands as written, fuel economy standards will be hamstrung for years to come, providing neither the fuel economy consumers demand, nor the oil savings our nation needs."

BMW submitted their comments earlier, stating the new CAFE were not feasible, but have stated they also support the Alliance comments.

Sources: oilweek, autonews.

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