American car dealers have called for an easing of US federal regulations on fuel efficiency at their annual national convention being held in New Orleans.
The Obama administration enacted rules requiring automakers to double the average fuel efficiency of their car and truck fleets to 54.5 miles per gallon by 2025.
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
Reuters reported that Mark Scarpelli, the National Automobile Dealers Association’s (NADA) new chairman and owner of General Motors Co dealerships in northern Illinois, said the technology needed to improve fuel efficiency can add USD1,500 to USD3,000 to a vehicle’s price.
“You inflate the price of the vehicle and a car that was maybe within reach of being affordable now may not be,” Scarpelli said.
Reuters reported that he added that a different phase-in period for the rules could be a better option.
Delegates also said that the government has been trying to force manufacturers to make cars that consumers don’t want.
Reuters reported that Ford CEO Mark Fields told the NADA convention that he and other auto CEOs warned President Trump that up to a million jobs are put at risk if automakers are not given ‘flexibility’ to ‘align with market realities’.
There has been speculation that the Trump administration will ease fuel economy targets to assist the Detroit Three. Reuters noted that Oklahoma Attorney General Scott Pruitt, Trump’s choice to lead the EPA, has said he will review the Obama administration’s decision to lock in the fuel efficiency rules.
