Expensive Fuel Economy Proposal Will Price More Than 7 Million Consumers Out of the New-car Market, NADA Says

Washington DC January 24, 2012, The National Association of Auto Dealers said today that more than 7 million Americans would no longer be able to afford to buy a new car or truck in 2025 if the most expensive fuel economy rule ever proposed goes into effect.

The comments were made by NADA director Forrest McConnell in testimony today at the final hearing on proposed fuel economy rules held by the EPA and the NHTSA in San Francisco. McConnell’s testimony stressed the importance of credit availability to auto sales, noting that with most consumers, if they don’t qualify for an auto loan, they can’t buy the vehicle.

However, because he is unaware of any lender who will “fund an auto loan based on promises of fuel savings,” McConnell expressed concern that the proposal’s vehicle cost increases would significantly dampen sales. And, McConnell warned, “if new vehicles don’t get sold, their fuel saving or environmental benefits won’t materialize.”

Click here(PDF) for NADA's full testimony