Consumers Pay if Fuel Economy Rules are not Delayed, NADA Warns

Better understanding of how consumers will react to higher prices and technology needed, NADA says

WASHINGTON--Feb. 14, 2012: In comments filed late Monday with the Obama administration, the National Automobile Dealers Association (NADA) raised serious concerns about proposed fuel economy rules for Model Year 2017-2025 passenger cars and light trucks. NADA issued the following statement:

"From NADA's analysis, more than 6 million drivers will no longer qualify for financing if $3,000 (National Highway Traffic Safety Administration estimate) is added to the price of a 2025 vehicle due to fuel economy mandates. 

"NADA estimates that the actual cost to consumers will be much closer to $5,000. Even for those who can afford the price hike will avoid the substantial upfront cost and will choose a pre-owned car or truck or simply hold onto their current vehicle longer. Either way, real energy security and environmental gains will not be realized if consumers do not buy or cannot afford to put these new technologies on the road.

"The federal proposal goes too far, too soon and too fast. It consistently underestimates the actual cost to car buyers and how they will react to the proposed MY17-25 fuel economy mandates.

"Dealers support increased fuel economy standards as long as the improvements leverage, not fight, consumer demand. NADA urges the administration to put these rules on hold until there is a better understanding of how consumers in 2025 will react to these price increases and technology changes."

The NADA Story
The NADA story began in 1917 when 30 auto dealers traveled to the nation's capital to convince Congress not to impose a luxury tax on the automobile. They successfully argued that the automobile is a necessity of American life, not a luxury. From that experience was born the National Automobile Dealers Association. Today, NADA represents nearly 16,000 new-car and -truck dealerships with 32,500 franchises, both domestic and international. For more information, visit NADA.