Auto Journalists Comment On EPA Emission Standards
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Washington DC April 2 2018; Today in Washington, the EPA marked the completion of the Midterm Evaluation (MTE) process for setting Green House Gas (GHG) emissions standards for cars and light trucks for model years 2022-2025. As widely expected, current emission targets set by the previous administration were determined to be “not appropriate.” With today’s decision, the EPA and the National Highway Traffic Safety Administration (NHTSA) announced the start of a new process to establish “appropriate GHG emissions standards and Corporate Average Fuel Economy (CAFE) standards.”
Members of the Cox Automotive Industry Insights team have been watching this decision carefully and offer the following commentary on today’s development.
From Michelle Krebs, executive analyst for Autotrader:
“The rollback of U.S. emissions and fuel economy standards, which come as no surprise, will not suddenly prompt automakers to abandon all plans for cleaner, more fuel-efficient vehicles. These are global automakers who see the rest of the world marching in a different direction. To play in other markets, they must meet the standards of other countries, most notably China, the biggest car market in the world which is demanding cleaner vehicles like electrics. The disconnect in the U.S. is that consumers don’t favor clean, highly fuel-efficient vehicles like electrics and hybrids, particularly as gas prices remain low and consumers opt for sport-utility vehicles. EV and hybrid sales account for a miniscule 3 percent or less of the entire new-car market annually.”
Rebecca Lindland, executive analyst for Kelley Blue Book:
“The key to cleaner air and adoption of cleaner vehicles is a single, national standard with a flexible credit program. A separate set of rules under the California waiver representing 40% of the new vehicle market will only complicate matters and lead to higher prices of new cars and trucks for the entire nation. Consumers may be priced out of the market, forcing a buyer to purchase a used car or keep an existing, less clean vehicle longer, further delaying the greening of the fleet.”
Karl Brauer, executive publisher of Autotrader and Kelley Blue Book’s KBB.com:
“The rollback of the earlier standards might create an interesting scenario where U.S. emissions standards are much lower than other developed countries. That could theoretically force U.S.-based automakers to keep advancing fuel efficiency efforts, regardless of U.S. standards. However, it could also set up a situation where vehicles sold in the U.S. have fewer emissions restrictions, higher performance, reduced MPG and lower cost. Future U.S. vehicles may be almost identical to vehicles sold in other markets except for drivetrain specifications — and price. Given the current trend of U.S. car buyers, who have generally ignored fuel-efficiency in favor of larger, more powerful vehicles, that scenario might resonate with car shoppers.”
Brian Moody, executive editor of Autotrader:
“The automotive landscape is becoming increasingly global so American consumers are likely to feel the results of stricter mpg and emissions requirements no matter what. We’re getting to the point where automakers like The Volkswagen Group and the Renault-Nissan-Mitsubishi Alliance simply can’t afford to build cars to dramatically different specs in each country. Increasingly, that will simply be a brand play – think Nissan Leaf / Renault Zoe. There is one exception – light-duty trucks. Although changing, today, vehicles like the Chevrolet Tahoe and GMC Sierra sell especially well in North American, so the prospect of looser emissions rules here in the US will likely to benefit those who buy and sell full-size pickups and truck-based SUVs, vehicles sold on the promise of size, power, towing capability and off-road ability.”
