The cost of an average vehicle, for example, will increase by more than $3,000 in 2025 because of fuel economy and global warming vehicle mandates enacted by the Obama administration, according to the Environmental Protection Agency and the National Highway Traffic Safety Administration.
Bailey Wood, director of legislative affairs and communications with the National Automobile Dealers Association (NADA), discussed the handout with CNSNews.com and called $3,000 a “softball estimate.” Wood said the Center for Automotive Research puts the cost increase to comply with fuel economy standards at as much as $10,000 per vehicle. Bailey said the Obama administration wants to double the fuel efficiency of vehicles to about 55 miles per gallon by 2025. “Doubling fuel economy has a very real cost,” Wood said. As a result, according to the Energy Information Administration, vehicles that currently cost $15,000 will be regulated out of existence and be replaced by more expensive cars that meet fuel economy and emissions requirements. The Obama administration also wants 25 to 66 percent of vehicles on the market by 2025 to be hybrid or electric – a reality Wood said seems nearly impossible. To date, these kinds of vehicles – even during the highest prices at the pumps – have never topped three percent of sales, Wood said.
Then there is the overall cost to the automobile industry based on the money it will have to invest to comply with mandates and regulations. According to the EPA, the cost for Market Year (roughly August through July) 2011 is $1.46 billion. Between 2012 and 2016, that cost will total $51.7 billion. NADA did its own math to estimate the cost for compliance from 2017 to 2025– $150 billion. “That will make it the most expensive auto rule in history,” Wood said...more
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