The Alliance for Automotive Innovation, a Washington, D.C.-based trade association and lobbying group, is criticizing new fuel economy standards proposed by the National Highway Traffic Safety Administration (NHTSA). The updated fuel economy standards were proposed under direction from the Biden administration following an executive order signed in April of 2022. The Alliance for Automotive Innovation includes representatives from nearly every major automaker, including GM.
Per a report from Reuters, the Alliance for Automotive Innovation characterized the NHTSA’s proposed Corporate Average Fuel Economy (CAFE) standards as unreasonable, saying that they would result in an increase to average vehicle prices of more than $3,000 by 2032 due to penalties incurred for companies not in compliance, adding that the standards “[exceed] reason and will increase costs to the American consumer with absolutely no environmental or fuel savings benefits.”
This past July, the NHTSA proposed revised fuel economy standards that include a 2-percent annual increase to average fuel economy for passenger vehicles, and a 4-percent annual increase to average fuel economy for trucks, starting in 2027. The standards would bring average fleet fuel economy to 58 mpg by 2032, and according to the NHTSA, will “strengthen energy security” and “save Americans hundreds of dollars at the gas pump,” with a total estimated savings of $18 billion. The new NHTSA fuel economy standards build on previous changes put in place by the U.S. Department of Transportation.
The American Automotive Policy council, which represents the Big Three Detroit automakers (GM, Ford, and Stellantis) urged the NHTSA to lower its proposed fuel economy standards for trucks to 2 percent per year, arguing that the current proposal “disproportionately [impacts] the truck fleet.” The group added that 83 percent of the vehicles produced by GM, Ford, and Stellantis are trucks.
The American Automotive Policy council previously stated that the proposed fuel economy standards could result in $6.5 billion in penalties against GM by 2033. Stellantis is estimated to pay $3 billion in penalties, while Ford is estimated to pay $1 billion in penalties.