Automakers Including GM Tell Biden Administration Proposed Fuel Economy Standards Are Unrealistic
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GM and other manufacturers who are members of the Alliance for Automotive Innovation told the administration of President Joe Biden that proposed fuel economy standards are currently impossible to meet in the timeframe indicated.
Enforcement of the fuel economy requirements would result in a situation where “manufacturers will pay over $14 billion in non-compliance penalties between 2027 and 2032,” Reuters reported GM and several other automakers as claiming.
The lion’s share of the penalties would be paid by the Big Three or Detroit Three car companies – GM, Ford, and Stellantis – amounting to approximately $10 billion. Other Alliance for Automotive Innovation members such as Volkswagen, Hyundai, and Toyota would shell out the remaining estimated $4 billion or thereabouts between 2027 and 2032.
The fines would accrue because an expected 50 percent of light trucks and one-third of passenger cars will be unable to meet the proposed fuel economy standards in the years leading up to 2032. The NHTSA called for an annual increase in fuel efficiency of 2 percent for passenger vehicles and 4 percent for trucks from 2027.
The standard advanced by the NHTSA would raise fuel efficiency requirements to 58 miles per gallon if implemented. The NHTSA itself does not have the authority to regulate fuel efficiency, but its proposed guidelines can be adopted by other governmental bodies that can issue legally binding regulations, such as the EPA.
While similar complaints about stringent standards and the potentially massive fines resulting from them prompted European lawmakers to ease upcoming vehicle emissions requirements, the NHTSA seemed unfazed by the objections of GM and other major automakers.
In fact, an NHTSA representative vouched for the accuracy of the total fines GM and other automakers expect, stating the multi-billion dollar penalties are “consistent with our statutory obligations.” The car companies “are free to use electric vehicles to comply and avoid penalties altogether” according to the same representative.
GM and Stellantis have already been hit with hundreds of millions in fines for 2016 through 2019 model-year vehicles. Stellantis claims the current proposal “exceeds reason and simply put, will increase costs to the American consumer.” The penalties are expected to raise new car prices by $3,000, which the automakers say will push more people towards driving older, less fuel-efficient vehicles for longer, canceling out any environmental benefits.
Earlier this summer, the EPA proposed a rule that would mandate 67 percent of new vehicles produced for sale in the USA must be EVs by 2032. The Alliance for Automotive Innovation called this plan “neither reasonable nor achievable,” though GM continues to work toward its goal of launching 30 EV models worldwide by 2025 and has developed its Ultium batteries, electric Ultium Drive motors as well as highly scalable BEV3 and BT1 platforms to support its ongoing electrification.
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What do the auto companies have to do with unrealistic mileage targets set by the government? The madness is the government here.
Tell me China will b ethe automotive behemoth in the Auto Industry without telling me.
Talk about being extremely shortsighted.
Looks like the USA, Europe, SK, and Japan will be bailing out bankrupt automakers in the next 5-10 years.
gm’s loss of market share in the last 25 years has been obvious capitulation to the far-east imports. Just look around your hometown.
Few to no sedans, bailing on the minivan market, overpricing just about everything, cornering themselves with nothing but EVs, not even offering hybrids, and connecting their umbilical cord to the government (yes, bailouts have strings…who knew?) have been some sort of strange path “forward” to the entities that control gm.
That’s ignorant- kind of like burning the village down to save it.
Ironically, you have pieces of excrement like representative Rashida Tlaib that was on the picket lines “supporting” striking UAW members while days earlier she signed a letter encouraging the EPA to mandate even more draconian standards to the tune of 70% required EV SALES.
gm and the UAW have nobody but themselves to blame for hopping in bet with the inept Biden adminstation.
If Democrats didn’t contradict themselves daily, they’d have no purpose.
And yes, she’s awful.
Yea like 2008 fixed the banks.. riiiightt….
The industry should counter by offering ONLY electrics for Federal fleet bids. Make them eat their own mandates.
“You need a bunch of new armored Suburbans? Sorry, the best we can provide you is Bolt EVs.”
Actually, I like it. Good suggestion!
This just proves how inept this current administration truly is, i wish trump was in the white house, none of this mess would be happening.
Just say NO! Your customers will stand with you against this unrealistic mandate. Please vote GOP in 24! Save our country!
Screw the EPA and the Feds. Punish the citizens for buying V8 trucks and sports cars but it’s okay for them to take their private jets all over the planet.