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January 1, Biden’s Fuel Efficiency Mandate Slammed by Major Automakers
Leading automakers including General Motors, Toyota, and Volkswagen, recently unleashed a barrage of criticism on the Biden administration, lambasting its plan to aggressively raise fuel efficiency standards.
Taking the helm of this criticism was the Alliance for Automotive Innovation. They excoriated the proposal by the National Highway Traffic Safety Administration (NHTSA) for Corporate Average Fuel Economy (CAFE) as bordering on the absurd, demanding major revisions.
The alliance didn’t mince words on the implications for the American consumer. They estimated that the average vehicle would be pricier by a hefty $3,000 by 2032 due to the penalties slapped on non-compliant automakers.
As they saw it, this “exceeds reason and will increase costs to the American consumer with absolutely no environmental or fuel savings benefits.”
The NHTSA, earlier this year, floated the idea of enhancing requirements by 2% annually for cars and a steeper 4% for pickups and SUVs from 2027 through 2032. This, they projected, would lead to an average fuel efficiency of 58 miles per gallon across the fleet.
Meanwhile, the American Automotive Policy Council, echoing the Big Three in Detroit, chimed in separately, pushing the NHTSA to slash its ambitious targets by half for trucks.
They highlighted a crucial aspect: the likes of Ford, GM, and Stellantis chiefly produce trucks, making up a significant 83% of their output.
NHTSA, not backing down, stressed its proposal was rooted in “saving Americans money at the gas pump and strengthening American energy independence.”
Their math indicates the perks of their proposal would overshadow the costs by an impressive $18 billion.
Yet, the automakers’ alliance countered with a startling revelation: they’re staring down the barrel of over $14 billion in penalties between 2027 and 2032. Divvying it up, GM would shoulder a $6.5 billion burden, Stellantis $3 billion, and Ford a cool $1 billion.
But that’s not all on their plate. The Energy Department’s idea to revamp the petroleum-equivalent fuel economy metric for EVs in the CAFE program ruffled feathers, as automakers protested it would “devalue the fuel economy of electric vehicles by 72%.”
Throwing a potential olive branch, GM hinted at possibly getting behind NHTSA’s proposal, but only if the Energy Department backtracked on its new metric.
Volkswagen, staring down potential CAFE penalties north of $800 million come 2032, dismissed the proposal as “arbitrary, capricious, and an abuse of the agency’s discretion.”
Subaru chimed in with concerns about feasibility, stating the “current proposals do not allow for sufficient fleet ramp up to the necessary levels of electric vehicles.”
It’s worth noting, this isn’t the first clash. Both automakers and the United Auto Workers union have previously railed against the Environmental Protection Agency’s parallel regulations, deeming them unworkable and in dire need of toning down.
As our loyal readers, we encourage you to share your thoughts and opinions on this issue. Let your voice be heard and join the discussion below.
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Nate
October 21, 2023 at 7:12 pm
Automobiles cost have risen because automakers invested in EV’s that aren’t worth a sh_t! Their losses are now being made up in the gasoline automobiles simply because they lost their asses! Thanks again for nothing, JOE!!!!
Steven
October 21, 2023 at 7:32 pm
IF the technology existed to significantly increase fuel economy without prohibitively increasing cost, ALL auto manufacturers would do so for purely marketing reasons. There are ZERO cases in which government mandates to increase fuel efficiency don’t HARM drivers.
I love Freedom
October 21, 2023 at 9:39 pm
It’s just another of our dictatorial Government’s demand. Wake up people before you are no longer free.
Larry
October 22, 2023 at 7:45 am
Biden can try to get laws passed but he cannot mandate. He is not a dictator yet.
I love Freedom
February 4, 2024 at 6:49 pm
He has mandated.
Biden has demanded many dictatorial policies. Everyone is screaming that Trump will be a dictator, just look around and see we already have a dictator.You think it’s bad now,another 4 years of Biden people will have no freedom. We are already losing our freedom of speech. Voting is IMPORTANT!
EMMA
October 22, 2023 at 9:15 am
I THINK OUR COUNTRY HAS MORE IMPORTANT ISSUES. BIDEN JUST SHUT UP AND PLEASE GO AWAY.
Eugene Horn
October 23, 2023 at 12:35 pm
The facts on electric vehicles grossly distort their advantage or benefits. Here is reality:
The 400 miles average between recharge is based on 50 miles per hour and 70 degrees F with no AC or Heat. Each one of these can drop 15% or more with moderate changes to 70 MPH, 90 degree summer or 30 degree winter. Imagine what happens in Michigan when temperatures drop below 0 degrees F or in Arizona when they reach 120 F!
80% of world lithium reserves reside in 4 countries with Chile holding 50%. Imagine what the lithium cartel will look like!
US lithium reserves are enough to supply the 260 million registered US vehicles one time after they are dug up and refined.
It takes 70 to 100 megawatts of electricity to recharge the typical sedan lithium battery. SUVs and trucks will take more. The average mileage per registered US vehicle is 15,000 per year. If the average household has 2 vehicles, their electric usage will increase 50% to 70%! California has 15% of all registered vehicles and electric outages!
The average gasoline and fuel tax which funds highway construction and maintenance is between $.50 cents and $1.00 a gallon and the average mileage is between 15 and 20 miles/gallon. At 15, that is 1,000 gallons, $500 to $1,000 per vehicles times 260 million vehicles of lost highway support!
Then there is the numerous infrastructure issues.
You can argue about calculations, and timing but not about these major issues with no current answers.
Rocky C
October 31, 2023 at 7:54 pm
Beware of politicians’ promises and deep State regulators’ rule making. The government’s pressure to drive consumers to electric vehicles by making internal combustion engine vehicles is all about control. From “15-minute” cities to pandemic lock downs, imagine if the government also had the control to turn off the electric grid to contain the targeted population as it so chooses. Welcome to the new world order!