Auto Dealers Oppose New Fuel Economy Standards

The White House has proposed new U.S. fuel economy standards that would double the average gas mileage for the U.S. passenger fleet by 2025. Companies that make cars generally agree with the ambitious goal, but the dealers who sell the cars do not.

The National Automobile Dealers Association (NADA) has signaled its opposition, saying that more than seven million Americans would no longer be able to afford to buy a new car or truck in 2025 if the standards go into effect.

At a public hearing convened by the Environmental Protection Agency (EPA) and the National Highway Traffic Safety Administration (NHTSA) in San Francisco, NADA director Forrest McConnell said the EPA's projected $3,200 increase in vehicle prices over model year 2010 will also limit the ability of many other consumers to buy the vehicles they want or need.

No more cars less than $15,000

He cited a 2011 U.S. Energy Information Administration analysis found that if the rule takes effect, cars under $15,000 will no longer be available in 2025. He said that these least expensive cars are the only option for many college students and working families looking for a new car.

"How is a rule that eliminates the most affordable new cars on the market pro-consumer?" McConnell asked the EPA and NHTSA officials who are considering a new mandate to increase fuel economy to 54.5 miles-per-gallon by 2025.

But McConnell said the country's auto dealers support continuous improvements in fuel economy. But the new standards, he said, would result in fewer new cars sold.

"Instead of fighting the consumer, NADA urges the administration to act in a manner that will leverage consumer demand, thereby maximizing fleet turnover and ensuring maximum feasible fuel economy increases."

McConnell is a Honda and Acura dealer in Montgomery, Ala.