Report: NADA president urges Fed to reconsider fuel rules

Filed under: Car Buying, Government/Legal

The National Automobile Dealers Association has joined the ranks of those opposed to upping Corporate Average Fuel Economy standards to 60 mpg by 2025. The dealer group says that with fuel prices still low, consumers are more interested in horsepower and style than they are super-efficient vehicles. That means that if the federal government starts mandating ever more efficient vehicles that are significantly costlier to manufacture, dealers are likely to see sales falter as automakers have to elevate MSRPs to keep from losing their shirts. That's the fear of NADA chairman Ed Tonkin and his constituents. Tonkin should know - he himself owns a mutli-brand dealership in Portland.

Of course, Tonkin's argument hinges against further upping CAFE numbers hinges upon fuel prices staying at their current levels -- something that even the most optimistic minds are hesitant to believe. The federal government is expected to unveil its plan for increasing fuel economy standards early next year. So far, word has it that the Obama Administration is looking to impose an average of 35 mpg by 2016 and as much as 60 mpg by 2025.

[Source: The Detroit News | Image: NADA]

Report: NADA president urges Fed to reconsider fuel rules originally appeared on Autoblog on Fri, 22 Oct 2010 18:30:00 EST. Please see our terms for use of feeds.

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Source: http://www.autoblog.com/2010/10/22/report-nada-president-urges-fed-to-reconsider-fuel-rules/

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