WASHINGTON, D.C. -

On Wednesday, the National Automobile Dealers Association welcomed the Obama administration’s continuing review of the proposed model year 2017–2025 fuel economy rules.

As White House personnel held discussions with automakers, environmentalists and government officials, NADA articulated issues the association believes have to be raised during the summit called, “Advanced Vehicles, Driving Growth.”

NADA asked a series of questions and gave their point of view on the matter:

—According to Obama administration estimates, are consumers able and willing to pay almost $3,000 more on average per vehicle in 2025 to get better fuel economy?

NADA: Federal documents showed the cumulative average per vehicle cost of the model year 2011, model year 2012–2016 and model year 2017–2025 fuel economy rules approaches $3,000 per vehicle.

—Will new graduates and working families still be able to buy a new car or truck?

NADA: Vehicles that currently cost $15,000 and less could be regulated out of existence, according to the U.S. Energy Information Administration report titled, “Annual Energy Outlook 2011.”

—With upwards of 90 percent of new vehicles financed in some way (auto loans and leases), how many fewer working families will still qualify for a loan in 2025?

NADA: Association research shows that 6.8 million Americans could no longer qualify for financing to purchase the most affordable new vehicles should prices escalate an additional $3,000.

—Will there be broad consumer acceptance of hybrid and electric vehicles?

NADA: Hybrid sales have never been more than 3 percent of sales in any given year. For automakers to comply with the model year 2017–2025 mandates, 15 percent of the vehicles sold must be hybrids or electrics. 

—When will families achieve the “$8,200 in fuel savings over the lifetime of a new vehicle” that is promised?

NADA: To achieve $8,200 in fuel savings, the EPA estimates that a consumer will have to drive the vehicle for 211,000 miles during its life.

Latest Court Decision Associated with Fuel Standards

In other news on this same topic, multiple online reports detailed a three-judge panel upholding the Obama administration’s ability to limit greenhouse gas emissions, including setting 2012–2016 fuel-efficiency standards and tailpipe limits.

Reports indicated the U.S. Court of Appeals in Washington, D.C., dismissed challenges brought by states and major industries including chemical, energy, utility, agriculture and mining companies, as well as the National Association of Manufacturers.

Officials said the Obama administration plans to finalize the 2017–2025 fuel-efficiency standards and greenhouse gas emissions limits by August. The rules will hike requirements to 54.5 mpg by 2025.

National Association of Manufacturers resident and chief executive officer Jay Timmons released a statement on behalf of the industry coalition on the ruling to regulate greenhouse gas emissions from stationary sources through the Clean Air Act.

“The ruling is a setback for businesses facing damaging regulations from the EPA. The Clean Air Act was not designed to regulate greenhouse gases, and even the EPA said that it could not comply with the statute as written to implement these regulations,” Timmons said.

“The EPA’s decision to move forward with these regulations is one of the most costly, complex and burdensome regulations facing manufacturers,” he continued. “These regulations will harm their ability to hire, invest and grow. By moving forward, the EPA is adding to the mounting uncertainty facing manufacturers of all sizes. We will be considering all of our legal options when it comes to halting these devastating regulations. The debate to address climate change should take place in the U.S. Congress and should foster economic growth and job creation, not impose additional burdens on businesses.”