Question

Why would the manufacturers of autos resist attempts to establish higher fuel efficiency standards? How would their costs, sales, and profits be affected?

150 words please.

Answer 1

• Automakers cannot raise the mileage, or, shrink pickups, SUVs, or, minivans
• SUVs are overweight & cheaper, they lack technology; are worse-off in terms of pollution, and, mileage
• Carmakers lobby to get standards weakened
• Against fleet with no tailpipe pollution; only 15% of sales after 10 years, will come from these vehicles; the costs will be high but the organizations' profits will get affected

• 30% of manufactured vehicles do not meet the current regulations
• Standards could save consumers $150 billion;
• As per auto manufacturers, higher fuel efficiency standards limit consumer choice
• Electric vehicles mandate would lead to a drop in auto sales

• 100% increase over current standards would lead to higher car prices
• Average fuel efficiency in 2009, and, the expected fuel efficiency in 2016, and, 2025 are 21, 34, and, 56 mpg. The fuel consumption is reducing continuously; consumers may earn the increase in price from fuel savings over the next 3-4 years.
• Consumers do not want to pay for unnecessary bureaucracy, and, redundant rules. Light trucks, and, fuel-efficient cars will require consumers to pay more.