Auto Dealers Rep Rips Proposal to Hike Fuel Economy Standard to 60 MPG by 2025
By Scott Doggett October 21, 2010
By Michelle Krebs
Ed Tonkin, chairman of the National Automobile Dealers Association, warned the government to be careful of ignoring the consumer and their cost of vehicles as an increase in federal fuel economy standards to 60 miles per gallon by 2025 is considered.
"We would like to believe consumers would be willing to pay whatever it takes to reach such a worthy goal, but will they?" Tonkin said today during a speech to Detroit's Automotive Press Association.
The 60-mpg-by-2025 proposal is being circulated by the U.S. Environmental Protection Agency and Department of Transportation.
"60 mpg has a nice ring to it...but raises many questions," Tonkin, who owns dealerships in Portland, Oregon, said, adding his trade group's job is to grill the government on questions regarding such a dramatically increased standard.
Among the questions Tonkin raised were: Is 60 mpg technically feasible and economically practical? Is 60 mpg overly ambitious? What are the unintended consequences of 60 mpg?
"Remember CAFE's unintended consequence? It led to the demise of the station wagon and introduced the age of the SUV," he reminded.
Will large numbers of consumers be priced out of the market? "The American consumer buys products that are convenient, predictable and affordable. It's the same for cars. The most important factors for a car buyer are overall price and monthly payment," he said.
Will it create a new "jalopy effect," where owners keep their old vehicles instead of paying a premium for higher mpg ones, hurting, not helping, the environment and further threatening energy security?
"Public policy has to take into account the harsh realities of the marketplace," concluded Tonkin. "And that requires us to keep in mind the most important person in the auto industry is the consumer. And consumer preference always prevails."
Michelle Krebs is Edmunds.com senior analyst and editor at large; she a board member and former president of the APA.
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