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New Study Slams U.S. Fuel Economy Targets
A new analysis says current U.S. fuel economy goals for 2025 will hike car prices by more than $1,800 and eliminate 150,000 jobs by 2021.
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A new analysis says current U.S. fuel economy goals for 2025 will hike car prices by more than $1,800 and eliminate 150,000 jobs by 2021.
The report, which was funded by the Alliance of Automobile Manufacturers and compiled by Indiana University, also concludes that the rules will generate a net gain of 150,000 jobs by 2031. It also expects a net fuel savings for consumers over the life of their more efficient vehicles.
Co-author John Graham says the report doesn’t question the need for regulation, but it does show that low fuel prices and weak demand for electrified vehicles will have a larger impact than was thought initially.
The report follows a study last autumn by the Center for Automotive Research in Ann Arbor, Mich., that predicts the standards could eliminate at least 1.1 million jobs. The study warns that continued low fuel prices will hurt future demand for high-tech, efficient cars, thereby causing job cuts in the auto industry.
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