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Suppliers Make a Case for Tough Emission, Fuel Economy Rules
Suppliers are urging the U.S. to retain tough emission goals for greenhouse gases because of the investment already made in technologies to meet the standards.
#economics #regulations
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Suppliers are urging the U.S. to retain tough emission goals for greenhouse gases because of the investment already made in technologies to meet the standards.
Analysts tell Automotive News that a rollback in the 2025 standards would drive prices higher for such components by lowering demand and reducing sales volumes. Suppliers also warn of job cuts.
That outcome would be the opposite of the Trump administration’s desire to protect jobs and lower car prices. Those goals prompted the White House earlier this year to order a review of the Environmental Protection Agency’s conclusion under the Obama administration that the standards are feasible and cost-effective.
Carmakers welcome the new assessment. They claim that cheap fuel prices and a strong market shift toward pickup trucks and relatively large and inefficient SUV/crossover vehicles will make it tougher to meet the 2025 standard without raising vehicle prices.
Suppliers of emission control hardware contend that the best results will come through regulatory stability. They are especially eager to retain the current standards because the auto industry’s supply base provides an estimated 80% of the technologies required to meet future emission and fuel economy targets, AN says.
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