Automakers Erupt On Biden After Crazy New Demand

Photo by Benjamin Brunner on Unsplash

( – On Monday, the Alliance for Automotive Innovation which represents almost all major automakers, including Toyota Motor, Volkswagen, and General Motors slammed the Corporate Average Fuel Economy (CAFE) proposal released by the Biden administration’s National Highway Traffic Safety Administration (NHTSA) arguing that it would drastically increase the requirements for fuel efficiency.

The group has claimed that the average price for a vehicle under the new proposal would need to increase by $3,000 by 2032. As they pointed out this new price would be driven by the penalties that automakers could end up facing for non-compliance and pointed out that the figure is beyond what is reasonable and would only have a cost for American consumers without actually delivering fuel savings or better environmental benefits.

The proposal was released in July and proposed that between 2027 and 2031 passenger cars should have their fuel efficiency requirement boosted by 2 percent per year, while pickup trucks should have it boosted by 4 percent. This would lead to an overall average fuel efficiency fleet-wide that is around 58 miles per gallon.

On Monday, the American Automotive Policy Council, which represents the Detroit Three automakers, similarly proposed that the NHTSA should drop the requirement for trucks to 2 percent, and argued that this proposal was going to have a disproportionate impact on the truck fleet. The group added that 83 percent of the vehicles produced by General Motors, Ford, and Stellantis were trucks.

However, the administration has maintained that the new proposal was focused on helping Americans save money at the gas pump and boosting American energy independence.

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