Car Dealers Continue Push To Rethink 2025 Gas Mileage Rules

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Approved by auto manufacturers, environmental groups and the White House, 2025's 54.5 mpg gas mileage rules are still causing headaches for dealers.

The National Automobile Dealers Association (NADA) continues to oppose the ruling, and hopes that newly introduced legislation will lead to a re-think in 2017.

The 2025 Corporate Average Fuel Economy (CAFE) rules require a manufacturer's average fuel efficiency to be 54.5 mpg or above by 2025.

The rules do not apply to trucks, which will meet a different set of rules, and vehicles are expected to meet efficiency targets on a steady increase up to 2025.

As Wards Auto reports, NADA worries that the vehicles produced to meet the rules won't be of interest to buyers, who may be put off by the higher prices the extra technology will result in.

"It will create a jalopy effect," says NADA Chairman Bill Underinner, "where people hold onto their cars for longer because they don't like what's being sold.

"It's going to be very hard for the manufacturers to build cars the public wants to get 54.5 mpg."

NADA is supporting new legislation introduced last month by Congressman Mike Kelly (R-PA), demanding a safety and jobs analysis of the new gas mileage rules. Many worry the new rules will harm the market enough that job losses will result.

NADA is also concerned about increased prevalence of OEM-mandated upgrades to dealerships. Underinner says that not all dealerships can afford the property upgrades--while those that can, risk customers thinking they're being overcharged for their cars, if a dealer can afford millions in renovations.

In the end, it's up to the customers themselves. There are plenty of customer benefits to the 2025 rules--but will buyers see it that way?

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Comments (7)
  1. "It's going to be very hard for the manufacturers to build cars the public wants to get 54.5 mpg."

    Apparently it didn't stop the public from buying Millions of Prius...

  2. There is little doubt that BEVs will be practical and affordable vehicles by 2025 so I think what the cardealer association should really fear is not the jalopy effect but the plug-in effect: a massive shift in demand towards EVs that will become a very attractive alternative for the sort of expensive and compromised ICE vehicles the dealers see coming their way.

    Since these EVs will probably sold and serviced outside the current dealer system (if Elon Musk gets his way)this could be do or die time for NADA. This will get ugly...

  3. These guys are shilling for the Republicans. They cannot seriously be worried that their sales are in jeopardy 13 years from now. This is just politics.

  4. Why should consumers & manufactures subsidize underperforming dealerships. Perhaps there are just too many dealerships, or they're failing to meet customer service expectations?

    Consumer Reports just confirmed that green vehicles rate high in reliability. Since some dealerships rely on higher maintenance margins, their concerns may focus on lower ownership costs vs. cheap model offerings.

    Today's car buyers have access to more resources and are some of the knowledgable in the history of automotive. Buyers are evolving and driving changes in automotive industry by demanding increased expectations.

  5. Exactly!

    Apparently, all those high MPG hybrids aren't exactly hard to sell in CA's Toyota dealers. Being the BEST SELLING car brand is a proof that lots of consumers do care about high MPG cars.

    I bought a Volt and it took me 2 months to get my car and I had to visit 5 different Chevy dealers to get the car...

    Dealers are just too "dumb" to transform themselves to the new age.

  6. Christ! These people have no forward vision! I wonder if any of them have even thought about the price of gas come 2025 sure I want to spend 20 dollars a gallon on a car that gets 20 mpg where do I sign?
    Or they need to take a trip to Europe to see what sells there. How about electric hybrids... right there you can hit that sweet spot (over 55mpg) with any car design... but really, who cares cause we are all gonna be in flying cars by then...

  7. Isn't the 54.5 number about 39-40 on the window sticker?

    MrEnergyCzar

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