Vehicle price change and automotive manufacturing employment in 2025 have perverse effects – the higher the cost, the worse it is for the economy and the environment. (CAFE mpg/gas $ gallon)
Government fuel economy regulations under development at the National Highway Traffic Safety Administration, the Environmental Protection Agency and the California Air Resources Board could severely hurt the U.S. economy by causing the loss of another 1.3 million manufacturing jobs, as well as hurt the environment. As a result, the auto market may never recover its production and employment levels that helped create the now shrinking middle class.
Those are the grim conclusions presented today by the respected, but heavily-funded and supported by the auto industry, Center for Automotive Research during a seminar in Michigan. This comes as the U.S. national unemployment rate hovers at an official 9.8%, which is an understated number since it doesn’t include under-employed, forced retirees or beaten down job seekers who are the victims of Republican ‘socialism and tax cuts for the rich’ policies.
“The higher the fuel economy mandate, the lower the employment in auto manufacturing,” said Dr. Sean McAlinden, Executive Vice President of Research and Chief Economist, Center for Automotive Research.
The controversial greenhouse gas regulations being proposed by the Democrats may require a fuel economy average as high as 62 mpg by 2025 for new vehicles since GHG emissions directly correlate with fuel economy.
Combined with the impending safety regulations already in place and anticipated new ones as regulatory reach expands, consumers are looking at potential price increases of roughly $6000 to $8000 per vehicle, after fuel cost savings are accounted for.
