MRC -- A group representing General Motors, Toyota Motor, Volkswagen and nearly all other major automakers sharply criticized the Biden administration proposal to drastically hike fuel efficiency requirements, said Reuters.
The Alliance for Automotive Innovation said the National Highway Traffic Safety Administration's (NHTSA) Corporate Average Fuel Economy (CAFE) proposal was unreasonable and requested significant revisions.
The industry group argued the plan would boost average vehicle prices by $3,000 by 2032 because of penalties automakers would face for not being in compliance, adding the figure "exceeds reason and will increase costs to the American consumer with absolutely no environmental or fuel savings benefits."
NHTSA in July proposed boosting requirements by 2% per year for passenger cars and 4% per year for pickup trucks and SUVs from 2027 through 2032, resulting in a fleet-wide average fuel efficiency of 58 miles (93 km) per gallon.
The American Automotive Policy Council, a group representing the Detroit Three automakers, separately on Monday urged NHTSA to halve its proposed fuel economy increases to 2% annually for trucks, saying the proposal "would disproportionately impact the truck fleet."
The group noted 83% of vehicles produced by Ford, GM and Chrysler parent Stellantis are trucks.
The White House and NHTSA did not immediately respond to requests for comment. The auto alliance said last month automakers would face more than $14 B in non-compliance penalties between 2027 and 2032.
U.S. automakers separately have warned the fines would cost GM $6.5 billion, Stellantis $3 B and Ford $1 B. Automakers also raised alarm at the Energy Department's proposal to significantly revise how it calculates the petroleum-equivalent fuel economy rating for EVs in NHTSA's CAFE program, saying it would "devalue the fuel economy of electric vehicles by 72%."
GM said on Monday it could support NHTSA's proposal if the Energy Department rescinded its petroleum-equivalent proposal.
We remind, private Russian oil producer Lukoil will lend Azeri state oil firm Socar $1.5 B as part of a broader deal that will allow Socar's 200,000-barrel-per-day Turkish STAR refinery to process Russian crude again. The deal will give Lukoil another customer in close proximity to Russian ports after most European refiners stopped importing its crude to comply with European Union sanctions imposed after Moscow launched what it calls a "special military operation" in Ukraine in 2022.