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Dealer Trade Group Warns “Go Slow” On New Fuel Economy Regs

NADA raises caution flag on 60 mpg proposal

by on Oct.22, 2010

NADA chief Ed Tonkin fears a 60 mpg fuel economy standard will price many car buyers out of the market.

The National Automobile Dealers Association has put out the caution flag over plans now circulating in Washington D.C. to raise federal fuel economy standards to 60 miles per gallon by 2025.

“NADA has long supported improvements in fuel economy, but it’s also our role to raise some tough questions so there’s no rush to judgment,” NADA Chairman Ed Tonkin told the Automotive Press Association in Detroit.

The proposal by the Environmental Protection Agency and the U.S. Department of Transportation to increase fuel economy standards to 60 miles per gallon has been hailed by environmental groups, Tonkin noted.

“We would all like to believe consumers would be willing to pay whatever it takes to reach such a worthy goal. But will they? Or is this another example of getting ahead of the consumer, pushing too far, too fast? Will huge numbers of consumers be priced out of the market?” Tonkin questioned.

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“Nothing happens without a buyer,” the NADA chairman added. “My job is to try to match supply and demand every single month everywhere I have a dealership. And this is true of every dealer in the country. Consumer demands vary from market to market. And consumer preference always prevails.”