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What evidence is there that lower mpg will also mean lower vehicle prices? In fact, lower prices would be more likely if Trump’s tariffs on foreign-made parts for vehicles assembled in the US were repealed.
From my perspective, the key ways that lower MPG requirements could provide manufacturing savings are: 1) Simpler engine technology – no need for expensive technologies like turbochargers, direct fuel injection, variable valve timing, or cylinder deactivation systems. 2) Lighter materials not required – MFGs can use traditional steel rather than expensive lightweight materials like aluminum, high-strength steel, or carbon fiber. 3) Less hybrid/electric complexity – no need for the costs of batteries, electric motors, power electronics, etc. Overall, I think this is a good move. That said, the cost savings on the front end of a less expensive car may end up being offset by the need to buy more fuel over time. Just need to keep getting those gas prices lower!
The auto makers are smart enough to know that anything Trump proposes to lower MGP will be on the chopping block for the next Democratic president and they will then need to invest money to get back on track. Lower MPG will only be a short term fix (which is all Trump is looking for) which will bite the automakers who take any advantage of the change. If he really wants long term price decreases he needs to remove the damaging tariffs he is taughting as liberating us as they affect all levels of the auto industry price pount.
Ditto.
American auto makers (and maybe the Japanese too) are going to get wiped out on the world market by the Chinese in the next two decades.
This is from Ford CEO Jim Farley:
“The challenge for Ford and other automakers outside of China goes far beyond AI assistants. Thanks to massive government subsidies, vertical integration and other factors, Chinese firms have built up immense EV manufacturing scale and driven costs down. What’s perhaps even more worrisome to carmakers trying to compete with Chinese offerings in markets around the world: The cars may be cheap, but they don’t feel like it.
“And even beyond that, their cost, their quality of their vehicles is far superior to what I see in the West,” Farley continued. “We are in a global competition with China, and it’s not just EVs. And if we lose this we do not have a future at Ford.”
https://insideevs.com/news/764318/ford-ceo-china-evs-humbled/
This.
Great Decision! – I just drove a Chinese BYD hybrid last week in the UK and got 60mpg in a mid-size SUV. I’m sure we can export millions of our Chevy’s and Jeeps to the whole world because because any thinking person with a brain Cleary prefers to get the fewest miles per gallon consume more fuel and pay higher prices. Yeah, right! Good luck with that, suckers, if this is what you voted for (eye-roll). Goodbye auto production jobs….
This isn’t about automobile prices. It’s about keeping up oil demand for this oil drilling friends, both here in the US and in the Middle East.
As long as auto makers can make a lot of money off large SUVs and pick up trucks, the price of autos will not go down.
Another sad move by the administration. Ignoring the big picture of climate change for short term “wins” on auto prices is not going to turn out well. One day it is not going to matter how much money you have, if you don’t have clean air to breath, clean water to drink or a place to live (as climate change increases the severity of weather). Such small-minded thinking once again by those that don’t care about the environment.