Consumer group raises alarm about rollback of mpg targets

WASHINGTON -- The Consumer Federation of America on Monday, countering automakers' efforts for relaxed 2025 model year fuel economy standards, released data it says show that the value of fuel savings from higher mpg outweighs the added cost of vehicles with fuel-saving technology.

The public interest group also said 79 percent of Americans strongly support 2012 rules negotiated by the Obama administration and automakers aimed at doubling fleetwide fuel efficiency by the 2025 model year to 54.5 mpg.

Federation officials warned that Congress and the Trump administration are under pressure from the auto industry to roll back the standards because they are too costly and consumers won't accept the higher price of vehicles.

For more CFA data, click here.

"Our analysis clearly indicates that the car companies are fully capable of meeting the CAFE standards and they are able to do so with great savings for consumers," Jack Gillis, the federation's director of public affairs and author of The Car Book, said in a statement. "Rolling back the standards at this point would not only hurt America's already financially beleaguered consumers, but they would hamper vehicle sales and put U.S. car companies at a distinct competitive disadvantage to the Asian car companies who will meet the standards."

The federation compared the price and fuel efficiency of 27 all-new 2017 vehicles, which had 79 versions, and found:

• 27 percent of the vehicles introduced in 2017 cost less than 2011 versions and achieved 1 to 10 mpg better fuel economy.
• Nearly half of the 2017 vehicles cost less to buy and fuel than their 2011 counterparts, when estimated over 5 years.
• 58 of the 79 vehicles increased in price, but 12 vehicles had fuel savings that offset the entire price increase and more than half had fuel savings that offset the increased cost of the fuel-saving technology.
• The added per-vehicle cost of fuel economy averaged $320 but the estimated fuel savings averaged $946.

The federation said automakers are making good progress complying with the standards, with 70 percent of 2017 vehicles having a corporate average fuel economy-compliant trim compared with 41 percent of all-new vehicles in 2015, and six vehicles already meeting the 2025 model year fuel economy target. Fifteen of 17 automakers studied improved CAFE compliance rate from 2015-17, demonstrating that the industry is up to the task of meeting higher standards, the organization said.

In March, the Trump administration agreed to reopen the midterm review of the 2025 model year standards originally scheduled for 2018 that were locked in place by the Obama administration under an accelerated timetable. Automakers argue that cheap fuel prices have undermined demand for fuel-sipping cars and light trucks, and that assumptions about reaching the targets in eight years need to be re-evaluated before moving ahead with the next phase of development.

"Ultimately, our compliance is based on what consumers buy, not what they buy in a study or in a public opinion poll,” Gloria Bergquist, vice president of communications and public affairs for the Alliance of Automobile Manufacturers, said Monday. “Consumers value fuel economy, but sometimes they aren’t willing to pay more for fuel-efficient technology especially with today’s low gas prices. And that’s a challenge for us and the government.”

The federation has submitted comments to the Department of Transportation and the EPA urging the agencies not to undermine existing CAFE standards.