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Log In / Register | Jul 23, 2018

Study: 1 Million Jobs Will Be Lost because of Fuel Economy Rules

The Obama administration's plans, which automakers agreed to, call for a doubling of the average new vehicle's fuel economy by the year 2025, bringing it up to more than 50 mpg. But according to a study, if fuel prices remain low the results will be disastrous.

More than 1.1 million U.S. workers would lose their jobs because of tougher fuel-economy regulations coming next decade if prices at the gasoline pump remain low in America, a new study found.

With low fuel prices, consumers won’t get the payback they are expecting from expensive fuel-saving technology as automakers strive to reach a U.S. mandate to achieve 54.5 miles per gallon by 2025, according to the study released today by the Center for Automotive Research in Ann Arbor, Michigan. The group analyzed nine scenarios with varying fuel prices and technology costs and concluded that significant job loss would result in eight cases. — Keith Naughton, Bloomberg

Dealers, car factories and suppliers would be severely affected, which in turn would have an impact on other businesses because of the business downturn and the loss of buying power of the unemployed workers. Major automakers and GOP congressmen are saying the stringent fuel standards should be revised or even repealed, but Obama administration officials and Consumers Union are defending them.

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