The federal fuel efficiency mandates now in place to guide automakers toward a fleet average of 54.5 mpg by 2025 may curb United States auto sales after 2018, according to a leading economist speaking during the 2014 Management Briefing Seminars in Traverse City, Mich.
Automotive News reports National Automobile Dealers Association chief economist Steven Szakaly warned that the challenges associated with the new CAFE targets were severely underestimated by the industry in comparison to previous CAFE targets.
He says that while automakers are currently experiencing a resurgence in sales with "good profits" on large vehicles, such as pickups and SUVs, future sales past 2018 will pale in comparison — with little hope for avoiding those losses — as automakers focus more upon the 2025 CAFE target:
Unless gasoline prices rise significantly, or we see consumers becoming irrational and everyone buying an electric car, it's tough to think of consumers willing to pay $3,000 to $7,000 more for the exact same car, just because someone in Washington, D.C., or California says they need to buy it.
The post Szakaly: CAFE Targets Will Curb US Auto Sales Beyond 2018 appeared first on The Truth About Cars.
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