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NHTSA & EPA Blink at Reality

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#1 ·
Trying to have it both ways only works one way. Notice, of course, the requirement to use "diversity" in any statement.


NHTSA Deputy Administrator King to Congress: SAFE Vehicles Rule Will Put More Americans In Newer, Safer Cars and Trucks
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June 20, 2019 | Washington, DC
“Consumers are more likely to upgrade to newer, cleaner, safer cars if costly regulations don’t raise the price beyond consumers’ means.”

Infeasible fuel economy standards raise the price of new vehicles and prevent families from purchasing newer, safer cars and trucks, National Highway Traffic Safety Administration Deputy Administrator Heidi King told Congress on Thursday.

“We know that newer cars are safer and cleaner than older cars. We also know that consumers can choose whether to keep their older car or to purchase a newer, safer, cleaner car. This is relevant since there are already more cars than adults in our country. Standards that increase the price of a new car can hinder safety by discouraging people from replacing their older cars with cleaner, safer, newer cars,” she told members of the House Energy & Commerce Committee during a joint subcommittee hearing.

A copy of Deputy Administrator King’s testimony as prepared for delivery is available here. https://www.nhtsa.gov/congressional-testimonies/hearing-fuel-economy-standards

Last year, NHTSA and the U.S. Environmental Protection Agency together proposed the Safer Affordable Fuel Efficient (SAFE) Vehicles Rule to establish new fuel economy and greenhouse gas standards for model year 2021-2026 passenger cars and light trucks. The rulemaking comes as American consumers are finding new vehicles less affordable.

“Today, we are facing an affordability crisis in the new car market. The average price of a new vehicle exceeds $37,000, and new vehicle prices have risen 29% in the past decade, while median family income grew only 6% during that period,” she said.

The proposed rule also comes as the automotive industry is struggling to meet current fuel economy targets.


“Today, automakers are struggling to meet the existing standards. EPA’s latest ‘Trends Report’ showed that despite record fuel economy gains, all but three of the thirteen major automakers failed to meet their performance targets for the 2017 model year,” King said.

Moreover, consumers face diminishing returns as fuel economy standards rise.

“As fuel economy improves, the incremental gains to consumers diminish,” Deputy Administrator King said. “That means that each additional fuel economy improvement becomes much more expensive as the low-cost technological improvement options are already deployed.”

The SAFE Vehicles Rule encourages innovation and allows automakers the flexibility to respond to consumers’ needs.

“I assure you, the SAFE Vehicles Rule will establish maximum feasible standards that would not prevent any auto manufacturer from designing and building next-generation highly fuel-efficient vehicles, including hydrogen fuel cell vehicles, battery electric vehicles, hybrids, and plug-in hybrids in response to market demands,” King said. “In fact, I am excited – we are all excited – to witness the expansion of the diverse designs and power trains, providing more consumer choice.”

As the final rule is crafted, regulators are considering hundreds of thousands of public comments, as well as available data.

“NHTSA and EPA are working together to ensure that this important rule will rely on the best possible engineering and economic information, data and science, and that we review the comments thoroughly in order to assure a final rule that is reasonable, appropriate, transparent, and consistent with the law given current facts and conditions,” Deputy Administrator King said.

https://www.nhtsa.gov/press-release...ss-safe-vehicles-rule-will-put-more-americans
 
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#3 ·
“Today, we are facing an affordability crisis in the new car market. The average price of a new vehicle exceeds $37,000, and new vehicle prices have risen 29% in the past decade, while median family income grew only 6% during that period,” she said.
I think that $37k figure suggests the opposite of the point Ms. King is trying to make. I think it suggests that people can afford to buy expensive vehicles. Otherwise there are plenty of good options at much lower prices. In fact, most of those lower-priced options are on the chopping block due to lack of demand.

Looking at averages is also never a good way to make informed decisions but that's a whole 'nother can of worms.
 
#4 ·
Notice, of course, the requirement to use "diversity" in any statement
:yup:
Like any good federal government bureaucrat, Ms. King was also required to use the word "crisis" at least once. She succeeded. :D

I think it suggests that people can afford to buy expensive vehicles. Otherwise there are plenty of good options at much lower prices.
Wealthy people can of course afford to buy expensive vehicles (here's one standard courtesy of Financial Samurai, titled "The Net Worth Rule For Car Buying Guideline"). But not middle class or working class folks.

Another much more generous standard is the 20/4/10 rule. Even using the this standard, in only one U.S. metropolitan area can a household making that area's median income afford a $37k car: Washington, D.C.
 
#5 · (Edited)
And truck vs. car prices are another matter entirely.

Pickups are pricing out the average new vehicle buyer
Jamie L. LaReau, Detroit Free Press Published 6:00 a.m. ET Oct. 4, 2018 | Updated 11:38 a.m. ET Oct. 4, 2018

Truck enthusiasts Ernest Johnson and Mike Herron couldn't be more different.

Johnson, 80, lives in Pontiac. He retired from General Motors in 1999 where he drove a tractor-trailer delivery truck for 35 years.

Meanwhile, Herron, 65, lives in Durant, Oklahoma, about 50 miles north of Dallas. He owns four businesses and is a real estate investor who has driven BMW sports cars for the past decade.

Yet, each paid an amount equal to that of a small house to buy new 2019 GM pickups.

"The price is a little high, but with all the technology on it, I guess it's worth it," said Johnson. "But, in the future, it's something a lot of people won't be able to afford."




"Then, I'm going for a Bentley or something. Trucks are expensive because they do a lot and I understand that concept," said Wagner. "But $70,000 is when I have to start answering to people. I have a business partner, and my wife would have said, 'Wait a minute, buddy.' "

Wagner is generous compared with most average pickup buyers. In September, website shopping site CarGurus surveyed 203 current pickup owners from the CarGurus user panel. It found that, on average, pickup owners said $35,000 would be a good deal on a new pickup, but $45,300 would be too much to pay.

The current average list price of a new pickup on CarGurus is right at the “too high” threshold — about $45,200, said Madison Gross, CarGurus' senior manager of customer insights. Pickup owners with a household income more than$100,000 said $40,600 would be a good deal and $51,800 would be too much to pay, said Gross.

Is all that technology worth it?
Car dealer Charlie Gilchrist, owner of Gilchrist Automotive in the Dallas-Fort Worth area, worries that pickups will soon be unaffordable to many of his customers.

"In 1988, I sold my first pickup at $20,000 and I thought, 'Man, who could ever afford this?' " Gilchrist said. "Now, they're $60,000, $70,000, $80,000. ... I'm not sure everybody wants all that technology, but we're adding all of it. We're actually in the luxury business at those prices."

Gilchrist may be on to something. The CarGurus' survey found that 78 percent of respondents said they would forego an automatic open-close tailgate and 63 percent said they'd give up a Wi-Fi hotspot to get a lower price. More than half said they would give up head-up display or lane-keeping assist.

“This survey showed that pickup truck owners believe some of the new technology is nice to have, but not essential and not worth the price," said CarGurus' Gross. "We’re at an interesting time in the pickup truck category where many people are using their pickup trucks for more than just work. Those looking for a truck purely for work purposes don’t need all of the new luxury features, and those looking for a truck for commuting or leisure don’t need all of the new work features.”

Still, Herron was one of Gilchrist's GMC customers. Gilchrist said he has had others trade in Mercedes-Benz vehicles to buy a pickup. Then there are those really rich orders such as the Ford Platinum F-450 Super Duty truck Gilchrist sold for $100,000.

"It's a statement," said Stephen Gilchrist, dealer operator at Gilchrist Automotive. "They're a professional rodeo person, so it's part of who they are."

No end in sight to high prices
So what will ultimately bring down the price of pickups?

Simple supply and demand. Consumer demand is high among people who seek the luxury or utility of big trucks and with gasoline prices staying at relatively low prices, that demand won't dissipate, analysts said. The average price of regular gas was $2.88 on Oct. 1, according to AAA. That's a far cry from its peak of $4.11 in July 2008, AAA shows.

"If you look at 2005, 2006, 2007 as the gas prices were spiking, people stopped buying SUVs and pickups except for work purposes," said Maryann Keller, principal of auto industry analyst firm of Maryann Keller & Associates in New York.

That shift to cars radically impacted the Detroit Three's earnings, helping tip GM and Chrysler Corp. into federal bankruptcy protection. Keller said. A return to consistently high gas prices above $4 to $4.50 a gallon would shift consumers to the more affordable car segment, possibly driving down the sticker prices automakers could command for pickups, she said.

Or a downturn in the economy could lead to lower pickup prices, Strategic Vision's Edwards said.

But for now, he said, "those who love their trucks are willing to spend on a truck and the image of that truck reflects the image of what they want to be. I don't think we'll see prices lowering on that in the near future, especially since there are so many capabilities and features that the person needs and the image that they want."

Contact Jamie L. LaReau: 313-222-2149 or jlareau@freepress.com


https://www.freep.com/story/money/cars/2018/10/04/pickup-truck-prices-vehicles/1455588002/
 
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#8 ·
a few things
#1 over priced pickups IMHO is PURELY market driven
you can get a fully capable Pickup for $30K it does EVERYTHING a 70K version does and in some cases has the SAME ENGINE but buyers want the optional equipment and packages

#2 I do BELIEVE CAFE is the REASON CARS ARE DEAD full stop buyers do NOT WANT FUEL ECONOMY to impact interior room and comfort
sedans are so LOW with sloping roof lines making them hard to get into AND the back seats useless
 
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