The National Automobile Dealers Association (NADA) and American Truck Dealers (ATD) released a new report that calls into question the Environmental Protection Agency's (EPA) cost analysis of emissions control requirements for model year (MY) 2004-2010 commercial trucks. The mandates resulted in substantially higher prices for commercial vehicles, depressed sales, and delayed the environmental benefits that the EPA originally sought.
NADA/ATD released the following statement:
"Until now, few studies have ever compared the EPA's cost predictions to the actual cost of meeting its motor vehicle emissions mandates. The study, which looks back at the 2004-2010 medium- and heavy-duty truck emissions mandates, reveals that the EPA underestimated actual compliance costs on average by a factor of two to five. It shows what can happen when a regulatory proposal – based on far in-advance predictions – seeks to set mandates far in the future. Importantly, the study documents the real-world market disruptions that can occur as a result.
"The lessons learned from this report apply directly to the proposed MY 2017-2025 fuel economy regulations for light-duty vehicles. That rulemaking, combined with previous Obama administration fuel economy mandates, will raise the average price of a vehicle by $3,000, according to EPA and National Highway Traffic Safety Administration estimates. When faced with unreasonable federal regulatory mandates that increase motor vehicle costs, buyers of light-duty vehicles – similar to what commercial truck buyers experienced – will seek out less expensive alternatives in the marketplace."
The NADA represents nearly 16,000 new-car and -truck dealerships with 32,500 franchises, both domestic and international.
The American Truck Dealers, a division of NADA, represents about 2,000 new medium- and heavy-duty truck dealers. Founded in 1970, ATD members share in NADA's programs, services and benefits.