The automaker warns the entire industry could face catastrophic financial pain.
In a turn of events some find shocking, General Motors has sounded the alarm on the Biden administration's vehicle fuel economy rules proposal, claiming it could cost automakers hundreds of billions of dollars in penalties. However, as Reuters has reported, Biden officials claim GM is blowing things well out of proportion.
Are your days of owning a car numbered?
According to Reuters, GM executive David Strickland had a meeting on July 17 with White House Office of Management and Budget officials to talk about the federal government's proposed fuel economy regulations. That visit doesn't seem to have gone well, because afterwards, GM dropped a neutron bomb of sorts on the stricter CAFE standards for the 2027 to 2031 model years, claiming they could result in $100-300 billion in penalties for automakers.
That's no small quantity of cash, average out to somewhere between $1,300 to $4,300 per car sold, a cost of doing business that would be passed on to consumers. NHTSA, which has oversight of CAFE regulations, took issue with GM's statement, saying the “estimate is pure speculation and inaccurate.” So it seems tensions between the auto giant and the Biden Administration are on the rise.
To anyone who's been paying attention to recent developments, this shouldn't be a total shock. Even though GM and Biden have cozied up on a number of occasions, with CEO Mary Barra posing for PR photos and such, automakers aren't happy with recent regulatory moves. In fact, a lobby group that represents GM and many other big automakers, recently showed resistance to the EPA's rather aggressive vehicle pollution limits proposal, showing that the industry doesn't appreciate having its wings clipped. This stands in stark contrast to the image Biden has projected of being pro-American commerce, in particular manufacturing and especially the auto industry.
Ultimately, this rift between GM and the Biden administration might be shocking to some, but it was something we thought was likely. Certain automakers, like GM, cozied up to Biden and got on the EV bandwagon, ignoring the realities of what this administration aimed to ultimately do. Now that things are firming up with these new CAFE standards, GM seems to have realized its gross miscalculation.
While in a way we think it's hilarious that GM is dealing with the consequences of its actions, at the same time we also know government fines as well as the development costs required from automakers to comply with sharply increasing regulatory requirements will only put the squeeze on consumers. In other words, if you think vehicle prices have been out of control in the past few years, hold onto your hat because what the Biden administration is pushing to do is almost guaranteed to spike prices far beyond anything we've seen yet.
This article originally appeared in The Auto Wire. The opinions expressed in this article are those of the author and do not necessarily reflect the positions of American Liberty News. Republished with permission.
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Automate more
produce hybrids
Cut Hq overhead
Reorganize
Outsource
Let’s hope the Democrats keep pissing off big business. Then they won’t help them cheat on another election.
Biden does not care about the average American. He only cares about those who are scaring us about man made climate change, which is a hoax. In the 1970’s there was the new ice age scare followed by the global warming scare in the 1980’s. Now its climate change. This term is used so that whenever there is any variation from the norm they can say that it is because of climate change. All climate change has natural causes such as changes in the temperature of the sun, the distance of the earth from the sun, and eruption of volcanoes. Greenhouse gases are not pollutants; they are gases necessary to sustain plant life.
If anyone could ruin the auto industry it would be the demented and corrupt Biden.
It’s about time dropped their cozy relationship with the crooked Biden Democrat administration, grew some balls and sued the Administration! Anyone who thinks anything but hybrids will satisfy Americans are insane. We are a nation of freedom and would be insane to give that up while the Asians are building coal-fired power plants at our expense!!