White House, Automakers at Odds on 56 MPG Fuel-Economy Goal
The Obama administration and auto industry are divided over whether future advancements in battery technology can support a proposal to roughly double fuel economy to 56 miles on a gallon of gasoline by 2025. Government officials estimate the costs of meeting the mileage and emissions target would add between $770 and $3,500 to the cost of a new car. The Alliance of Automobile Manufacturers says research shows such big gains in fuel economy could raise vehicle prices by $6,000 or more. The White House agreed to re-evaluate the fuel economy target in 2020.
New ‘Right to Repair’ Legislation Resurfaces
The "right to repair" issue is resurfacing with the introduction of new initiatives by several states and Congress. This would require vehicle and equipment manufacturers to provide independent repair shops and vehicle owners with the same repair information they provide to dealerships. Supporters say independent repair shops are at a competitive disadvantage because vehicle and equipment manufacturers are selective about providing detailed repair data. Opponents argue that legislation is not necessary and might result in increased costs for independents.
Dealers Struggling to Find Late Model Used Cars
With 2009 new-vehicle sales representing about 60% of what they were in 2005, up to 40% fewer used cars were being traded in. Those declines have meant there are a lot fewer of the prime, low-mileage, late-model used cars around to sell in dealer lots. In particular, with gasoline prices higher this year, there aren't a lot of late-model small used cars such as the Honda Civic, Toyota Corolla and Ford Focus around, and demand for them is up.
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GM had a great sales month in June and a big drop in discounts, giving the maker the highest grade in TrueCar.com?s June Performance Scorecard. Chevrolet was the brand receiving the highest grades. The Japanese automakers continued to be on the bottom of the scorecards due to low inventory, leading to low retail sales change and a decrease in market share change.
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U.S. auction prices increased 1 percentage point in June for Openlane?s online sales, and 2 percentage points above June 2010. Openlane economist Nagi Palle sees the market one of less demand, but still low supply. He expects supply to remain down over the next three quarters due to a lack of new-car sales and leasing in the past three years.
