FOR IMMEDIATE RELEASE
Major Businesses and Investors Support Fuel Efficiency and Greenhouse Gas Standards
MPG Targets Protect Health of U.S. Auto Industry and Whole Economy
Major businesses, as well as 38 financial institutions and investors with over $740 billion in assets, expressed support for fuel economy targets and greenhouse-gas emissions standards saying they are good for American automakers and good for the economy as whole:
“Given its size and connections to so many other sectors, the health of the auto industry has a significant impact on the broader economy,” the businesses wrote in a letter to Environmental Protection Agency Administrator Gina McCarthy.
“As successful American businesses, we know the importance of recognizing and seizing opportunities,” they continued. “We support staying the course on the standards because they represent an important opportunity to strengthen our economy, save consumers and businesses money, enhance the competitiveness of the American auto industry, and mitigate climate risk.”
“EPA’s decision to stay the course is good news for the auto industry, consumers, and the broader economy; the standards will help ensure the global competitiveness of the industry, save consumers money and create jobs,” said Carol Lee Rawn, director of transportation programs at Ceres.
A 2016 Ceres analysis found that if the standards were weakened and gas prices spiked it could lead to 300,000 fewer vehicles sales for automakers and a loss of $1.08 billion in profits. Suppliers, which employ two and half times more jobs than automakers, would be hit hard, too, losing $1.42 billion in sales.
“The standards represent a critical opportunity to strengthen the U.S. economy and create jobs – both by benefiting the auto industry and by ensuring fuel cost savings, which in turn will increase spending on non-energy goods and services,” investors said in a separate letter. “In addition, given the critical role of strong standards in driving innovation, the standards will also help ensure the global competitiveness of the industry.”
Ceres’ latest analysis found that a shift toward trucks and the addition of luxury features, as well as increasing income inequality and a stronger economy, account for the fact that low and middle-income buyers are being priced out of the new car market. The analysis refutes claims that fuel economy standards are to blame for making new cars less affordable for these consumers.