Administration Busy on Fuel Economy; Conference Process on Chip Funding Moves Forward
Today the Biden Administration rolled out new Corporate Average Fuel Economy (CAFE) standards which are even more stringent than what the National Highway Transportation Safety Administration (NHTSA) proposed over the summer. Secretary of Transportation Pete Buttigieg announced this morning that the new standards will require an 8% increase in fuel economy by 2024, a 10% increase by 2026, and an industrywide average of 49 miles per gallon. In August the NHTSA proposed an 8% annual increase for model years 2024 through 2026, and an industry wide average of 48 miles per gallon.
Also this week, the NHTSA issued a rule reinstating steep fines for automakers not meeting fuel efficiency requirements for model years 2019 and later. The Trump Administration had delayed a 2016 regulation that more than doubled penalties for automakers failing to meet CAFE standards to $14, up from $5.50, for every .1 mile per gallon short of the standard for every noncomplying vehicle. The new penalties will take effect in 60 days.
Chip Shortage
The Senate sent the America COMPETES Act, which contains $52 billion in funding for domestic semiconductor manufacturing, back to the House this week after substituting it with the text of the U.S. Innovation and Competition Act (USICA). The House then rejected the Senate’s language and requested a formal conference. The procedural maneuvering is a necessary part of the formal conference process, which Senate Majority Leader Chuck Schumer (D-NY) has said is on track to begin before the end of next week.
USTR on the Hill
The U.S. Trade Representative (USTR) Katherine Tai was on Capitol Hill this week testifying before both the House and Senate committees with oversight over international trade on the administration’s trade agenda. Many members of the committees pressed her on the administration’s seeming ambivalence on negotiating new free trade agreements.
Registration is now OPEN for AIADA’s 2022 Washington, D.C. Fly-In. Hear directly from political experts, celebrate our industry’s successes, and meet with Capitol Hill offices. Don’t delay!
REGISTER TODAY!
Quote of the Week
“The problem here is that President Biden’s recognition of trade’s overall importance is not matched with an agenda that contains the requisite ambition to succeed. There is not a single free trade agreement under consideration in this agenda. Free trade agreements open opportunities. We have seen it over and over.”
-Senator Mike Crapo (R-ID), Senate Finance Committee Ranking Member (Politico)
ICYMI
This week AIADA announced that Bob Carter, Toyota Motor North America’s executive vice president of sales, will receive the 2022 Fritz Hitchcock Advocacy Achievement Award at the upcoming Washington Fly-In. To learn more, or register to attend, click here.
Friday Feel Good
Here are just a few recent examples of how the international nameplate auto industry is doing good in communities across the U.S.:
The Thompson Organization in Pennsylvania was driven to act when a church in their community put out a call for donations to send to Ukraine. Thompson asked customers and community members to join them in a week-long donation drive for humanitarian aid. From March 12-18, their dealerships and service centers collected personal hygiene and baby products to be sent to St. Anne’s Ukrainian Catholic Church in Warrington, Pa. The turnout was overwhelming, to say the least. They were able to fill more than 40 boxes with needed supplies.
Corree Darcus, who works at CMA Valley Dealerships in Virginia, has been raising money for a two-year-old from Augusta County who is currently undergoing cancer treatment at St. Jude’s in Memphis, Tenn. Every test drive taken with Corree includes a trip to Chick-Fil-A to get a cookie for Natalie. At the beginning of March, Chick-Fil-A donated a portion of cookies sold to the family as well. Darcus will also donate $25 of every car sale he makes for the next two months.
We want to hear more about how you are supporting your local community – tweet us at @AIADA_News and use the hashtag #DealersDoGood.
