FOR IMMEDIATE RELEASE
Major investors caution against weakening MPG rules
Auto industry, consumers and economy benefit from strong fuel economy standards
As the comment period closes on the Corporate Average Fuel Economy (CAFE) Technical Assessment Report released by federal and state agencies, major investors are releasing statements in favor of strong fuel economy and greenhouse gas emissions standards.
Ken Locklin, director of Impax Asset Management and Stu Dalheim, vice president of Calvert Investments are members of the Investor Network on Climate Risk (INCR), a project of Ceres that represents over $14 trillion in assets.
Ken Locklin, Impax Asset Management:
“The health of the auto industry has a significant impact on the economy as a whole. Strong fuel efficiency standards have enhanced American competitiveness and innovation, creating opportunities for investment. Retaining or increasing these mileage standards represents a critical opportunity to continue this trend by reducing risk for the Detroit Three automakers and benefiting suppliers.”
Stu Dalheim, Calvert Investments:
“The automotive industry has a lot to lose if fuel efficiency standards are weakened. If we stay the course toward more efficient cars and trucks, we can continue to strengthen our economy, spur innovation, reduce our dependence on oil, save consumers money and create jobs – no matter what happens with gas prices.”
Carol Lee Rawn, Director of Ceres Transportation Program:
“Strengthening fuel economy standards has provided global opportunity for the auto industry and job growth for America. That’s why members of the Investor Network on Climate Risk and Business for Innovative Climate and Energy Policy called for strong fuel economy standards in 2010. There is no reason to slow down now."
Ceres produced an analyst brief examining how automakers and suppliers would benefit under different gas price and fuel economy stringency scenarios:
- Under current standards, the Detroit Three will be profitable given a wide range of fuel prices, even if gas prices fall as low as $1.80 a gallon.
- If standards are weakened and gas prices spike:
- Suppliers, which provide two and a half times more American jobs than the top domestic automakers, could lose up to $1.42 billion a year in sales of fuel-efficient technologies.
- The Detroit Three could lose over 300,000 vehicle sales and $1.08 billion in profits.
- Read the analyst brief fact sheet and press release.
- In a blog, analysis authors rebutted industry claims that the standards are too expensive to meet at a time when gas prices are low.
Citing the analyst brief, Ceres’ BICEP, a coalition of businesses representing over $400 billion in annual revenue, submitted a letter to the Environmental Protection Agency and Department of Transportation supporting the standards.