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ANALYST BRIEF: Affordability of Vehicles Under the Current National Program in 2022-2025 for Detroit Three Automakers

Declining affordability has been cited by opponents of maintaining 2022-25 fuel economy regulations. According to their argument, as manufacturers pass on to their customers the cost of meeting the regulations, vehicle prices will rise, resulting in fewer sales and preventing many middle-class Americans from purchasing new vehicles. This paper addresses the affordability issue, and shows that rising new car and light truck transactions prices reflect automaker strategy and consumer preferences, with regulation-driven cost increases playing a much smaller role.

Affordability Analysis.pdf — PDF document, 2577 kB (2639147 bytes)