Tags: Obama | climate | change | trucks

Forbes: Small Truckers Could Get Run Over by New Federal Fuel-Efficiency Regs

By John Morgan   |   Friday, 21 Feb 2014 12:15 PM

American truckers are saving with more fuel-efficient vehicles, but could end up losing money because their costs are mushrooming from the accompanying onslaught of federal energy regulations, Forbes reported.

According to Forbes’ Detroit bureau chief Joann Muller, a veteran of the auto industry beat, President Obama’s tough stance on new fuel efficiency standards on vehicles ranging from heavy-duty pickups to 18-wheeled semi-trucks is bound to have a steep price tag.

Editor's Note: Add Up to $152,046 to Your Social Security Benefits Using Weird Trick

“Each year for the past 10, more and more truckers are squeezed out of the option to buy new equipment because of ever increasing prices due to government requirements that are long on promises but way short on performance,” said Todd Spencer, executive vice president of the Owner-Operator Independent Drivers Association, a trade group of small trucking companies and drivers.

“We’re not talking about some 60-watt light bulbs here where poor performance or premature failure is a minor inconvenience. Large trucks are vital tools, essential to our economy and our way of life, and most trucker operators are small-business people just getting by.”

The group, which represents 150,000 companies and drivers, claims the standards will keep boosting the price of new trucks, forcing owners to hold on to older models longer and delay buying new ones for as long as possible.

The Environmental Protection Agency has projected the 2014-2018 standards will add about $6,200 to the price of a new truck, but maintains net savings in fuel will more than make up for the increase. The administration has not yet released how much the second round will tack on.

The American Truck Dealers, a division of the National Automobile Dealers Association, estimates EPA mandates from 2004 through 2010 alone tacked on $21,000 to new truck prices.

Since 2008, the unadjusted average test fuel economy of new cars and light trucks in the U.S. has risen by about 4 miles per gallon, Forbes reported.

Jeremy Anwyl, president of consulting firm Marketec Systems, warned that if stricter government standards outpace fuel-efficiency technology, costs could skyrocket.

“Push the number up suddenly and the costs associated with the increase shoot up,” he said. “But a measured set of increases over a reasonable timeframe can be managed fairly easily.”

The Wall Street Journal reported an alliance of large fleet operators, including Federal Express and Con-Way, is supporting the tougher new fuel standards on large trucks.
The Journal said Obama’s call for stricter standards is part of the president's climate change strategy.

Editor's Note: Add Up to $152,046 to Your Social Security Benefits Using Weird Trick

Related Stories:

© 2015 Newsmax Finance. All rights reserved.

1Like our page

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

© Newsmax Media, Inc.
All Rights Reserved