Former Chrysler CEO warns of unintended consequences of new climate standards on auto industry
Former Chrysler CEO Bob Nardelli on Thursday warned of the unintended consequences of the Biden administration’s new regulations and emissions standards on the auto industry during FOX Business’s “Mornings with Maria”.
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BOB NARDELLI: I went through that time, the Obama era, when they were increasing emissions regulations. And again, I would say the auto industry was trying to do well on its own. They were using the best available Technology throughout this process. And we were making tremendous progress. What’s interesting about these standards is that the key word here is “park-wide”. So if you are not able to meet these standards, what it might force an OAM to do is reduce the number of trucks, large SUVs, and then offer their customers only small compliant vehicles. who would then, on the whole park base, meet the [corporate average fuel economy (CAFE)] standards.
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We see General Motors moving towards more and more electric because it knows the cost of capital, the allocation of capital. If they have to spend it on improving their fuel mileage, they might as well switch to electricity. And yes, it will increase the cost of electricity.
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You can already see the parking lot at about 11 years old, 280 million units there. And what I would say is that people will keep their cars longer than pay higher prices. And the higher prices are a result of availability and not having to offer those huge discounts to get you into the showroom to make that new car purchase. So what do you think of those hidden agendas of switching to electricity – putting 500,000 charging stations out there, but no one knows how electricity is going to get there and who is going to regulate these – who is going to be in charge of it? on the retail side of these charging stations? So I think we have huge confusion for this industry in the future.
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