Major automakers and the National Automobile Dealers Association have already voiced their concerns over proposed fuel economy standards that could require a 56.2mpg fleet average, with the United Auto Workers union now joining the opposition.
Like most automakers, the UAW is concerned that a hike in CAFE standard to 56.2mpg could lead to a dramatic decrease in new car sales. The Obama administration estimates that a 56.2mpg standard would raise the average vehicle price by $2,100, but some industry experts have predicted the move could raise prices by as much as $10,000 per vehicle, which would price many consumers out of the market.
Large trucks and SUVs would be the hardest hit by the proposed standards, potentially leading to more plant closures. The UAW can nary afford any more job losses as it membership is already nearing record lows.
Some analysts predict that a 62mpg fleet standard could cost the industry 250,000 auto-related jobs.
The MPG comes at a crucial time for the UAW as it is set to begin contract talks with Ford, General Motors and Chrysler within the next few days. The UAW’s current contract with the Big Three expires on September 4.
